You must report foreign bank accounts over $10,000 to the IRS and FinCEN using separate forms, and the deadline is the same as your tax return

If you are a U.S. citizen or resident alien with a foreign bank account, brokerage account, or other financial account that totals more than $10,000 at any point during the year, you have two reporting obligations. The first is to the IRS on your tax return using Form 8938. The second is to the Financial Crimes Enforcement Network (FinCEN) using the FBAR (Foreign Bank Account Report), officially called FinCEN Form 114. Both are due by the same deadline as your tax return — April 15 for most people, or October 15 if you file an extension.

The $10,000 threshold is measured by the highest balance in any single account during the calendar year, not the average. If your account held $9,500 in January and $10,100 in February, you must report it. The threshold applies to the combined total of all your foreign financial accounts, not each account separately.

Failing to report can result in civil penalties starting at $10,000 per violation, or criminal penalties including fines up to $250,000 and up to five years in prison. The IRS and FinCEN share information, so underreporting or omitting accounts is likely to be discovered during an audit.

Key Takeaways

  • Form 8938 goes to the IRS with your tax return if you have foreign financial accounts over $10,000; FinCEN Form 114 (FBAR) is filed separately with FinCEN by April 15 or October 15.
  • The $10,000 threshold is based on the highest account balance during the calendar year, not the average or current balance.
  • You must report all foreign financial accounts — bank accounts, investment accounts, retirement accounts held abroad, and accounts in your name held by someone else.
  • If you miss the deadline, you can file late with Form 8838-X (amended return) or a late FBAR, but penalties still apply unless you may have access to for reasonable cause relief.
  • Married couples filing jointly report combined account totals, but each spouse files their own FBAR if they have individual accounts.

Form 8938 and when it is required on your tax return

Form 8938 (Statement of Specified Foreign Financial Assets) is filed with your federal tax return. You must attach it to Form 1040 if you meet the threshold. The threshold depends on your filing status and whether you live in the United States.

For U.S. residents filing as single or married filing separately, the threshold is $200,000 on the last day of the tax year or $300,000 at any point during the year. For married filing jointly, it is $400,000 on the last day of the year or $600,000 at any point during the year. For U.S. residents abroad, the thresholds are higher: $400,000 on the last day of the year or $600,000 at any point during the year for single filers, and $600,000 on the last day or $900,000 at any point for married filing jointly.

Form 8938 requires you to list each account separately, including the account number, the country where it is held, the type of account (bank, brokerage, retirement), and the maximum value during the year. You do not need to attach bank statements, but you must keep them for your records in case of an audit.

FinCEN Form 114 (FBAR) and how to file it

The FBAR is filed directly with FinCEN, not with the IRS, even though it is due on the same date as your tax return. You file it electronically through FinCEN's BSA E-Filing System at bsaefiling.fincen.gov. Paper filing is no longer accepted.

The FBAR threshold is simpler than Form 8938: you must file if you have foreign financial accounts totaling more than $10,000 at any point during the calendar year. Unlike Form 8938, the FBAR applies to all U.S. persons regardless of where they live, and the threshold does not change based on filing status.

To file, you will need to create a login at the BSA E-Filing System using your Social Security Number or Individual Taxpayer Identification Number (ITIN). The form asks for the same basic information as Form 8938 — account numbers, country, account type, and maximum balance — but in a different format. The FBAR is due April 15 with an automatic extension to October 15 if you request it before the April deadline.

What counts as a foreign financial account

A foreign financial account is any account you own or have a financial interest in that is held at a financial institution outside the United States. This includes bank accounts, savings accounts, checking accounts, money market accounts, certificates of deposit, brokerage accounts, mutual fund accounts, and retirement accounts held abroad.

You must report accounts in your sole name, accounts you own jointly with others, and accounts in someone else's name if you have signatory authority or control over the account. If your spouse has a foreign account in their name only and you have no access to it, you do not report it on your FBAR, but your spouse must report it on theirs.

You do not report foreign credit card accounts, foreign insurance policies, or foreign retirement accounts that are already reported to the IRS through other means (such as Form 3520 for foreign trusts). You also do not report accounts held by a U.S. corporation or partnership that you own, though you may have other reporting obligations for those entities.

Deadlines and extensions for both forms

Both Form 8938 and the FBAR are due by April 15 of the year following the tax year. If you file an extension for your tax return using Form 4868, your Form 8938 deadline extends to October 15. The FBAR has an automatic extension to October 15 if you request it through the BSA E-Filing System before April 15.

If you miss the April 15 deadline without requesting an extension, you can still file late, but penalties apply. For the FBAR, the penalty for a non-willful violation (one you did not intentionally hide) is up to $10,000 per year. For willful violations, the penalty is the greater of $100,000 or 50 percent of the account balance at the time of the violation.

If you discover you missed reporting in a prior year, you can file an amended return for Form 8938 using Form 1040-X and file a late FBAR. The IRS has a Streamlined Filing Compliance Procedures program that allows you to file up to six years of back returns and FBARs with reduced penalties if you did not willfully fail to report. You must file all back returns and FBARs at the same time to use this program.

Reporting accounts held jointly with a spouse

If you are married and file jointly, you report the combined total of all foreign accounts on Form 8938. Both spouses sign the return, and the form shows the combined maximum value of all accounts you both own or control.

For the FBAR, the rule is different. Each spouse files their own FBAR for accounts in their name or accounts they control. If you hold an account jointly with your spouse, you each file an FBAR reporting the full value of that account, not half. This means a joint account of $50,000 appears as $50,000 on both spouses' FBARs, not $25,000 on each.

If one spouse is not a U.S. citizen or resident alien, they do not file an FBAR for their own accounts, but you must still report any accounts you control or have signatory authority over, even if your spouse is the account owner.

What to do if you missed the deadline or did not file

If you did not file Form 8938 or the FBAR in prior years, you have options depending on how long ago the deadline was and whether the failure was intentional. The safest approach is to file the missing forms as soon as you realize the error, even if the deadline has passed.

For Form 8938, file an amended return using Form 1040-X for each year you missed. Attach the Form 8938 to the amended return. The IRS will assess penalties, but filing voluntarily before an audit is discovered usually results in lower penalties than being caught during an examination.

For the FBAR, file through the BSA E-Filing System even though it is late. You can also request reasonable cause relief from penalties by submitting Form 14653 (Request for Reasonable Cause Relief and Miscellaneous Offshore Penalty Relief) along with a written explanation of why you did not file. Common reasons that may have access to include relying on a tax professional's advice, language barriers, or not knowing the requirement applied to you.

If you have multiple years of unfiled FBARs and Forms 8938, the IRS Streamlined Filing Compliance Procedures may reduce your penalties significantly. This program requires you to file six years of back returns and FBARs, pay back taxes with interest, and pay a one-time penalty of 5 percent of the highest foreign account balance during the six-year period (or 20 percent if you are considered to have willfully failed to report).

How to gather the information you need

To complete Form 8938 or the FBAR, you will need the account number, the name and address of the financial institution, the country where the account is held, the type of account, and the maximum balance during the year. Contact your foreign bank or financial institution directly to request this information if you do not have it.

Many foreign banks provide year-end statements that show the maximum balance, or you can calculate it by reviewing monthly statements. If the account is held in a currency other than U.S. dollars, convert the maximum balance to dollars using the exchange rate on the date the balance was highest, or use the average exchange rate for the year — the IRS accepts either method as long as you are consistent.

Keep copies of all bank statements, account confirmations, and correspondence with the financial institution for at least three years after you file. The IRS can audit back six years if they suspect unreported income, and FinCEN can request documentation at any time.

Frequently Asked Questions

Do I have to file both Form 8938 and the FBAR, or just one?

You must file both if you meet the threshold for each. Form 8938 goes with your tax return to the IRS; the FBAR goes to FinCEN separately. They ask for similar information but serve different purposes — the IRS uses Form 8938 to track income and assets, while FinCEN uses the FBAR to monitor money laundering and terrorist financing.

What if my foreign account is in my spouse's name but I have access to it?

If you have signatory authority or control over the account, you must report it on your FBAR even if your spouse's name is on it. For Form 8938, married couples filing jointly report all accounts either spouse controls, so it appears on your joint return regardless of whose name is on the account.

Can I file the FBAR on paper instead of electronically?

No. The IRS stopped accepting paper FBARs in 2016. You must file through FinCEN's BSA E-Filing System at bsaefiling.fincen.gov using your Social Security Number or ITIN. If you have trouble with the system, contact FinCEN's BSA Help Line at 1-800-949-2732.

What happens if I file late but before an audit?

Filing voluntarily before the IRS or FinCEN contacts you usually results in lower penalties than being caught during an examination. You will still owe back taxes and interest, but the failure-to-file penalty is often reduced or waived if you can show reasonable cause — such as relying on incorrect professional advice or not knowing the requirement applied to you.

Do I report accounts I closed during the year?

Yes. If an account was open at any point during the calendar year and the maximum balance exceeded the threshold, you must report it on both Form 8938 and the FBAR, even if you closed it before year-end. Report the account number, the country, the type, and the maximum balance while it was open.