Question 1

What is FBAR?

Accepted Answer

FBAR (FinCEN Form 114) is a report filed with the Financial Crimes Enforcement Network disclosing foreign financial accounts. You must file if the aggregate value of all your foreign accounts exceeded $10,000 at any point during the year.

Question 2

What is the FBAR filing deadline?

Accepted Answer

FBAR is due April 15, with an automatic extension to October 15. No extension request is needed. The form is filed electronically through the BSA E-Filing System, not with your tax return.

Question 3

What is Form 8938 (FATCA)?

Accepted Answer

Form 8938 is filed with your tax return if you have specified foreign financial assets exceeding $50,000 (single) or $100,000 (MFJ) at year-end, or $75,000/$150,000 at any point during the year. It has higher thresholds than FBAR.

Question 4

What are the penalties for not filing FBAR?

Accepted Answer

Non-willful violations carry a penalty of up to $10,000 per account per year. Willful violations can result in penalties up to $100,000 or 50% of account balance (whichever is greater), plus potential criminal prosecution.

Question 5

Do I need to file both FBAR and Form 8938?

Accepted Answer

Possibly yes. FBAR and Form 8938 are separate requirements with different thresholds and different agencies. If you meet the thresholds for both, you must file both. Many NRIs with significant foreign accounts need to file both.

FBAR Threshold Checker

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