1) FBAR basics: who must file & what counts
The FBAR is a Treasury/FinCEN report for U.S. persons who had a financial interest in or signature authority over foreign financial accounts where the aggregate maximum value exceeded $10,000 at any time during the calendar year.
- U.S. persons: U.S. citizens, green‑card holders, or U.S. tax residents.
- Reportable accounts: checking/savings, term deposits, brokerage; joint accounts; corporate/trust accounts you control; some pensions/e‑money (facts-and-circumstances).
- Separate from IRS tax return: FBAR is filed electronically via the FinCEN BSA E‑Filing system.
2) Deadlines & how many years to file
- Due date: April 15 with an automatic extension to October 15.
- Look‑back: Keep the most recent 6 years current (standard practice for late clean‑up).
3) Step‑by‑step: DIY FBAR filing
- Inventory your foreign accounts (bank name & address, account number, country, account type).
- Find the year’s maximum balance for each account (not average).
- Convert to USD using U.S. Treasury year‑end exchange rates; document your calculations.
- Prepare a simple table (spreadsheet) with one row per account and columns for type, country, institution address, account number, max USD balance.
- File via FinCEN BSA E‑Filing: start Form 114, enter personal info, then add each account’s details. Save draft before submitting.
- Review & submit: double‑check names/addresses/balances; submit and save both the confirmation number and the acknowledgment PDF.
4) Missed FBARs? Your late‑filing options
Delinquent FBAR Submission Procedures
For non‑willful late filers whose income tax returns are otherwise correct and who have not been contacted by IRS/FinCEN. File up to 6 years through BSA E‑Filing and include a short late‑filing explanation; penalties are often waived.
Streamlined Filing Compliance Procedures
For non‑willful cases needing tax return fixes (e.g., unreported foreign income). Typically: 6 years of FBARs + 3 years of amended returns, tax + interest, and a non‑willful certification.
5) Reasonable Cause (non‑willful) statement — short template
To whom it may concern: I am submitting late FBARs for [years]. I did not previously file because I was unaware of the FBAR requirement. Once I learned of the rules, I gathered account records, calculated maximum balances, and am filing all missing reports. My income tax returns correctly reported all income to the best of my knowledge (or: I filed amended returns under the Streamlined procedures). I regret the oversight and will comply with FBAR requirements going forward. Sincerely, [Name, SSN/ITIN, Date]
6) One‑page checklist
- [ ] U.S. person test met; combined foreign max > $10,000.
- [ ] Accounts list & documents gathered; max balances determined.
- [ ] USD conversion done with Treasury rates; calculations saved.
- [ ] FinCEN Form 114 prepared; late‑filing reason added (if any).
- [ ] Submitted; confirmation number & PDFs archived (keep 5–6 years).
7) FAQ
How many years do I file if I missed FBARs?
Generally six years. Streamlined usually pairs that with three years of amended income tax returns where needed.
Do I need a lawyer?
Not for straightforward non‑willful cases. Consider counsel for willfulness concerns, large balances, prior IRS contact, or complex entities/trusts.
Does FBAR include crypto?
Guidance evolves. Custodial accounts at foreign exchanges may be reportable; non‑custodial wallets usually aren’t “accounts.” Assess facts carefully.
8) Resources
- FinCEN BSA E‑Filing System — Form 114 (FBAR)
- U.S. Treasury year‑end exchange rates
- IRS: Delinquent FBAR Submission Procedures
- IRS: Streamlined Filing Compliance Procedures