Knowledge Center Financial Accounts & Investing Abroad

Delinquent FBAR Submission Procedures: How to Get Back on Track Without Penalties

If you voluntarily come forward to file past-due FBARs before the IRS contacts you, the IRS offers programs that can eliminate penalties entirely for non-willful violations. Most expats who catch up through the Delinquent FBAR Submission Procedures or Streamlined Filing Procedures face almost no penalties when their failure to file was unintentional.

Missing your FBAR filing doesn’t mean you’re facing automatic fines. Thousands of Americans living abroad discover their foreign account reporting requirements after the deadline has passed, and the IRS acknowledges that most failures to file are due to honest mistakes rather than intentional tax evasion.

Whether you just learned about FBAR requirements, received conflicting advice from a tax preparer, or didn’t realize your accounts exceeded the $10,000 threshold, you have clear paths to get compliant without the hefty penalties you might fear. This guide explains exactly how to catch up on delinquent FBARs, which IRS programs eliminate penalties, and what steps to take right now to resolve your situation with peace of mind.

What Is FBAR and Why Does Missing It Matter?

The Foreign Bank Account Report (FBAR), officially known as FinCEN Form 114, is an annual report you must file with the US Treasury Department if your foreign financial accounts exceeded $10,000 in aggregate at any point during the calendar year.

What counts toward the $10,000 threshold:

Foreign bank accounts (checking, savings, money market)
Foreign brokerage and investment accounts
Foreign mutual funds and securities
Foreign retirement and pension accounts
Foreign life insurance policies with cash value
Any account where you have signature authority, even if you don’t own it

The FBAR is purely informational and doesn’t create additional tax liability. You don’t pay taxes based on FBAR filing. Instead, it helps the Treasury Department track cross-border financial flows and prevent tax evasion through unreported offshore accounts.

Important

FBAR differs from FATCA Form 8938. FBAR focuses on foreign bank accounts, while FATCA covers a broader range of foreign assets. You may need to file both depending on your situation, and each has different thresholds and deadlines.

If your FBARs are late or you’re unsure what to file next, our team is here to guide you.

Your clear, calm path to FBAR compliance starts here.

What Are the Penalties for Late FBAR Filing?

The penalties for missing FBAR deadlines depend entirely on whether the IRS determines your failure was willful (intentional) or non-willful (accidental). This distinction makes an enormous difference in potential fines.

Non-Willful Violations

Non-willful violations occur when you didn’t know about the FBAR requirement, made an honest mistake, or relied on bad advice. For 2025, non-willful FBAR penalties are:

Maximum penalty: Up to $16,536 per unfiled form (adjusted annually for inflation)
Per form, not per account: A 2023 Supreme Court decision in Bittner v. United States clarified that non-willful penalties apply per form, not per account. This means if you failed to file one FBAR that should have reported 10 accounts, you face one penalty rather than ten.
Reasonable cause exception: If you can demonstrate reasonable cause for your failure to file, the IRS may waive penalties entirely.

What qualifies as non-willful:

You didn’t know FBAR filing was required
Your tax preparer didn’t inform you of the requirement
You misunderstood which accounts needed reporting
You thought the $10,000 threshold applied per account, not in aggregate
You relied on incorrect professional advice

Willful Violations

Willful violations occur when you knew about the FBAR requirement and deliberately chose not to file, or when you were recklessly indifferent to your reporting obligations. For 2025, willful penalties are severe:

Maximum penalty: The greater of $165,353 or 50% of the account balance at the time of the violation
Per year: These penalties can apply for each year you didn’t file
Criminal prosecution possible: In extreme cases involving fraud or tax evasion, willful violations can result in criminal charges with fines up to $250,000 and five years in prison

What the IRS considers willful:

You checked “no” on Schedule B, knowing you had foreign accounts
You actively hid accounts from the IRS
You received prior IRS warnings about FBAR requirements and ignored them
You took steps to conceal account ownership

Important

Simply checking “no” on Schedule B doesn’t automatically make you willful if you genuinely didn’t understand the question or thought it didn’t apply to your situation.

Statute of Limitations

The IRS can assess FBAR penalties for up to six years from the date the return is due. This means if you’re catching up on delinquent FBARs, you typically need to file for the past six years at most.

How Can I File Past-Due FBARs Without Penalties?

If you voluntarily come forward before the IRS contacts you, several programs can eliminate or minimize penalties. The key is acting quickly and choosing the right program for your situation.

Delinquent FBAR Submission Procedures (Best for Simple Cases)

The Delinquent FBAR Submission Procedures allow you to file missing FBARs without penalties if you meet specific qualifications. This program works best when your only issue is missing FBARs and your tax returns are otherwise compliant.

Who qualifies:

The IRS hasn’t contacted you about your FBARs or an audit
You correctly reported all income from your foreign accounts on your US tax returns
You paid all taxes owed on that income
Your failure to file FBARs was non-willful

How to use this program:

Step 1: Gather Your Account Information: Collect statements for all foreign accounts for each year you need to file. You’ll need:

Account numbers and names of financial institutions
Maximum account balances during each calendar year
Currency conversion rates (use Treasury Department rates for December 31)

Step 2: File All Missing FBARs: Complete FinCEN Form 114 for each year you missed (up to six years back). FBARs must be filed electronically through the BSA E-Filing System at FinCEN.gov. Paper filing is not accepted.

Step 3: Write a Statement of Reasonable Cause: Include a clear, honest explanation with your filing. Keep it concise and factual:

“I was unaware of the FBAR requirement while living abroad.”
“My tax preparer didn’t inform me about FBAR filing.”
“I misunderstood that the $10,000 threshold applied to all accounts combined.”

Step 4: Submit Electronically: File each FBAR through the BSA E-Filing System. The system will walk you through each required field.

What happens next: If the IRS accepts your submission, it waives all penalties. You’ll receive confirmation of your filing, and you will be back in compliance. If the IRS has questions, they may contact you for additional information; however, a voluntary disclosure significantly reduces penalty risk.

Important limitation

This program only works if your tax returns are up to date and accurate. If you also have unreported income or unfiled tax returns, you’ll need to use the Streamlined Filing Procedures instead.

Streamlined Filing Compliance Procedures (For Unreported Income Too)

The Streamlined Filing Compliance Procedures help expats who missed both FBARs and tax returns, or who have unreported foreign income. This comprehensive program addresses all compliance issues simultaneously.

Who qualifies:

You were outside the US for at least 330 days in one of the past three years
Your failure to file was non-willful
You haven’t been contacted by the IRS about an audit or investigation

What you must file:

Three years of delinquent or amended tax returns (most recent)
Six years of FBARs
Form 14653 certifying your non-willful conduct

Penalties for expats living abroad:

FBAR penalties: $0 for non-willful violations when living abroad
Tax penalties: None if you file before the IRS contacts you
Taxes owed: You must pay any back taxes and interest on unreported income

Example: James lived in Germany for five years and didn’t file U.S. tax returns or FBARs because he was unaware that U.S. citizens abroad have filing obligations. He earned $85,000 annually and paid German taxes. Through Streamlined Procedures, he files three years of returns (using the Foreign Earned Income Exclusion to exclude his income), six years of FBARs, and Form 14653. His penalty: $0. His tax owed: $0 after exclusions.

Learn more about how to qualify for Streamlined Filing.

Voluntary Disclosure Program (For Willful Violations)

If your failure to file was willful or you’re at risk of criminal prosecution, the Voluntary Disclosure Program (VDP) provides a path to compliance while reducing criminal risk.

Who needs this program:

You intentionally didn’t file FBARs, knowing you should have
You actively concealed accounts or income from the IRS
Your situation involves potential fraud or tax evasion

Penalties:

Typically 75% of the highest aggregate account balance over six years
No criminal prosecution if you voluntarily disclose before IRS contact
You must pay all back taxes and interest

Important

This program involves higher penalties but protects you from criminal charges. If you believe your case might be considered willful, consult with a tax attorney before proceeding.

Why “Quiet Disclosure” Is Risky (Not Recommended)

Some taxpayers consider “quiet disclosure,” which means filing past-due FBARs without using an official IRS program. This approach is extremely risky and strongly discouraged.

Why it’s dangerous:

Provides no penalty protection
Can trigger IRS audits and heightened scrutiny
May convert a non-willful situation into a willful one
Eliminates eligibility for amnesty programs

If you come forward voluntarily through proper channels, you’re far more likely to avoid penalties than if you file quietly and hope the IRS doesn’t notice.

What If I Can’t Find All My Account Statements?

Missing documentation doesn’t prevent you from filing delinquent FBARs. Here’s how to gather the information you need:

Contact your foreign banks directly: Most financial institutions can provide historical statements for at least six years. Request year-end statements showing maximum balances.
Use bank statements you have: If you have some months but not all twelve, use the highest balance you can document and note in your statement that you’re using the best information available.
Check electronic records: Many banks offer online access to historical statements. Download and save PDFs of all available documentation.
Estimate with reasonable accuracy: If you truly cannot obtain statements, you can estimate balances based on available information. Document your estimation method in your reasonable cause statement.

The IRS understands that historical records aren’t always available. They’re primarily concerned with voluntary compliance, not perfect precision.

When Should I File and What’s the Deadline?

Annual FBAR deadline: April 15 (same as tax returns)
Automatic extension: October 15 (you don’t need to request this extension; it’s automatic)

For delinquent FBARs, there’s no specific deadline to use the amnesty programs, but you must act before the IRS contacts you. Once the IRS initiates an examination or contacts you about FBAR violations, you’re no longer eligible for penalty-free programs.

Don’t wait: The sooner you file, the sooner you achieve peace of mind and eliminate the risk of escalating penalties. The six-year statute of limitations continues running, but voluntary disclosure is always better than IRS discovery.

Learn more about US expat tax deadlines.

Can the IRS Find Out About My Unreported Accounts?

Yes. The IRS has multiple tools to identify unreported foreign accounts:

FATCA reporting: Under the Foreign Account Tax Compliance Act (FATCA), foreign financial institutions report US account holders’ balances directly to the IRS. Banks worldwide comply with FATCA to maintain access to the US financial markets.
International information sharing: The US has tax treaties and information exchange agreements with dozens of countries, allowing automatic sharing of financial data.
Third-party reporting: Transfers, wire payments, and other financial transactions often leave trails that IRS systems can flag.

The IRS generally knows who is required to file FBARs. They cross-reference FATCA reports with filed FBARs to identify non-compliance. Voluntary disclosure is always preferable to IRS discovery.

What If I Have Joint Accounts with a Non-US Spouse?

Joint accounts with non-US citizen spouses require special attention:

Your FBAR obligation: You must report the full balance of jointly-owned accounts, even though your spouse isn’t a US person and has no filing obligation.

Spouse filing options: If all your reportable accounts are jointly owned with your spouse, you can file one FBAR for both of you using Form 114a (Record of Authorization). Your spouse signs Form 114a authorizing you to file on behalf of both.

Separate filing required if:

Either spouse has individually-owned accounts
You have signature authority on accounts your spouse doesn’t share

Learn more about FBAR requirements for joint accounts.

What Happens If the IRS Contacts Me First?

If you receive IRS correspondence about FBAR compliance before you’ve filed voluntarily, you lose eligibility for the penalty-free amnesty programs. However, you still have options:

Respond promptly: Never ignore correspondence from the IRS. Respond by the deadline stated in the letter.
Seek professional help immediately: Contact a tax professional who specializes in international tax and FBAR compliance. Our team can help you understand your options and represent you in communications with the IRS.
Reasonable cause defense: Even without amnesty program eligibility, you may still avoid penalties by demonstrating reasonable cause for your failure to file. Documentation and a compelling explanation are critical.
Negotiate penalties: In some cases, penalties can be negotiated or reduced, especially for first-time violators with documented reasonable cause.

The worst thing you can do is ignore IRS contact. Addressing the issue head-on, even after IRS discovery, typically results in better outcomes than avoidance.

How Greenback Can Help You Get Back on Track

Filing delinquent FBARs doesn’t have to be overwhelming. Whether you need to catch up on six years of FBARs, file through Streamlined Procedures, or need guidance on which program is right for your situation, we can help.

Greenback is an American company founded in 2009 by US expats for expats. We focus exclusively on expat taxes and always have. Many of our CPAs and Enrolled Agents are expats themselves, living in 14 time zones and experiencing firsthand the challenges of living abroad. They have the knowledge and patience to guide you through FBAR compliance without judgment or stress.

Our FBAR services include:

Stand-alone FBAR filing ($115 for up to 5 accounts)
Streamlined Filing Package ($1,600 flat fee) for three years of returns and six years of FBARs
Consultation services to evaluate your specific situation
Full representation if you’ve been contacted by the IRS

Don’t let fear of penalties keep you from getting compliant. Based on our experience with thousands of expats, those who voluntarily come forward through proper channels rarely face penalties when their failure to file was non-willful.

Contact us, and one of our Customer Champions will help you understand your options. If you’re ready to be matched with a Greenback accountant who can help you catch up on delinquent FBARs, click the get started button below.

Need help submitting late FBARs? You’re in the right place.

Start with a straightforward plan designed to bring you back into compliance.

This article provides general information and should not be considered specific legal or tax advice. FBAR rules and penalties are complex and subject to change. Always consult with qualified tax professionals regarding your specific situation before filing delinquent FBARs.

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