What do I do if I haven’t filed foreign bank account reporting (FBAR) for several years?
If you haven’t filed the FBAR for several years, you’ll need to report your foreign accounts for the years you’ve missed to avoid penalties for non-compliance. Depending on your situation, you can use the Streamlined Filing Program or the Delinquent FBAR Submission Procedures to get caught up penalty-free.
How Far Back Can the IRS Enforce FBAR Compliance?
The IRS enforces compliance with FBAR (Foreign Bank and Financial Accounts Report) for up to six years. Penalties may apply for non-filing. Importantly, the statute of limitations starts only upon filing FBAR, emphasizing the need for timely compliance by expatriates with foreign financial accounts.
How to File Late FBARs Through the Streamlined Program
If you’re at least three years behind on your Federal tax returns, you can use the Streamlined Program to get caught up on your FBAR filings and taxes at the same time.
The Streamlined Program allows individuals who were unaware of their filing requirement to catch up on their late taxes and FBAR reporting penalty-free. This IRS program requires you to file your last three (3) years of tax returns and up to six (6) FBARs.
Learn about how you can get caught up easily with our Streamlined Filing Package.
Delinquent FBAR Submission Procedures
If you’re up-to-date on your US taxes, then you can use the Delinquent FBAR Submission Procedures to resolve your late FBAR filings. So long as you are not under investigation by the IRS and have not been contacted about your late FBARs, you can catch up without having to pay the usual failure-to-file penalties.
To use these procedures, you’ll need to file all missing FBARs electronically and submit a statement to indicate your reason for filing late.
Learn about our Foreign Bank Account Reporting services.
Ask a Tax Professional What’s Right for You
If you need to file late FBARs, the appropriate option will depend on your specific circumstances. Book a consult with a Greenback accountant to discuss your situation and the best option for you.
Ready to get caught up on your Foreign Bank Account Reporting now? Get started today to meet your dedicated accountant and get up-to-date hassle-free.
