The Bank Secrecy Act requires U.S. persons to file FinCEN Form 114 (FBAR) if they hold a financial interest or signature authority over foreign accounts with a combined value exceeding $10,000 at any time during the year.
The FBAR is a disclosure document filed with the Financial Crimes Enforcement Network (FinCEN), not the IRS. The government uses it to combat offshore tax evasion, money laundering, and terrorist financing.
FBAR requirements apply not only to personal accounts but also to signing authority on business accounts abroad—even if you have no financial interest in the account. Employees or officers who can authorize transactions on a company's foreign accounts may have personal FBAR filing obligations.
The requirement also applies to accounts you may not think of as "yours"—family accounts in a country of origin, inherited accounts from relatives overseas, or pension accounts from foreign employers. The $10,000 threshold is based on the combined maximum value of all foreign accounts at any point during the year.
The FBAR deadline is April 15, with an automatic extension to October 15. You must file electronically through the BSA E-Filing System—it cannot be filed with your tax return. You must report the maximum value of each foreign account during the year and provide details about each financial institution.
Several IRS programs can help resolve FBAR compliance issues. Streamlined Filing Compliance Procedures address non-willful violations with reduced penalties. Delinquent FBAR Submission Procedures may allow penalty-free filing if you properly reported all foreign income. Reasonable Cause statements can support penalty abatement in appropriate circumstances. The Voluntary Disclosure Program provides a path forward for willful violations with protection against criminal prosecution.
FBAR penalties are severe and accumulate quickly:
These penalties apply per account and per year of non-compliance, meaning liability can multiply rapidly for someone with multiple accounts or several years of missed filings. We help clients develop compliance strategies that minimize penalty exposure.
We begin with a detailed review of your foreign bank accounts, tax history, and past filings. This assessment clarifies your compliance status, identifies which years require FBAR filings, and uncovers potential issues like unreported signature authority over foreign accounts.
We analyze which IRS compliance program fits your situation—whether Streamlined Filing Compliance, Delinquent FBAR Submission Procedures, or another approach. We consider factors like whether violations were willful, how many years of filings are missing, and whether foreign income was properly reported on your tax returns.
We prepare and file all required FBARs through the BSA E-Filing System, and prepare or coordinate with your accountant to prepare and file any amended tax returns or disclosure statements. We handle all communications with the IRS and FinCEN on your behalf and negotiate penalty reductions when applicable.
Our objective is to bring you into full compliance while minimizing penalties. Once resolved, you'll have clear documentation and understand your ongoing FBAR filing requirements to stay compliant going forward.
Contact our Grand Rapids FBAR attorneys at (248) 262-3400 for a free case review. We'll assess your foreign account reporting obligations, explain your compliance options, and help you resolve any outstanding issues with the IRS.
