If you have foreign bank accounts, you're required to file an FBAR (Foreign Bank Account Report) when the total value of all your foreign accounts exceeds $10,000 at any time during the calendar year. This includes accounts in any country, whether it's Canada, the UK, India, China, or anywhere else.
The FBAR is filed separately from your tax return through FinCEN (Financial Crimes Enforcement Network). Missing this deadline or filing incorrectly can trigger penalties ranging from $10,000 to $100,000 per violation—or even higher for willful violations.
Our Troy FBAR attorneys help you understand your filing obligations and correct past non-compliance before penalties escalate.
You must file an FBAR if you meet all three criteria:
1. You are a U.S. person - This includes U.S. citizens, residents, corporations, partnerships, LLCs, trusts, and estates
2. You have financial interest or signature authority - You own a foreign account OR you can sign checks/transfer money from it (even if you don't own it)
3. The aggregate value exceeded $10,000 - If the combined maximum balance of ALL your foreign accounts exceeded $10,000 at ANY point during the year, you must file
Reportable accounts include:
The IRS imposes harsh penalties for FBAR violations:
Non-Willful Violations:
Willful Violations:
Increased IRS Scrutiny:
Many Troy residents discover years of missed FBAR filings only after receiving IRS inquiries. Our FBAR attorneys help clients correct past non-compliance through voluntary disclosure programs, reasonable cause statements, and streamlined filing procedures—often reducing or eliminating penalties entirely.
We provide comprehensive FBAR compliance solutions:
For taxpayers with non-willful FBAR violations, the IRS offers streamlined procedures that allow you to catch up on unfiled FBARs with reduced penalties:
These programs typically result in zero or minimal penalties compared to the standard civil penalty framework.
If you didn't file FBARs but properly reported all income from those accounts on your tax returns, you may qualify for delinquent FBAR submissions with no penalties. We prepare your late filings and handle all IRS correspondence.
We craft compelling explanations for late filing, whether due to reliance on professional advice, medical emergencies, or other circumstances that the IRS may recognize as reasonable cause.
For situations involving willful non-compliance or potential criminal exposure, the IRS Voluntary Disclosure Program allows you to come forward before the IRS finds you. We guide you through this process to minimize criminal prosecution risk and reduce civil penalties.
Why Troy Residents Choose Ayar Law for FBAR Issues
Our law firm has helped clients with everything from simple single-account FBARs to complex cases involving multiple foreign financial institutions, offshore mutual funds, foreign pension plans, and international business accounts.
Minor FBAR filing issues can escalate into serious penalties and IRS scrutiny. While automatic extensions are available, they don't eliminate your filing obligations—and with annual reporting requirements, delays only increase your risk.
Get experienced legal guidance for your foreign account reporting:
Contact our FBAR attorneys at (248) 262-3400 for a free case review.
