You must report foreign bank accounts over $10,000 to the IRS using FinCEN Form 114

If you have a foreign bank account, brokerage account, or other financial account outside the United States with a combined balance over $10,000 at any point during the year, you are required to file FinCEN Form 114, also called the Foreign Bank Account Report (FBAR). This form goes to the Financial Crimes Enforcement Network, not directly to the IRS, though the two agencies share the information. The deadline is April 15 of the following year, with an automatic extension to October 15 if you file your tax return on extension.

You also may need to file Form 8938 with your tax return if your foreign financial assets exceed certain thresholds — these thresholds vary depending on your filing status and whether you live in the United States or abroad. Form 8938 is filed with your 1040 and covers the same accounts as the FBAR, but with different dollar limits. Both forms can be required in the same year; filing one does not replace the other.

The $10,000 threshold for the FBAR is a combined total across all your foreign accounts. If you have five accounts with $2,500 each, you must file. The threshold is measured at any point during the calendar year — you do not need to average the balances. A single day when your accounts total more than $10,000 triggers the filing requirement.

Key Takeaways

  • FinCEN Form 114 (FBAR) must be filed if you have foreign financial accounts totaling more than $10,000 at any time during the year, and the deadline is October 15 with no extension beyond that date.
  • Form 8938 is filed with your tax return and has different dollar thresholds than the FBAR, so you may need to file both forms in the same year.
  • Foreign accounts include bank accounts, investment accounts, retirement accounts held abroad, and certain insurance products, but not accounts you own through a U.S. corporation.
  • You must list the maximum balance of each account during the year, not the average or year-end balance, and include accounts in your spouse's name if you have signature authority.
  • Failure to file the FBAR can result in civil penalties of $10,000 per violation, or criminal penalties up to $250,000 and five years in prison for willful violations.

Which accounts count toward the $10,000 threshold

The FBAR requires you to report any financial account you have signature authority over, meaning you can control the account or withdraw money from it — even if someone else owns it. This includes bank accounts, savings accounts, money market accounts, brokerage accounts, mutual fund accounts, and retirement accounts held outside the United States. It also includes certain insurance products with a cash value component, such as whole life insurance policies or annuities issued by foreign insurers.

Accounts you do not have to report include U.S. accounts held by a foreign corporation you own, accounts held in the name of a U.S. corporation (even if it is foreign-owned), and accounts held by a foreign trust if you are not a beneficiary with access to the funds. If your spouse has a foreign account and you have no access to it and cannot sign on it, you do not report it on your FBAR — your spouse files their own.

Joint accounts with your spouse count as one account for the $10,000 test. If you and your spouse each have separate accounts in the same country, you add both balances together. The key question is always: can you access it or control it? If yes, it counts.

How to file FinCEN Form 114 (FBAR)

FinCEN Form 114 is filed electronically through the Financial Crimes Enforcement Network's BSA E-Filing System at bsaefiling.fincen.gov. You create an account, log in, and submit the form online. Paper filing is no longer accepted. You will need to provide your name, address, date of birth, and tax identification number (Social Security number or ITIN), plus the same information for each foreign financial institution where you hold an account.

For each account, you report the name of the bank or institution, the account number, the country where it is located, the type of account (checking, savings, investment, retirement, etc.), and the maximum balance during the year. You do not report the current balance or the year-end balance — only the highest balance the account reached at any point during the calendar year. If you had $5,000 in January, $15,000 in June, and $8,000 in December, you report $15,000.

The deadline to file is October 15 with no extension available. If you miss this date, you can still file late, but penalties apply immediately. The IRS and FinCEN do not grant extensions to the FBAR deadline the way they do for tax returns. If your tax return is on extension to October 15, your FBAR is still due by October 15 — they are separate deadlines.

Form 8938 and how it differs from the FBAR

Form 8938, called the Statement of Specified Foreign Financial Assets, is filed with your Form 1040 tax return. It covers many of the same accounts as the FBAR but has higher dollar thresholds and is required only if you meet those thresholds. For a single filer living in the United States, the threshold is $200,000 on the last day of the year or $300,000 at any point during the year. For married filing jointly, the thresholds are $400,000 and $600,000. If you live abroad, the thresholds are higher: $400,000 and $600,000 for single filers, and $600,000 and $900,000 for married filing jointly.

Form 8938 is filed as part of your tax return, so it uses the same deadline as your return — April 15, or October 15 if you file on extension. The FBAR has its own October 15 deadline that does not move. You can file both forms in the same year; they serve different purposes and are not duplicative in the eyes of the IRS and FinCEN.

If you are below the Form 8938 threshold but above the $10,000 FBAR threshold, you file only the FBAR. If you are above both thresholds, you file both forms. The FBAR is the more fundamental requirement because it has the lower threshold and applies to more people.

Reporting accounts held jointly with a non-spouse

If you hold a foreign account jointly with someone other than your spouse — a business partner, adult child, or friend — you still report the full account balance on your FBAR, not just your percentage of ownership. The rule is based on access and control, not ownership percentage. If you can withdraw the entire balance, you report the entire balance.

The other person with access to the same account must also file their own FBAR reporting the same account. This means the same account appears on two separate FBARs. This is correct and expected; the IRS and FinCEN know that joint accounts will be reported twice.

What happens if you miss the deadline or fail to file

If you do not file the FBAR by October 15, the IRS can assess a civil penalty of $10,000 per violation. The IRS interprets "per violation" to mean per account per year, so if you had three foreign accounts and did not file for two years, the potential penalty is $60,000. The IRS may reduce this penalty if you can show reasonable cause — for example, that you were unaware of the requirement or that a tax professional gave you incorrect advice.

If the IRS determines that your failure to file was willful — meaning you knew about the requirement and deliberately did not comply — the penalty is much higher: up to $100,000 or 50 percent of the account balance, whichever is greater, for each year of violation. Criminal prosecution is also possible, with penalties up to $250,000 and up to five years in prison.

If you realize you missed filing the FBAR in prior years, you can file late. The IRS has a Streamlined Filing Compliance Procedures program that allows U.S. citizens and residents to file back FBARs and amended tax returns with reduced penalties if you meet certain conditions — primarily that you did not know about the requirement and that you are now bringing yourself into compliance. You should consult a tax professional or attorney before filing late FBARs, because the process has specific requirements and the wrong approach can trigger higher penalties.

Reporting foreign retirement accounts and pensions

Foreign retirement accounts, including IRAs held at foreign banks, pension accounts, and deferred compensation plans offered by foreign employers, must be reported on the FBAR if you have signature authority and the account balance exceeds $10,000. The same rule applies: report the maximum balance during the year, not the current balance.

Some foreign retirement accounts may also be reported on Form 3520 or Form 3520-A if they are held in a foreign trust structure, or on Form 5471 if held through a foreign corporation. These forms have different purposes and different deadlines than the FBAR. A foreign retirement account can trigger multiple reporting requirements at the same time. If you have a pension or retirement account abroad, consult a tax professional to determine which forms you need to file.

Frequently Asked Questions

Do I have to report a foreign account if my spouse is a U.S. citizen and I am not?

If you are a resident alien (green card holder) or nonresident alien, you may still be required to file the FBAR if you have signature authority over a foreign account exceeding $10,000. Nonresident aliens have different rules and thresholds for Form 8938, but the FBAR applies to anyone with a foreign account and U.S. tax filing obligations. Consult a tax professional about your specific status.

What if I inherited a foreign bank account from a relative?

If you inherited the account and now have access to it, you must report it on the FBAR if the balance exceeds $10,000. The year you inherit it, you report the maximum balance during that year. You continue reporting it in future years as long as you maintain access and the balance stays above $10,000. Inherited accounts do not have a separate exemption.

Can I file the FBAR on paper instead of electronically?

No. FinCEN stopped accepting paper FBARs and now requires electronic filing through the BSA E-Filing System. If you cannot file electronically yourself, you can authorize a tax professional or attorney to file on your behalf using their login credentials.

If I file my tax return late, do I get an extension on the FBAR deadline too?

No. The FBAR deadline is always October 15, regardless of when you file your tax return. If your tax return is on extension to October 15, both deadlines fall on the same day, but the FBAR does not extend beyond October 15 under any circumstances.

Do I report the account in U.S. dollars or in the foreign currency?

You report the maximum balance in U.S. dollars. If your account is in euros or another currency, convert the balance to U.S. dollars using the exchange rate on the date the maximum balance occurred. The IRS provides historical exchange rates on its website if you need them.