What are the penalties for not filing an FBAR?

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

Who has to file an FBAR?

Any U.S. person (citizen, resident, or domestic entity) with signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during the calendar year. The threshold is aggregate, not per account.

What are the FBAR penalties?

Non-willful: up to $10,000 (inflation-adjusted) per violation. Willful: the greater of $100,000 (inflation-adjusted) or 50% of the account balance, per year. The Supreme Court's Bittner decision capped non-willful penalties per form rather than per account — but the willful exposure is unchanged.

How is Form 8938 different from the FBAR?

Form 8938 is filed with your 1040 under FATCA and has higher thresholds. The FBAR (FinCEN 114) is filed separately with FinCEN. Many taxpayers must file both. The forms overlap but are not interchangeable.

What are the penalties for not filing an FBAR?

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

Who has to file an FBAR?

Any U.S. person (citizen, resident, or domestic entity) with signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during the calendar year. The threshold is aggregate, not per account.

What are the FBAR penalties?

Non-willful: up to $10,000 (inflation-adjusted) per violation. Willful: the greater of $100,000 (inflation-adjusted) or 50% of the account balance, per year. The Supreme Court's Bittner decision capped non-willful penalties per form rather than per account — but the willful exposure is unchanged.

How is Form 8938 different from the FBAR?

Form 8938 is filed with your 1040 under FATCA and has higher thresholds. The FBAR (FinCEN 114) is filed separately with FinCEN. Many taxpayers must file both. The forms overlap but are not interchangeable.

You Are Not The First. You Will Not Be The Last.

Foreign Bank Account Reporting (FBAR)

Q: What is an FBAR and who must file?

The Foreign Bank Account Report (FinCEN Form 114) must be filed by any U.S. person with a financial interest in or signature authority over foreign accounts exceeding $10,000 in aggregate at any time during the year.

Compliance with FBAR requirements and voluntary disclosure for unreported accounts.

Reporting Threshold$10,000 aggregate

Max Penalty (Willful)$100,000 or 50% of balance

Filing DeadlineApril 15 (auto-extension to Oct 15)

Disclosure ProgramsStreamlined, VDP

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One honest conversation. You'll hang up knowing exactly what the IRS can — and can't — do to you, and how we'll stop them.

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Legally reviewed byGregory McCauley Jr., Esq.

Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court

Last reviewedDecember 22, 2025

What This Actually Is — And How We End It

The Truth About Foreign Bank Account Reporting (FBAR) — And What To Do Right Now

If you have foreign financial accounts exceeding $10,000 in aggregate value at any point during the year, you're required to file an FBAR (FinCEN Form 114). Failure to file can result in penalties of up to $100,000 per violation — or 50% of the account balance.

McCauley Law Offices helps taxpayers come into compliance through voluntary disclosure programs and streamlined filing procedures, minimizing penalties and avoiding criminal prosecution.

FBAR penalties are per account, per year. If you have 3 unreported accounts over 5 years, you could face 15 separate penalties. For willful violations, each penalty can be $100,000 or 50% of the account balance — whichever is greater.

Who Must File an FBAR?

You must file if you're a U.S. person (citizen, resident, or entity) with a financial interest in or signature authority over foreign accounts with an aggregate value exceeding $10,000 at any point during the calendar year. This includes:

Bank accounts, savings accounts, and checking accounts
Securities and brokerage accounts
Mutual funds and certain insurance policies with cash value
Accounts where you have signature authority even if you don't own them

Compliance Programs Available

Streamlined Domestic Offshore Procedures

For U.S. residents who were non-willful — you didn't know about the filing requirement. Penalty is 5% of the highest aggregate balance. This is the most common path to compliance.

Streamlined Foreign Offshore Procedures

For U.S. taxpayers living abroad who were non-willful. No penalty — just file amended returns and delinquent FBARs.

IRS Voluntary Disclosure Practice

For taxpayers with willful violations. Higher penalties but eliminates criminal prosecution risk. Required when you can't certify non-willfulness.

The distinction between "willful" and "non-willful" is worth hundreds of thousands of dollars. We carefully evaluate your facts and advise which disclosure program is appropriate — and when possible, we build the strongest non-willfulness certification to keep you in the streamlined program.

You Are Not Alone

People Just Like You Have Sat In This Exact Chair

They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.

Unreported Inherited Account

A taxpayer inherited a Swiss bank account from a relative and didn't know about FBAR requirements. We used the Streamlined Domestic Offshore Procedures to bring them into compliance with minimal penalties.

Streamlined Domestic Filing — $0 Penalty

A dual citizen in Chester County had 6 years of unreported foreign accounts totaling $480,000. We filed under the Streamlined Domestic Offshore Procedures, paid the 5% miscellaneous offshore penalty, and avoided FBAR penalties entirely.

Non-Willful FBAR Penalty Reduced 80%

A Wilmington client faced proposed non-willful FBAR penalties of $94,000. We presented mitigation under IRM 4.26.16, secured penalty reduction to $19,000, and closed the exam without further escalation.

Every Day You Wait, The IRS Wins A Little More.

Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.

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From Panic To Peace Of Mind

Exactly How We Take This Off Your Shoulders

The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.

1
Inventory every foreign account and signatory authority
Personal, business, signatory-only — we identify everything that triggers reporting before deciding the path.
2
Choose the disclosure path
Streamlined Domestic, Streamlined Foreign, Delinquent FBAR procedures, or formal voluntary disclosure — each has different costs and requirements.
3
Reconstruct historical account values
Highest balance per account per year in U.S. dollars at year-end Treasury rates — the IRS bounces filings that get this wrong.
4
Prepare and file the package
Amended 1040s, FinCEN 114, Form 8938, and the streamlined certification — assembled and submitted together.
5
Defend any examination
If the IRS opens an exam, we represent through penalty assertion, mitigation, and Appeals.

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Real results from real clients

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

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"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."

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"I hadn't filed taxes in 5 years and was terrified. McCauley Law handled everything — filed all my returns, negotiated with the IRS, and got my penalties reduced by 80%."

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