Do you hold a bank account abroad, a life insurance policy, or a retirement savings plan outside the United States? Then you may be subject to the FBAR — the Report of Foreign Bank and Financial Accounts — without even knowing it. Every year, thousands of Americans discover this federal reporting obligation imposed by the Financial Crimes Enforcement Network (FinCEN) too late, exposing themselves to civil FBAR penalties exceeding $10,000 per unfiled form. In cases of willful violations, the bill climbs to $100,000 or 50% of the account’s value. The FBAR deadline is set for April 15, with an automatic extension to October 15, but time works against you: each year without tax compliance worsens your situation. Whether you are an individual, a spouse filing jointly, or an agent acting on behalf of an entity or trust, this complete guide walks you through every step — from the reporting threshold to remediation procedures — to fulfill this obligation safely.
Key takeaway: The FBAR applies to any U.S. person holding foreign financial accounts whose aggregate value exceeds $10,000 at any point during the calendar year. The filing deadline is April 15, with an automatic extension to October 15.
Table of Contents
What Is the FBAR (FinCEN Form 114)?
The FBAR, officially titled FinCEN Form 114, is an information report filed with FinCEN (Financial Crimes Enforcement Network), a bureau of the U.S. Department of the Treasury. It is not a tax return per se: the FBAR falls under the Bank Secrecy Act (BSA) of 1970, not the Internal Revenue Code. The purpose of the FBAR is to enable the federal government to track foreign financial assets held abroad by U.S. taxpayers, as part of efforts to combat tax evasion and money laundering.
FBAR, FATCA, and Form 8938: What Are the Differences?
Confusion between these programs is common. The FBAR (FinCEN Form 114) is filed with FinCEN under the BSA. Form 8938, on the other hand, falls under FATCA (Foreign Account Tax Compliance Act) and is filed with the IRS as an attachment to your tax return. Both forms can apply simultaneously to the same taxpayer, but with different thresholds and scopes.
| Criteria | FBAR (FinCEN Form 114) | Form 8938 (FATCA) |
|---|---|---|
| Receiving agency | FinCEN | IRS |
| Legal basis | Bank Secrecy Act | Internal Revenue Code |
| Threshold (U.S. resident) | $10,000 aggregate | $50,000 (year-end) / $75,000 (during the year) |
| Threshold (non-U.S. resident) | $10,000 aggregate | $200,000 (year-end) / $300,000 (during the year) |
| Scope | Financial accounts only | Foreign financial assets (accounts + other assets) |
| Filing method | BSA E-Filing System | Attached to Form 1040 |
Who Must File an FBAR?
The FBAR filing requirements rest on two cumulative conditions: being a “U.S. person” and having a financial interest or signature authority over foreign financial accounts whose aggregate value exceeds $10,000.
The Definition of “U.S. Person”
The following are considered U.S. persons under the FBAR: U.S. citizens regardless of where they live, Green Card holders, individuals who meet the substantial presence test, and U.S. entities (LLCs, C-Corps, partnerships, trusts). An American living in France remains fully subject to FBAR requirements, even if they no longer earn any U.S.-source income.
Financial Interest or Signature Authority
Two distinct situations trigger the obligation to file an FBAR. “Financial interest” covers direct or indirect ownership of an account, or ownership of more than 50% of an entity that holds the account. “Signature authority” applies to any person authorized to control the disposition of funds in an account, even without being its owner. An American executive who is a signatory on the bank accounts of a French subsidiary may therefore be personally subject to FBAR filing.
Which Accounts Must Be Reported?
Foreign Financial Accounts Covered by the FBAR
The FBAR covers any account held at foreign financial institutions located outside the United States: checking accounts, savings accounts, securities accounts, mutual funds, and brokerage accounts. The currency of the account is irrelevant: a dollar-denominated account held at a French bank is reportable under the report of foreign bank accounts rules.
Focus: French Financial Products That Must Be Reported
For an American living in France, several products often perceived as simple “savings booklets” fall within the scope of FBAR filing:
- Livret A and LDDS: reportable, even though interest is tax-exempt in France.
- PEL / CEL: reportable as savings accounts.
- Life insurance (assurance-vie): reportable — it is considered a financial account under the BSA.
- PEA (equity savings plan): the associated securities account is reportable.
- PayPal, Wise, Revolut accounts domiciled in Europe: reportable if the institution is located outside the U.S.
Good to know: Interest earned on a Livret A, while tax-exempt in France, remains taxable in the United States. This is one of the most common pitfalls for Americans living in France.
The $10,000 Threshold: How to Calculate It
The threshold applies to the maximum aggregate value of all foreign financial accounts during the calendar year. If, at any point during the year, the sum of the maximum balances across all your accounts exceeds $10,000, you must report all accounts — including those with individually modest balances. The exchange rate to use for FBAR filing is the U.S. Treasury Department rate as of December 31 of the relevant year.
How to File FBAR
Understanding how to file FBAR is essential for any affected taxpayer. FinCEN Form 114 must be filed exclusively online through the BSA E-Filing System operated by FinCEN. No paper filing is accepted. The filer must provide for each account: the name and address of the financial institution, the account number, the type of account, and the maximum balance for the year converted into U.S. dollars.
An authorized third party — a CPA or tax attorney — can file the FBAR on behalf of the taxpayer, provided they have authorization through FinCEN Report 114a. For expatriates in France unfamiliar with the BSA E-Filing system, this delegation significantly simplifies the process.
Need help filing your FBAR or resolving a past compliance issue?
Deadlines and Extensions
The FBAR deadline is set for April 15 of each year for the previous calendar year. Taxpayers who miss this date receive an automatic extension to October 15, with no additional form required. For Americans who are tax residents in France, it is recommended to coordinate the FBAR filing with the French income tax return (May–June) and Form 3916-bis for reporting foreign accounts to the French tax authorities.
Penalties for Non-Compliance
FBAR penalties vary significantly depending on whether the violation was intentional or not.
Non-Willful Violations
The penalty can reach $10,000 per unfiled form per year. The Supreme Court clarified in Bittner v. United States (2023) that this penalty applies per form, not per omitted account, which reduces exposure for taxpayers holding numerous accounts.
Willful Violations
In cases of deliberate non-compliance, the penalty can reach $100,000 or 50% of the account’s maximum balance (whichever is greater), per account per year. Criminal prosecution is also possible, with fines up to $500,000 and imprisonment of up to 10 years.
| Type of violation | Maximum penalty | Criminal risk |
|---|---|---|
| Non-willful | $10,000 per form/year | No |
| Willful | $100,000 or 50% of balance per account/year | Yes (up to 10 years) |
The “reasonable cause” defense may allow taxpayers to avoid non-willful penalties if they can demonstrate a reasonable explanation for their failure to file. Engaging a qualified professional is strongly recommended.
FBAR and Taxes: Is There an Additional Tax to Pay?
Filing the FBAR does not generate any tax by itself. It is an information report designed to ensure tax compliance, not a tax return. However, income generated by foreign accounts (interest, dividends, capital gains) must be reported on Form 1040 and may be taxable in the U.S. The Franco-American tax treaty generally helps avoid double taxation through the Foreign Tax Credit mechanism (Form 1116).
How to Resolve an Unfiled FBAR Situation
Taxpayers with a delinquent FBAR have several paths to remediation. Americans residing outside the United States, including in France, can use the Streamlined Foreign Offshore Procedure. This voluntary disclosure program allows filing the last 3 tax returns and the last 6 FBARs, with no FBAR penalty for non-residents, provided the taxpayer certifies the non-willful nature of the failure (Form 14653). For U.S. residents, the Streamlined Domestic Offshore Procedure (Form 14654) applies with a reduced penalty of 5% of the maximum value of undisclosed accounts.
Why Trust Expand CPA with Your FBAR Filing?
Expand CPA, an international accounting firm with offices in Paris and Miami, has a bilingual Franco-American team specializing in supporting taxpayers subject to both tax systems. Our experts handle FBAR filing, Form 8938, the 1040 return, and French tax declarations. In cases of late or missed filings, we manage the remediation process through the Streamlined Procedure. We also assist with ITIN applications and questions related to personal taxation in France.
American expatriate in France, entrepreneur, or retiree subject to dual taxation?
FAQ Your Questions About the FBAR
Does the FBAR only apply to bank accounts?
No. The FBAR covers any financial account held at foreign financial institutions, including securities accounts, investment funds, brokerage accounts, and certain savings products.
Do I need to file an FBAR if no tax is due?
Yes. The FBAR is an information reporting obligation independent of any tax liability. Even if you owe no tax to the U.S., the form must be filed once the $10,000 threshold is met.
What happens if I forgot to file FBAR in previous years?
You can resolve your situation through the delinquent FBAR submission procedure or the Streamlined Procedure, depending on your profile. It is strongly recommended to seek professional assistance to minimize the risk of penalties.
Does FBAR apply to business accounts abroad?
Yes. Accounts held by a U.S. entity (LLC, C-Corp) at foreign financial institutions are reportable. An American executive with signature authority over a French subsidiary’s accounts may also be required to report them on their personal FBAR.
Is FBAR the same as FATCA?
No. The FBAR (FinCEN Form 114) falls under the Bank Secrecy Act and is filed with FinCEN. FATCA (Form 8938) falls under the Internal Revenue Code and is filed with the IRS. Both may apply simultaneously but cover different scopes and thresholds.
What is the FBAR penalty for non-willful violations?
Since the Bittner v. United States (2023) ruling, the penalty is capped at $10,000 per unfiled form per year. Before this decision, some courts applied the penalty per account, which could result in significantly higher amounts.
Must joint accounts be reported by both account holders?
Yes. Each U.S. person who is a joint holder must report the full balance on their individual FBAR.
How long must FBAR-related documents be retained?
Supporting documents (account statements, maximum balances, copy of the filed FBAR) must be retained for 5 years from the filing date.
