FinCEN Form 114: FBAR Filing Guide

What Is FinCEN Form 114?

FinCEN Form 114, Report of Foreign Bank and Financial Accounts, commonly known as the FBAR, is a reporting requirement administered by the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury. Despite being closely associated with tax filing, the FBAR is not a tax form and is not filed with the IRS.

The FBAR exists under the Bank Secrecy Act (BSA) as part of the US government's efforts to combat money laundering, tax evasion, and other financial crimes. For Americans living abroad, it is one of the most important—and most frequently overlooked—compliance obligations.

Who Must File an FBAR

You must file an FBAR if all three of the following apply:

1. You are a US person (citizen, green card holder, resident alien, or US entity).
2. You have a financial interest in or signature authority over one or more foreign financial accounts.
3. The aggregate value of all such accounts exceeded $10,000 at any point during the calendar year.

The $10,000 Threshold

The threshold is aggregate, not per-account. If you have two accounts with $6,000 each, you must file and report both accounts. The threshold is based on the maximum value at any point during the year, not the year-end balance.

Signature Authority

Even if you do not own the funds, you may have a filing obligation if you have signature authority—the ability to control the disposition of assets in the account by direct communication with the financial institution. This commonly applies to business owners and corporate officers.

What Accounts Must Be Reported

Reportable Accounts

• Bank accounts (checking, savings, CDs)
• Securities and brokerage accounts
• Mutual funds and pooled investment vehicles
• Insurance policies with cash surrender value
• Pension and retirement accounts
• Accounts with signature authority (even if you do not own the funds)

Non-Reportable Accounts

• Accounts at US military banking facilities
• Correspondent/nostro accounts (bank-to-bank)
• Accounts owned by governmental entities
• Accounts held at international financial institutions where the US is a member (IMF, World Bank)

How to File the FBAR

The FBAR must be filed electronically through the BSA E-Filing System.

Step 1: Gather Account Information

For each account, collect:

• Name of the financial institution
• Account number
• Type of account
• Maximum value during the calendar year
• Currency
• Address of the institution
• Country where the account is maintained

Step 2: Convert Currency

Convert foreign currency amounts to US dollars using the Treasury Department's end-of-year exchange rate for the applicable year. This is different from how you convert income on your tax return.

Step 3: File Electronically

Create a BSA E-Filing account or file as a one-time filer. Select "File FinCEN 114" and enter your personal information and each account's details.

Step 4: Save Confirmation

After submission, you will receive a BSA ID number. Save this as proof of filing.

FBAR Deadlines and Extensions

There is no further extension beyond October 15. Unlike tax returns, the FBAR's automatic extension does not require filing Form 4868.

FBAR Penalties

Non-Willful Violations

For civil penalties assessed on or after January 17, 2025, the maximum non-willful penalty is $16,536 per unfiled FBAR per year. Under the Supreme Court's Bittner decision, this applies per form, not per account.

Willful Violations

The penalty is the greater of $165,353 (inflation-adjusted) or 50% of the account balance at the time of the violation, per account, per year.

Criminal Penalties

Willful failure to file can result in fines up to $500,000 and imprisonment of up to 10 years.

Reasonable Cause

FinCEN may waive penalties if you demonstrate reasonable cause—showing that you exercised ordinary business care and prudence but were still unable to file. Simple unawareness is generally not sufficient on its own.

Catching Up on Missed FBARs

If you have not filed FBARs for prior years, several paths exist:

Streamlined Filing Compliance Procedures

For non-willful non-filers living abroad, the Streamlined Foreign Offshore Procedures allow you to file 3 years of tax returns and 6 years of FBARs with specified penalty treatment. You must certify non-willfulness under penalties of perjury.

Delinquent FBAR Submission Procedures

If you have no unreported income and are not under IRS examination, you may file late FBARs electronically with a statement explaining the delay. The IRS has stated it will not impose penalties in these cases if all income was properly reported.

Voluntary Disclosure Practice

For willful non-compliance, the IRS Voluntary Disclosure Practice provides a structured path back to compliance, though penalties are substantial.

FBAR vs. FATCA (Form 8938)

Many expats must file both. Filing one does not satisfy the other.

How FileAbroad Helps With FBAR Filing

FileAbroad prepares accepted current-year FBARs and screens delinquent-filing work within a written scope.

• Account identification: Determining which accounts are reportable, including retirement plans, insurance policies, and signature authority accounts.
• Valuation and conversion: Calculating maximum values and applying correct Treasury exchange rates.
• Electronic filing: Preparing and submitting your FBAR through the BSA E-Filing System.
• Multi-year screening: Reviewing filing history and recommending the appropriate catch-up path.

Penalty and intent questions are fact-sensitive. Seek an experienced tax attorney when legal exposure or willfulness is uncertain; FileAbroad refers matters outside its preparation scope.

Frequently Asked Questions

What is the FBAR filing threshold?

You must file an FBAR if the aggregate value of all your foreign financial accounts exceeds $10,000 at any point during the calendar year. This is an aggregate threshold across all accounts—not a per-account threshold. If you have three accounts with $4,000 each, the combined $12,000 triggers the filing requirement.

How do I file the FBAR?

The FBAR must be filed electronically through FinCEN's BSA E-Filing System at bsaefiling.fincen.treas.gov. There is no paper filing option for individuals. You will need the name of each financial institution, account number, account type, maximum value during the year, and the Treasury's year-end exchange rate for currency conversion.

What is the FBAR deadline?

The FBAR for a calendar year is due on April 15 of the following year, with an automatic extension to October 15. No form or request is required for the extension. There is no further extension beyond October 15.

Do I report foreign retirement accounts on the FBAR?

Yes. Foreign pension accounts, retirement savings plans, provident funds, and similar accounts must be reported on the FBAR if the aggregate threshold is met. This includes employer-sponsored foreign retirement plans and individual retirement accounts held abroad.

What are the penalties for not filing an FBAR?

For civil penalties assessed on or after January 17, 2025, the non-willful maximum is $16,536 per unfiled FBAR per year (per form, not per account, under the Supreme Court's Bittner decision). Willful violations carry the greater of $165,353 or 50% of the account balance. Criminal penalties can reach $500,000 and 10 years imprisonment.