Foreign Bank Account Reporting (FBAR)
Taxpayers living in the United States and abroad have an obligation to disclose their foreign bank accounts to the federal government. While minimum account value thresholds apply, most taxpayers need to make foreign bank account disclosures—and those who don’t can face serious consequences.
Under federal law, taxpayers may have two overlapping foreign bank account disclosure obligations: They may need to file a Report of Foreign Bank and Financial Accounts (FBAR) with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), and they may need to file Form 8938 with the Internal Revenue Service (IRS). Failure to file either of these can lead to civil or criminal penalties.
What's an FBAR?
The FBAR is the form that all U.S. taxpayers are required to file if they have interests in off shore bank accounts. Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, a.k.a. the FBAR, must be filed by U.S. taxpayers who own foreign bank accounts. An FBAR must also be filed by taxpayers who do not own a foreign bank account, but who have an indirect interest in a foreign account, such as persons with signatory authority over a foreign account. These taxpayers must file an FBAR even if they have no personal interest in the funds in the account. Often this is the case for taxpayers who manage their elderly parents' affairs or who are employees of companies with offshore interests.
The IRS takes the FBAR requirement very seriously. Failure to file a required FBAR can result in severe financial penalties and even prosecution for a felony. Anyone with an interest in an offshore account who has not been filing FBARs is at risk for civil penalties and criminal prosecution.
How can Thorn Law Group assist you with your reporting requirements?
The IRS is still accepting Voluntary Disclosures and Offshore Accounts Cases!
By entering the IRS Offshore Voluntary Disclosure Initiative:
- You will come into full compliance with the law;
- Your civil penalties will be reduced, and if your IRS disclosure is accepted;
- You will avoid criminal investigation or prosecution.
U.S. taxpayers with undisclosed foreign accounts and/or unfiled offshore disclosure forms should contact an IRS offshore voluntary disclosure initiative attorney from Thorn Law Group for assistance in understanding your filing obligations and assessing whether the 2018 IRS Offshore Voluntary Disclosure Initiative is right for you.
Let the experienced tax attorneys at Thorn Law Group assist with your IRS voluntary disclosure case and with issues related to your undisclosed foreign and offshore bank accounts. Thorn Law Group has the national and international tax law experience and is well positioned in Washington, DC, to represent your case before the IRS and DOJ.
This is an area of ongoing activity by the IRS and the Department of Justice. Visit our News & Resources section for the latest developments.
Taxpayers Who Need to File an FBAR May Also Need to File IRS Form 8938
As mentioned above, taxpayers who need to file an FBAR may also need to file IRS Form 8938. While filing a compliant FBAR satisfies taxpayers’ obligations under the Bank Secrecy Act (BSA), taxpayers must file Form 8938 to comply with the Foreign Account Tax Compliance Act (FATCA).
While FBARs have a single filing threshold (taxpayers must file if the aggregate value of their foreign bank accounts exceeds $10,000 at any time during the tax year), FATCA has varying filing thresholds. As of 2026, these thresholds are as follows:
- Living in the U.S. and Filing Separately – Total value of foreign financial assets was more than $50,000 on the last day of the tax year or more than $75,000 at any time during the year.
- Living in the U.S. and Filing Jointly – Total value of foreign financial assets was more than $100,000 on the last day of the tax year or more than $150,000 at any time during the year.
- Living Abroad and Filing Separately – Total value of foreign financial assets was more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.
- Living Abroad and Filing Jointly – Total value of foreign financial assets was more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
Just like failing to file an FBAR, failing to file Form 8938 can have civil or criminal consequences, depending on the circumstances. As a result, taxpayers who are behind on their filing obligations should promptly hire an experienced lawyer to help them safely come into compliance without unnecessary consequences.
More Information for Taxpayers Who Are Behind on Their Offshore Account Disclosures
Taxpayers who are behind on their foreign bank account reporting obligations—and who are not yet facing scrutiny from the IRS—generally have two potential options available. Those who have committed non-willful violations may be eligible to submit a streamlined filing, while those who have committed willful violations may be eligible to make a voluntary disclosure.
Choosing the right option is critical. Neither option guarantees safety—though taxpayers can avoid audits, investigations, and criminal prosecution with the right approach. We can guide you forward, and we encourage you to contact us promptly if you need more information.
Schedule a Confidential Consultation with IRS Voluntary Disclosure Lawyer Kevin E. Thorn
If you have any questions please contact IRS voluntary disclosure lawyer Kevin E. Thorn, Managing Partner of the Thorn Law Group at ket@thornlawgroup.com or call (202) 270-7273 to assess your civil and/or criminal exposure.