What is FBAR?

A beginner’s guide to understanding the FBAR filing requirement.

1. Definition

FBAR (Report of Foreign Bank and Financial Accounts) requires U.S. persons to report foreign financial accounts when the aggregate value exceeded $10,000 at any time during the calendar year.

2. Who Must File

  • U.S. citizens and resident aliens
  • Entities (corporations, partnerships, LLCs, trusts) formed under U.S. laws
  • Signature authority holders (no financial interest but authority exists)

3. Typical Reportable Accounts

  • Bank, savings, time deposits, foreign brokerage accounts
  • Mutual funds/pooled funds with a regular NAV
  • Certain online wallets/exchanges depending on custody and account nature

4. Penalties (Overview)

Non-willful vs willful, recordkeeping expectations, and practical mitigation paths.