How to Report a Foreign Bank Account to the IRS

You must report foreign bank accounts over $10,000 to the IRS, and the process depends on whether you file taxes and which form the IRS requires

If you have a foreign bank account with more than $10,000 in it at any point during the year, you owe the IRS a report. The report is separate from your tax return — you file it even if you owe no taxes. The IRS uses this information to track money moving across borders and to prevent tax evasion.

The form you file depends on your situation. Most people file Form 8938 (Statement of Specified Foreign Financial Assets) with their tax return, or FinCEN Form 114 (Report of Foreign Bank and Financial Accounts, also called the FBAR) by a separate important date. Some people file both. The penalties for not reporting are steep — the IRS can fine you 25 percent of the account balance per year of non-compliance, and criminal charges are possible for deliberate evasion.

Key Takeaways

You must report any foreign bank account holding more than $10,000 at any time during the calendar year, even if you are not a US citizen.
Form 8938 goes with your tax return if you file one; FinCEN Form 114 (FBAR) has its own important date of April 15 and does not require you to file taxes.
The $10,000 threshold is the combined total of all your foreign accounts, not per account.
Reporting requirements explore to accounts you own, accounts you control, and accounts held in trust for you, but not accounts where you have no ownership or control.

When you must file Form 8938 with your tax return

Form 8938 is part of your federal tax return if you meet the filing threshold. You file it with your 1040 (or other income tax return) on the same important date as your return — normally April 15, or October 15 if you file an extension.

You must file Form 8938 if you are a US citizen or resident alien and your foreign financial assets exceed certain thresholds. For a single filer living in the United States, the threshold is $200,000 on the last day of the year or $300,000 at any point during the year. For married filing jointly, it is $400,000 on the last day of the year or $600,000 at any point during the year. The thresholds are higher if you live abroad — $400,000 on the last day of the year or $600,000 at any point during the year for a single filer abroad, and $800,000 or $1.2 million for married filing jointly abroad.

Form 8938 requires you to list each account, the country where it is held, the account number, and the maximum value during the year. You file it only if you also file a tax return. If you do not file a tax return, you cannot use Form 8938 — you must use FinCEN Form 114 instead.

When you must file FinCEN Form 114 (FBAR) separately

FinCEN Form 114, known as the FBAR, is a separate report filed directly with the Financial Crimes Enforcement Network, not with the IRS. The important date is April 15 of the year following the year you are reporting. You do not need to file a tax return to file an FBAR — it stands alone.

You must file an FBAR if you have a financial interest in or signature authority over any foreign financial account and the combined value of all your foreign accounts exceeds $10,000 at any point during the calendar year. "Financial interest" means you own the account or have a right to the funds. "Signature authority" means you can direct how the money is used, even if you do not own it — for example, if you are a co-signer on a parent's account or a trustee managing money for someone else.

The FBAR asks for the account holder's name, the country where the account is held, the account type (checking, savings, investment), the account number, and the maximum balance during the year. You file it electronically through FinCEN's BSA E-Filing System. There is no paper option.

How to determine which form you need, or if you need both

Start by checking whether you file a federal tax return. If you do, check the asset thresholds for Form 8938 based on your filing status and where you live. If your foreign financial assets exceed those thresholds, you must file Form 8938 with your return.

Next, check the FBAR threshold. If the combined value of all your foreign accounts exceeds $10,000 at any point during the year, you must file an FBAR. This is true even if your assets fall below the Form 8938 threshold, and even if you do not file a tax return.

Many people file both forms because the thresholds overlap. For example, a single filer living in the US with $150,000 in a foreign account does not meet the Form 8938 threshold ($200,000), but does meet the FBAR threshold ($10,000). That person files only the FBAR. A single filer with $250,000 in foreign accounts files both Form 8938 (with the tax return) and an FBAR (separately by April 15).

What counts as a foreign financial account

A foreign financial account is any account held at a bank, credit union, brokerage, investment fund, or insurance company outside the United States. It includes checking accounts, savings accounts, money market accounts, certificates of deposit, investment accounts, and retirement accounts held abroad.

It does not include a foreign credit card, a foreign pension you receive, or a foreign retirement account that is tax-deferred under US law (such as certain Canadian registered retirement savings plans). It also does not include accounts held by a US business that is incorporated in the US, even if the account itself is held abroad.

The $10,000 threshold is the combined total of all your foreign accounts. If you have three accounts worth $4,000, $3,000, and $4,000, you have crossed the threshold and must report. You report each account separately on the form, but the threshold is calculated by adding them all together.

How to file FinCEN Form 114 electronically

Go to the FinCEN BSA E-Filing System at bsaefiling.fincen.gov. Create an account using your email address and a password. You will need to provide your name, address, date of birth, and Social Security number or individual tax identification number (ITIN).

Once logged in, select "File a New Form 114" and choose the year you are reporting. Fill in your personal information, then add each foreign account. For each account, enter the account holder's name (yours or the name on the account if you have signature authority), the country, the account type, the account number, and the maximum balance during the year. You can add as many accounts as you need.

Before you submit, review the form for accuracy. FinCEN will send you a confirmation number once you file. Keep this number for your records. The important date is April 15 of the following year, but you can file earlier. If you need more time, you can request an extension through your tax return, which extends both your tax important date and your FBAR important date to October 15.

How to file Form 8938 with your tax return

Form 8938 is filed as part of your federal income tax return. If you use tax software (such as TurboTax, H&R Block, or TaxAct), the software will ask whether you have foreign financial assets and will guide you through the form if you meet the threshold. If you file by paper, you attach Form 8938 to your 1040 and mail it with your return.

On Form 8938, list each foreign account separately. Provide the account holder's name, the country, the account type, the account number, and the maximum value during the year. You also indicate whether the account is in your name, held in trust for you, or held jointly with someone else.

File Form 8938 by the same important date as your tax return — April 15, or October 15 if you file an extension. If you file an extension, your FBAR important date also extends to October 15.

What happens if you do not report

The IRS and FinCEN share information about foreign accounts. If you do not report and the IRS discovers the account through a bank disclosure or a foreign government report, you face penalties. The penalty for not filing an FBAR is up to 25 percent of the account balance for each year you failed to report. If the IRS determines the failure was willful (intentional), the penalty can be 50 percent of the balance or $100,000, whichever is higher.

The penalty for not filing Form 8938 is $10,000 per violation, plus an additional $10,000 for each 30 days you fail to correct the error after the IRS notifies you. If the IRS determines the failure was willful, the penalty is 40 percent of the underpayment of tax attributable to the unreported account.

Criminal prosecution is also possible if the IRS believes you deliberately hid the account to evade taxes. This is rare but does happen, and the consequences include fines and imprisonment.

Frequently Asked Questions

Do I have to report my spouse's foreign account if we file jointly?

Yes, if you file a joint tax return, you report all foreign accounts that either of you owns or controls. The Form 8938 threshold is based on your combined assets. For the FBAR, each spouse reports separately, but you both must file if either of you has accounts exceeding $10,000.

What if I just opened a foreign account and it never reached $10,000?

You do not have to report it. The threshold is $10,000 at any point during the year. If the account never reached that amount, you have no reporting requirement. Once it does exceed $10,000, you must report it in the year that happens.

Can I file an FBAR if I do not have a Social Security number?

Yes. If you do not have a Social Security number, you can use an individual tax identification number (ITIN). You explore for an ITIN through the IRS using Form W-7. The ITIN process takes several weeks, so explore early if you need one before your FBAR important date.

Do I report the account in the currency it is held in, or convert it to US dollars?

Convert to US dollars using the exchange rate on the last day of the year for the year-end balance, and the exchange rate on the date of the transaction for the maximum balance during the year. The IRS publishes daily exchange rates on its website if you need a reference.

What if I inherited a foreign account from someone who died?

If you inherited the account and now own it, you must report it once it exceeds the threshold. If you are the executor or trustee managing the account on behalf of an estate, you have signature authority and must report it. The reporting requirement begins in the year you take control of the account.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.