FBAR Filing Requirements [Free Step-By-Step Guide]

FBAR filing requirements can leave you confused and maybe a bit overwhelmed, especially if it’s your first time filing.

But, the good news is, filing an FBAR is actually straightforward and relatively easy to do.

In this free guide, we’re going to share everything you need to know to successfully navigate the process.

Of course, if you need help navigating your banking options, you can also use our other FREE resources that discuss foreign bank accounts for US citizens by clicking here.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. FBAR Filing Requirements
  2. Who Is Required to File an FBAR?
  3. Filing FBAR for Foreign Bank Accounts
  4. Frequently Asked Questions
  5. Ready to Explore Your Options?

FBAR Filing Requirements

FBAR filing requirements refer to the mandatory reporting of bank accounts, brokerage accounts, mutual funds, other financial accounts, and signing authority over financial accounts held outside of the United States by US persons. 

To comply with FBAR filing requirements, a Report of Foreign Bank and Financial Accounts (FBAR) must be filed with the US Treasury Department via the US Financial Crimes Enforcement Network (FinCEN).

Importantly, these requirements do not only apply to individual account holders. Instead, any US citizen, resident, corporation, or LLC is obligated to file Form 114 with FinCEN if they meet the foreign financial account requirements. Additionally, US partnerships and estate planning entities like trusts must also comply with the FBAR filing requirements.

In short, every US person and every US entity must file Form 114 if they pass the reporting thresholds. So, what are the FBAR thresholds? We’ll take a close look in the next section of the article.

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Who Is Required to File an FBAR?

US persons (or entities) are required to file an FBAR if, at any point during the calendar year, they had a financial interest or signing authority of one (or more) financial accounts outside of the United States.

That said, filing an FBAR is only required if the aggregate value of the accounts held outside of the United States reached $10,000 (or more) during the calendar year. To avoid any confusion, it’s important to reiterate that even if the aggregate value of the accounts reached $10,000 momentarily, filing Form 114 is still a mandatory requirement.

FBAR Reporting Regulations

While FBAR filing requirements are generally thought of in the context of a person’s personal foreign financial accounts, these requirements also apply to any account that a person has signing authority over outside of the United States.

With this in mind, if you have signing authority over the foreign financial account of a company, you may also be required to file an FBAR – this would of course depend on whether the aggregate value of this account and all of your other foreign financial accounts reached $10,000 at any point during the year.

Filing FBAR for Foreign Bank Accounts

Not surprisingly, foreign bank accounts are considered foreign financial accounts. So, any US person with foreign bank accounts that meets the reporting requirements outlined above will need to file Form 114.

Fortunately, Form 114 can be filed electronically through the Financial Crimes Enforcement Network (FinCEN) website. There you can choose between filing as an individual or an institution. After making your selection, proceed to complete the FBAR filing requirements through their online platform.

That said, we suggest that anyone meeting the reporting requirements for Form 114 takes a detailed look at the IRS’s website before proceeding with submitting their report. That way, you’ll be able to access the latest information about filing times and processes.

FBAR Penalties for Not Filing Financial Accounts

If a US person does not meet their FBAR filing requirements, there are penalties. This can include both civil penalties and criminal penalties depending on the severity of the violation.

In other words, it’s important to monitor your accounts closely. And, if the total value of the accounts you own or control reaches USD $10,000 at any point during the year, report correctly.

That said, if you have missed reporting deadlines in the past, the IRS does have two amnesty programs. These programs are for US expats to voluntarily correct past reporting mistakes (or omissions). Of course, this only applies if the failed reporting was a mistake.

Frequently Asked Questions

Below are three of the most common questions that we receive from people looking into FBAR filing requirements. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

What Triggers FBAR?

FBAR filing requirements are triggered when a US person has foreign financial accounts with a total aggregate value that reached US $10,000 at any time during the calendar year. This also applies to accounts held by corporations, LLCs, estate planning entities, and accounts that US persons have signing authority over in their name or other names.

Do I Need to File FBAR Every Year?

You need to file FBAR every year that you have foreign financial accounts with an aggregate value of USD $10,000 at any point during the year. This includes the total value of accounts you hold personally and have signing authority over. For example, signing authority can include a bank account in the name of a company that you work for.

Who Is Exempt From FBAR?

Anyone that does not have foreign financial accounts with a total aggregate value that did not reach US $10,000 in a calendar year is exempt from FBAR. Likewise, foreign non-residents who are not US persons are also exempt from FBAR.

Ready to Explore Your Options?

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Of course, if you have any questions, please contact us directly.

GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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