Got an IRS letter about FBAR? Here's how to read it.
The IRS sends several different letters about FBAR. The letter number in the top-right corner tells you which one you have and what to do.
First step before anything else
Find the letter or notice number in the upper-right corner. It will be a code like “CP15” or “Letter 3708.” Every other decision flows from that code. Then find the response deadline — usually 30 days from the notice date. Write both down.
The five most common FBAR letters
Civil Penalty Notice — proposes an FBAR penalty under Title 31. Most common entry point. 30-day response window.
FBAR examination correspondence letter. Opens or continues the examination. Often precedes a CP15.
FBAR examination correspondence letter — typically used in follow-up or to communicate examination findings.
FBAR examination correspondence letter — common in the closing stages of an examination.
The opening letter for an FBAR examination. Less common than CP15 but signals the start of formal review.
Why an IRS letter, when FBAR goes to FinCEN?
FBAR (FinCEN Form 114) is filed with the Financial Crimes Enforcement Network, an arm of the Treasury. But FinCEN delegates FBAR examination and penalty enforcement to the IRS. The IRS uses the same notice and letter templates it uses for ordinary tax penalties, even though the underlying penalty is assessed under Title 31 (Bank Secrecy Act), not Title 26 (Internal Revenue Code).
The IRS letterhead and the “CP15” format can fool people into thinking this is a tax penalty. It is not. The mechanics of appeal, the standard of review, and the forum on judicial review are different from a normal tax case.
The deadline on every one of these letters
Every FBAR penalty letter has a written response window. CP15 is typically 30 days. Examination letters often give 30 days as well. The window starts on the notice date, not the date you received the letter — international filers should add postal time to their calculation.
Missing the window is what turns a soft proposal into a hard assessment. The single highest-leverage action you can take in the first 48 hours is to (1) write down the deadline and (2) book a consult with an international tax practitioner.
What the letter is NOT
- • Not a final bill. A proposed penalty notice can be challenged before assessment.
- • Not a criminal charge by default. FBAR criminal cases are rare and require willful conduct beyond a reasonable doubt; civil penalty cases are civil.
- • Not an audit of your income tax return. FBAR examinations look only at the FBAR filing obligation.
- • Not handled by your regular tax preparer's general malpractice insurance. Most general CPAs do not handle FBAR cases.
Frequently asked questions
The most common are CP15 (Civil Penalty Notice), Letter 3708, Letter 3709, Letter 3800, Letter 3949, and the general FBAR examination opening letter. The letter number is in the upper-right corner of the page.
FBAR is administered by FinCEN, but the IRS handles FBAR examination and penalty enforcement under a delegation agreement. Penalty notices come from the IRS even though the form itself is a FinCEN form.
A CP15 is a proposal. It states a penalty amount the IRS plans to assess and gives you a response window — typically 30 days. A final assessment is a bill (often a CP504 or other collection notice) that comes after the proposal becomes final.
Letter 3708 is typically an FBAR examination correspondence letter — it opens or continues the examination. CP15 is the proposed penalty notice that follows. They serve different stages of the same process.
No. Ignoring a proposed penalty notice causes it to become a final assessment after the response window expires. Even when the IRS is wrong, the way to fight back is a written response within the window, not silence.
In writing, always. Phone calls do not preserve a clean record and statements made informally still go in the case file. Have a practitioner draft the response.
Find an international tax practitioner
The notice itself needs a human. Three ways to find one:
- • The AICPA “Find a CPA” directory, filtered by international tax
- • The American Bar Association Tax Section practitioner directory
- • IRS Volunteer Income Tax Assistance (VITA) for income-eligible filers
For next year's FBAR
The fastest way to stay out of a future notice is to file the current-year FBAR on time. About 12 minutes. $29. FinCEN-ready in three steps.
FBAR File does not respond to the notice you already have. It files the current-year FBAR correctly.