What is FBAR (FinCEN 114)?
FBAR (FinCEN 114) (Report of Foreign Bank and Financial Accounts) FBAR (Report of Foreign Bank and Financial Accounts) is filed with FinCEN (Financial Crimes Enforcement Network), not the IRS. It reports foreign financial accounts including bank accounts, brokerage accounts, mutual funds, and other types of financial accounts maintained with a foreign financial institution.
| Detail | Information |
|---|---|
| Official Name | Report of Foreign Bank and Financial Accounts |
| Filing Deadline | April 15 with an automatic extension to October 15. No form needs to be filed for the extension — it's automatic. |
| Penalty for Non-Filing | Non-willful: up to $12,500 per violation. Willful: up to $100,000 or 50% of account balance (whichever is greater) per violation. Criminal penalties of up to $250,000 and/or 5 years imprisonment for willful failure. |
| Filed With | FinCEN (online via BSA E-Filing) |
Who Needs to File FBAR (FinCEN 114)?
US persons (citizens, residents, and entities) with a financial interest in or signature authority over foreign financial accounts if the aggregate value of all foreign accounts exceeds $10,000 at any time during the calendar year.
Non-Resident Relevance
If you are a non-resident entrepreneur with a US LLC or US-source income, FBAR (FinCEN 114) may be a critical part of your US tax compliance. Consult with a qualified tax professional to determine if this form applies to your situation.
Filing Deadline
April 15 with an automatic extension to October 15. No form needs to be filed for the extension — it's automatic.
Filing on time is critical. The FBAR has an automatic extension to October 15 — no additional form is needed to get this extension.
Penalties for Non-Compliance
Penalty Warning
Non-willful: up to $12,500 per violation. Willful: up to $100,000 or 50% of account balance (whichever is greater) per violation. Criminal penalties of up to $250,000 and/or 5 years imprisonment for willful failure.
The IRS enforces these penalties strictly, especially for information returns related to foreign-owned entities. In many cases, there is no reasonable cause exception, making timely filing essential.
How to Complete FBAR (FinCEN 114)
Here is a section-by-section breakdown of FBAR (FinCEN 114):
Filer Information
Name, address, SSN/ITIN, and filing type (individual, consolidated, joint).
Account Information
For each foreign account: financial institution name, account number, type of account, currency, maximum account value during the year, and country.
Joint Account Holders
Information about other account holders for jointly-owned accounts.
Filing Tip
Given the complexity and steep penalties associated with FBAR (FinCEN 114), we strongly recommend working with a qualified tax professional who has experience with non-resident tax filings. Errors or omissions can trigger significant penalties.
Common Mistakes to Avoid
These are the most frequent errors we see when clients attempt to file FBAR (FinCEN 114) on their own:
- Not filing because individual accounts are under $10,000 (the threshold applies to the aggregate of ALL foreign accounts)
- Confusing FBAR with Form 8938 (different forms, different agencies, different thresholds)
- Not reporting accounts you have signature authority over (even if you don't own the account)
- Using the wrong maximum value (should be the highest balance at any point during the year)
- Not converting to USD using the Treasury Department's year-end exchange rate
- Not filing for a US LLC's foreign account (the LLC is a US person)
Need Help Filing FBAR (FinCEN 114)?
Our tax experts specialize in preparing and filing FBAR (FinCEN 114) for non-resident entrepreneurs. Avoid costly penalties — let us handle it.
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