You must report foreign bank accounts to the IRS if you meet certain thresholds, and the process depends on whether you file taxes and how much money is involved

If you are a U.S. citizen, permanent resident, or resident alien, the IRS requires you to report foreign bank accounts under specific conditions. The main rule is straightforward: if you have a financial interest in or signature authority over foreign accounts that total more than $10,000 at any point during the calendar year, you must file a report called the FBAR (Foreign Bank Account Report). This is separate from your regular tax return.

The $10,000 threshold is the key number. It applies to the combined total of all your foreign accounts, not each account individually. If your accounts never exceed $10,000 together, you do not file an FBAR. If they do exceed it even once during the year, you must file.

There is also a second reporting requirement called FATCA (Foreign Account Tax Compliance Act), which applies to certain foreign financial assets beyond just bank accounts. FATCA has higher thresholds and different rules, but most people with straightforward foreign bank accounts only need to worry about the FBAR.

Key Takeaways

  • You must file an FBAR if your foreign bank accounts total more than $10,000 at any time during the year, even if the balance drops below that amount later.
  • The FBAR is filed electronically through FinCEN (Financial Crimes Enforcement Network), not through the IRS, and has a important date of April 15 with an automatic extension to October 15.
  • You file an FBAR even if you have no U.S. tax liability and even if the foreign account earned no income.
  • Failing to file an FBAR when required can result in civil penalties starting at $10,000 per violation, or criminal penalties if the failure is willful.
  • If you also owe U.S. taxes on income from the foreign account, you report that income on your regular tax return using Form 1040.

Who must file an FBAR

You must file an FBAR if you are a U.S. person — meaning a U.S. citizen, permanent resident (green card holder), or resident alien for tax purposes — and you have a financial interest in or signature authority over foreign financial accounts. "Financial interest" means you own the account or have the right to control it. "Signature authority" means you can sign checks or make withdrawals, even if you do not own the account.

The $10,000 threshold is measured on the last day of each calendar month. If your combined foreign account balances exceed $10,000 on December 31, or on the last day of any month during the year, you must file. You count the maximum balance that occurred at any point, not an average.

You must file even if the foreign account earned no interest or income, and even if you have no U.S. tax liability that year. The FBAR is a reporting requirement separate from taxes owed.

How to file an FBAR through FinCEN

The FBAR is filed electronically through the FinCEN e-filing system, which is operated by the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury. You do not file it with the IRS or include it with your tax return.

To file, you go to bsaefiling.fincen.gov and create an account. You will need your Social Security Number or Individual Taxpayer Identification Number (ITIN), your name, address, and details about each foreign account: the bank name, account number, account type (checking, savings, investment), the country where the account is held, and the maximum balance during the year. You submit the form electronically, and FinCEN sends you a confirmation.

The important date to file an FBAR is April 15 of the year following the year you are reporting. For example, accounts held during 2024 are reported by April 15, 2025. There is an automatic extension to October 15 if you request it, but you must request it before the April 15 important date.

What counts as a foreign account

A foreign account is any financial account held at a bank, credit union, investment firm, or other financial institution outside the United States. This includes checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), brokerage accounts, and retirement accounts held abroad.

Some accounts do not count toward the $10,000 threshold. These include accounts held in the name of a U.S. business, accounts at U.S. military banking facilities overseas, and certain retirement accounts established under foreign law. If you are unsure whether a specific account counts, the safest approach is to include it in your calculation.

If you have a joint account with a spouse or another person, you count the full balance, not just your share. If you have signature authority over an account you do not own — for example, you are a power of attorney for a parent's account — you must report it.

Reporting foreign income on your tax return

If your foreign bank account earned interest or other income, you must report that income on your U.S. tax return. You report it on Form 1040, the main individual income tax form, on the line for interest income or other income depending on the type.

You may also be required to file Form 8938 (Statement of Specified Foreign Financial Assets) if your foreign financial assets exceed certain thresholds. These thresholds are higher than the FBAR threshold and depend on your filing status and whether you live in the United States. For a single filer living in the U.S., the threshold is $200,000 on the last day of the year or $300,000 at any point during the year. If you file an FBAR, you may also need to file Form 8938, but not always — the rules are different.

If you earned income from the foreign account, you may also owe U.S. tax on that income. The U.S. taxes its citizens and residents on worldwide income, including income earned abroad. You may be able to reduce your U.S. tax using the Foreign Earned Income Exclusion or the Foreign Tax Credit if you paid taxes to another country, but you must still report the income.

Penalties for not filing an FBAR

The penalties for failing to file an FBAR when required are significant. If the failure is not willful, the civil penalty is at least $10,000 per violation. If the failure is willful — meaning you knew you were required to file and chose not to — the penalty can be up to $100,000 or 50 percent of the account balance, whichever is larger.

The IRS and FinCEN can assess these penalties even if you owe no taxes. The penalties explore to the failure to file, not to any tax owed. If you discover you should have filed an FBAR in prior years, you can file late, though penalties may still explore. Filing late is better than not filing at all.

If you are a U.S. citizen living abroad and have not filed FBARs in prior years, the IRS has a Streamlined Filing Compliance Procedures program that allows you to file back returns and FBARs with reduced or eliminated penalties under certain conditions. This program is available only if you did not willfully fail to file and if you meet other requirements. You should consult a tax professional if you have unfiled returns or FBARs from prior years.

When you do not need to file an FBAR

You do not file an FBAR if your foreign accounts never total more than $10,000 during the calendar year. You also do not file if you are not a U.S. person — for example, if you are a foreign national with a visa who is not considered a resident alien for tax purposes.

If you have a foreign account but no financial interest in it and no signature authority over it, you do not report it. For example, if a foreign bank holds money in trust for you but you cannot access or control it, you may not need to report it, though the rules are complex and depend on the specific arrangement.

If you are unsure whether you must file, the safest approach is to file. Filing when not required does not create a penalty, but failing to file when required does.

Frequently Asked Questions

Do I report a foreign bank account if I am married and file jointly?

Yes, if either spouse has a financial interest in or signature authority over a foreign account that, combined with the other spouse's accounts, exceeds $10,000, you must file an FBAR. You file one FBAR for the household, listing all accounts for which either spouse has authority.

What if I inherit a foreign bank account?

If you inherit a foreign account and have a financial interest in it, you must report it on an FBAR if the combined balance of all your foreign accounts exceeds $10,000. The reporting requirement begins the year you inherit the account. Inherited accounts have special rules for income tax purposes, so consult a tax professional about whether you owe U.S. tax on the inherited funds.

Can I file an FBAR if I do not file a U.S. tax return?

Yes. The FBAR is filed separately from your tax return, and you must file an FBAR even if you have no U.S. tax liability. However, if you have U.S. source income or meet other requirements, you may be required to file a tax return regardless of whether you have a foreign account.

What if I closed my foreign account during the year?

You must still file an FBAR if the account balance exceeded $10,000 at any point during the year, even if you closed it before the end of the year. Report the maximum balance that occurred while the account was open.

Do I need to report a foreign credit card or prepaid card?

A foreign credit card or prepaid card is not a bank account and does not count toward the FBAR threshold. However, if the card is linked to a foreign bank account that you control, you must report the bank account itself if it exceeds $10,000.