FBAR
Washington, DC FBAR and foreign-account reporting.
Mr. Powell handles FBAR penalty cases and foreign account reporting disputes nationwide, and he answers the IRS letter that opens them. An FBAR is FinCEN Form 114. Under 31 U.S.C. section 5314 a United States person must file it when foreign financial accounts exceeded $10,000 in the aggregate at any point in the calendar year. It is due April 15, with an automatic extension to October 15, and it is filed with FinCEN rather than with the tax return. The penalty structure in 31 U.S.C. section 5321(a)(5) separates non-willful from willful conduct. Form 8938 under Internal Revenue Code section 6038D is a different form with different thresholds. The paper in hand controls, and this page does not calculate any date.
The firm has an office at 1629 K Street NW, Suite 300 in Washington, DC and represents individuals and closely held businesses in disputes involving foreign accounts, FBAR penalties, and international information returns.
Each matter begins with the accounts, the years, and whether the IRS has already sent a notice or penalty letter.
The reporting procedures described on this page were checked on irs.gov and uscode.house.gov on September 4, 2026. How the non-willful penalty is counted was checked against Bittner v. United States, 598 U.S. 85 (2023), on September 10, 2026. The notice in hand controls over this summary.
The FBAR is a Treasury report.
The Report of Foreign Bank and Financial Accounts is FinCEN Form 114. The IRS states that a United States person must file it when the aggregate value of foreign financial accounts exceeded $10,000 at any time during the calendar year. The report is filed electronically through the BSA E-Filing System. The annual due date is April 15, with an automatic extension to October 15.
The FBAR is separate from the income tax return. Civil and criminal penalties can apply to violations. This page does not determine whether a filing was required or whether a penalty applies.
How the non-willful penalty is counted was settled in 2023. In Bittner v. United States the Supreme Court held that the non-willful penalty under 31 U.S.C. section 5321(a)(5) applies per annual report, not per unreported account. Willful violations are calculated differently and are far larger. The penalty amounts are adjusted for inflation, so read the current figure from the notice and the current IRS or FinCEN source rather than from any summary, including this one.
IRS Statistics of Income counts Form 1040 returns by ZIP Code. It does not count FBAR filings or foreign accounts.
Official source: IRS, Report of Foreign Bank and Financial Accounts
Official source: IRS, Comparison of Form 8938 and FBAR requirements
Official source: 31 U.S.C. 5314
Official source: IRS SOI ZIP Code data
Official source: 31 U.S.C. 5321
Official source: 26 U.S.C. 6038D
The work
Identify the accounts.
Identify the accounts
List each foreign financial account, the years involved, and whether a United States person had a financial interest or signature or other authority.
Separate the FBAR from the return
The FBAR is a Treasury report. It is not the income tax return. Income reporting, Form 8938, and other international information returns are separate filings.
Read the current IRS path
Late or missing FBAR filings are reviewed under the procedures the IRS and FinCEN currently publish. Streamlined Filing Compliance Procedures and the IRS Voluntary Disclosure Practice are the published options when income reporting is also at issue.
Address any penalty notice
If the IRS has proposed or assessed an FBAR penalty, start with that notice, the years it names, and the response instructions it prints.
Missed filings and published IRS paths.
When foreign accounts were omitted from required reports, the next step depends on whether the income was reported, whether the IRS has already made contact, and which procedure the IRS currently publishes. The IRS Voluntary Disclosure Practice and the Streamlined Filing Compliance Procedures are the two published programs the firm reviews when past filing and reporting failures include foreign accounts.
Do not treat a blog summary or an old IRS page as the current rule. Read the IRS sources linked here and the notice in hand.
Official source: IRS Voluntary Disclosure Practice
Official source: Streamlined Filing Compliance Procedures
Questions
Common questions.
What is an FBAR?
The Report of Foreign Bank and Financial Accounts is FinCEN Form 114. Under 31 U.S.C. section 5314, a United States person must file it when that person had a financial interest in, or signature or other authority over, at least one financial account located outside the United States and the aggregate value of those accounts exceeded $10,000 at any time during the calendar year. It is filed electronically through FinCEN's BSA E-Filing System, not with the federal income tax return.
Is the FBAR the same as Form 8938?
No. The FBAR is a Treasury report on FinCEN Form 114 under 31 U.S.C. section 5314. Form 8938 is an IRS international information return under Internal Revenue Code section 6038D, with different thresholds and a different filing route. The IRS publishes a comparison of the two requirements. A person can have an FBAR requirement, a Form 8938 requirement, both, or neither, depending on the accounts and the years.
What published IRS paths exist for missed foreign-account filings?
The IRS Voluntary Disclosure Practice and the Streamlined Filing Compliance Procedures are the two published programs the firm reviews when past filing and reporting failures include foreign accounts. Which path applies depends on whether the income was reported, whether the IRS has already made contact, and the procedures the IRS currently publishes. The penalty structure in 31 U.S.C. section 5321(a)(5) separates non-willful from willful conduct, and that distinction is the fact the file turns on.
When is the FBAR due?
The IRS states that the FBAR is an annual report due April 15 following the calendar year reported, with an automatic extension to October 15. The extension does not have to be requested. The report covers the calendar year, and it is filed with FinCEN rather than with the income tax return. The date rules on the current IRS FBAR page state the deadline for any particular year.
What if the IRS has already sent an FBAR penalty notice?
Start with that notice, the years it names, and the response instructions it prints. The IRS states that civil monetary penalties can apply to FBAR reporting and recordkeeping violations, and that assertion of penalties depends on facts and circumstances. In Bittner v. United States, 598 U.S. 85 (2023), the Supreme Court held that the non-willful penalty under 31 U.S.C. section 5321(a)(5) applies per annual report rather than per unreported account. Willful violations are calculated differently and are far larger, and the amounts are adjusted for inflation, so the current figure comes from the notice and the current IRS or FinCEN source.
If income tax returns are also missing.
Past-due Form 1040 filings are a different problem from the FBAR. Read unfiled tax returns. If the IRS is already examining the years, start with IRS audit defense.
Related pages
Related FBAR resources.
- Washington, DC tax attorneyIRS examinations, appeals, collections, penalties, and U.S. Tax Court from the Washington, DC office.
- Unfiled tax returnsPast-due income tax returns are a separate filing problem from the FBAR.
- IRS audit defenseAn examination may include foreign accounts and international information returns.
- Practice areasReview the firm’s federal, District of Columbia, Maryland, and international-reporting scope.
- About Mr. PowellRead the verified trial, appellate, and tax-law record.
- Start hereSend a high-level summary of the accounts and the years involved.
Send the letter code and the date printed on it.
Tell me the years involved and whether the IRS has already sent a notice. Send only a high-level summary.
Schedule an initial consultationRequesting a consultation does not make Mr. Powell your lawyer, provide legal advice, or protect a deadline.
Law Office of Alexander Powell, PLLC. 1629 K Street NW, Suite 300, Washington, DC 20006.