FBAR Filing Guide: Reporting Foreign Bank Accounts
If you have bank accounts outside the US worth over $10,000, you must file an FBAR. Here's how to do it as a newcomer.
If you're a newcomer with bank accounts in your home country, you may be required to report them to the US government. It's called an FBAR (Foreign Bank Account Report), and ignoring it can lead to massive penalties.
Who Must File an FBAR?
You must file if:
- You are a US person (includes resident aliens, green card holders, and those who pass the Substantial Presence Test)
- You had financial interest in or signature authority over foreign financial accounts
- The aggregate value of all foreign accounts exceeded $10,000 at any point during the year
Example: You have $6,000 in a Korean bank and $5,000 in a Japanese bank. That's $11,000 total — you must file, even though neither account alone exceeds $10,000.
Who Does NOT Need to File?
- Non-resident aliens — Most J1 visa holders in their first 2 years and F1 students in their first 5 years
- Anyone whose foreign accounts never exceeded $10,000 combined during the year
What Accounts Must Be Reported?
- Bank accounts (checking, savings)
- Investment accounts
- Mutual funds
- Retirement accounts in your home country
- Any account you have signature authority over (even if it's not yours)
How to File
- Go to BSA E-Filing
- Select "File FBAR" (FinCEN Report 114)
- Enter your personal information
- List each foreign account with:
- Bank name and address
- Account number
- Maximum balance during the year
- Type of account
- Submit electronically — no paper filing allowed
Important Deadlines
- Due date: April 15
- Automatic extension: October 15 (no form needed)
- First-time filers get an automatic extension to October 15
Penalties for Not Filing
This is where it gets serious:
| Violation | Penalty |
|---|---|
| Non-willful (you didn't know) | Up to $10,000 per account per year |
| Willful (you knew and didn't file) | Up to $100,000 or 50% of account balance |
| Criminal penalties | Up to $250,000 fine and 5 years in prison |
The IRS has been increasingly aggressive about FBAR enforcement. Don't skip this.
FBAR vs FATCA (Form 8938)
These are two different requirements:
| Feature | FBAR (FinCEN 114) | FATCA (Form 8938) |
|---|---|---|
| Threshold | $10,000 | $50,000 (single) / $100,000 (married) |
| Filed with | FinCEN (separate website) | IRS (with tax return) |
| Due date | April 15 (ext. Oct 15) | With tax return |
| Penalty | Up to $100,000+ | Up to $50,000 |
You may need to file both if your accounts are large enough.
Tips for Newcomers
- Track your home country accounts — Even if you're not adding money, the balance counts
- Convert to USD using the Treasury rate — Use the yearly average exchange rate
- Keep records for 5 years — Bank statements, account records, and filed FBARs
- When in doubt, file — There's no penalty for filing when you didn't need to, but huge penalties for not filing when you should have
Bottom Line
If you have foreign accounts totaling more than $10,000, file the FBAR. It takes 15 minutes online and costs nothing. The penalties for not filing are disproportionately severe. Don't let this catch you off guard.