Do I Need to File an FBAR? A Plain-English Guide for U.S. Persons With Foreign Accounts

If you have foreign accounts, you may be asking: do I need to file an FBAR? The short answer is yes if your combined foreign account balances exceeded $10,000 at any point during the year, and the consequences of missing this filing are far more severe than most people realize.

The form is not filed with your tax return. It is filed separately with the Financial Crimes Enforcement Network (FinCEN) through the BSA E-Filing System. Many people who should file have never heard of it, and the penalties for missing the form, even when no tax is due, can be substantial. Here is what every U.S. taxpayer with foreign financial ties needs to know.

Do I Need to File an FBAR If My Foreign Account Was Briefly Over $10,000?

Many of our clients ask: do I need to file an FBAR if my foreign account is held jointly with a spouse? The general rule is straightforward. If you had financial interest in or signature authority over one or more foreign financial accounts, and the aggregate value of those accounts exceeded $10,000 at any point during the calendar year, you must file. The threshold is the combined high balance across every foreign account you hold, not a per-account number. Five accounts holding $3,000 each at year-end can still trigger a filing if at any single point during the year the total crossed $10,000.

What counts as a foreign account

The question of do I need to file an FBAR also applies to foreign retirement accounts, even if you cannot withdraw the funds.

The definition is broader than most people expect. Foreign bank accounts and brokerage accounts are obvious. Less obvious are foreign pension and retirement accounts, foreign mutual funds, certain foreign life insurance policies with cash value, and accounts you have signature authority over even if the assets are not yours (such as a non-U.S. employer’s account where you are a signatory). Cryptocurrency held on a foreign exchange may also be reportable, and the rules in this area continue to develop.

FBAR vs. Form 8938: a common confusion

Form 8938 (Statement of Specified Foreign Financial Assets) is filed with your income tax return and has a different and higher set of thresholds. Many taxpayers must file both. The two forms cover overlapping but not identical assets, and filing one does not satisfy the other. We see this confusion frequently in our practice. If you are filing Form 8938, you almost always need to file an FBAR. The reverse is not always true, but it is worth a careful look.

What if you missed past years

If you are reading this and realizing you should have filed FBARs in past years and did not, the worst thing to do is nothing. The IRS and FinCEN have well-defined paths for taxpayers to come into compliance, including the Streamlined Foreign Offshore Procedures, the Streamlined Domestic Offshore Procedures, and the Delinquent FBAR Submission Procedures. Each program has different eligibility rules and penalty consequences. The right one depends on the specifics of your situation, and choosing wrong can be costly.

What we tell people in this position is the same thing every time: the longer you wait, the fewer good options remain. Coming forward voluntarily is almost always better than being found.

What to do this week

If you know you have foreign accounts, gather the year-end statements and the highest balance during the year for each one. The FBAR is filed online and can be completed in under an hour for straightforward cases. If your situation is more complex, with multiple jurisdictions, foreign trusts, or business interests, the form is part of a larger international compliance picture and you will want help.

Anyone moving abroad should plan for the do I need to file an FBAR question before opening a foreign bank account, not after.

US citizens with signature authority over employer foreign accounts should also plan for do I need to file an FBAR question because many miss the question, thinking that they don’t own the funds personally.

If you are unsure whether you need to file, or you need help with a back-filing situation, our team handles these matters regularly. Learn more about our International & Expat Tax Services or schedule a consultation to walk through your specific situation.

Published April 7, 2026 by pkabashi « Back to Learning Center