Finding out you missed filing an FBAR can be stressful, especially if you’re an American living abroad who only recently learned about the requirement. The good news is that most people who forgot to report their foreign accounts can fix the mistake without facing penalties, as long as they act quickly and the mistake was unintentional.
Here’s what you need to know about catching up on late FBAR filings and why fixing the issue sooner rather than later matters.
What is FBAR and who needs to file?
The FBAR (Foreign Bank Account Report), officially known as FinCEN Form 114, is an annual disclosure required when the combined value of your foreign financial accounts goes above a certain threshold at any point during the year. This threshold applies to the aggregate balance across all accounts, not to each account individually.
The filing applies to standard bank accounts, investment accounts, certain pensions, and accounts where you hold signing authority. It’s important to note that the FBAR is not a tax form – it’s filed separately through FinCEN’s BSA E-Filing System, not with your federal return.
Many Americans abroad only learn about this obligation after moving overseas or opening their first foreign account. If you missed the deadline, don’t panic. There are ways to file an FBAR late and correct past mistakes.
How the delinquent FBAR submission procedures work
The delinquent FBAR submission procedures were designed for taxpayers who forgot to file an FBAR but properly reported all income and paid any tax owed on that income. This path is intended for honest mistakes rather than intentional concealment.
Recently, the IRS removed the former standalone webpage that outlined these procedures and included a public no-penalty assurance. The current guidance now states that late filing is a violation, penalties depend on the facts, and eligible filers should submit late reports promptly. While the webpage changed, the ability to file delinquent FBARs electronically and seek reasonable-cause relief remains intact.
| What changed | What stayed the same |
| The former standalone DFSP webpage is no longer public, and the current IRS page does not promise automatic penalty-free treatment. | FinCEN Form 114, the reporting threshold, electronic filing, late-filing explanations, and statutory reasonable-cause relief still exist. |
| No public guarantee of zero penalties for delinquent filings. | Filing before IRS contact and providing a reasonable explanation can still result in penalty relief. |
The practical outcome: If you missed FBAR filings because of confusion or lack of awareness rather than intentional avoidance, you can still correct the issue by filing the missing reports electronically and including a brief explanation for the delay.
Who qualifies for delinquent FBAR filing?
You may be eligible to use the delinquent FBAR procedures if:
- You reported all income from your foreign accounts on your US tax returns
- You paid any tax due on that income
- Your failure to file was non-willful (an honest mistake or confusion about the rules)
- The IRS has not yet contacted you about the missing FBARs
Non-willful conduct includes negligence, inadvertence, or a good-faith misunderstanding of the requirements. Examples include not knowing the FBAR existed, misunderstanding the reporting threshold, or assuming foreign accounts were reported through other forms.
If your situation is more complex, other programs may apply. The Streamlined Filing Compliance Procedures cover expats who missed both tax returns and FBARs, while the Voluntary Disclosure Practice addresses potentially willful violations.
Steps to correct late FBAR filings
If you determine you need to file delinquent FBARs, follow these steps:
1. Determine which years to file
Generally, you should file up to six years of missing FBARs. The reporting year is based on the calendar year, and each year requires a separate electronic submission.
2. Gather account information
For each account you need to report, collect:
- Account name and number
- Name and address of the foreign financial institution
- Type of account
- Maximum value of the account during the year
You must report the greatest value reached at any point during the year in US dollars. If your statements show amounts in foreign currency, convert them using the Treasury exchange rate from the last day of that calendar year.
3. File electronically through the BSA E-Filing System
Submit each missing FBAR through FinCEN’s BSA E-Filing System. When filing late, select the appropriate reason code that explains your delay. Include a brief, factual statement explaining why the reports were not filed on time.
4. Keep records
Maintain copies of filed FBARs and supporting documentation for at least five years from the filing date.
Understanding FBAR penalties and how to avoid them
FBAR penalties fall into two categories: non-willful and willful.
- Non-willful penalties apply when the failure to file was unintentional. If you file before the IRS contacts you and provide reasonable cause for the delay, penalties may be reduced or eliminated entirely.
- Willful penalties are reserved for taxpayers who knowingly ignored their obligations or intentionally concealed accounts. These penalties are significantly higher and can include criminal prosecution in severe cases involving fraud or deliberate concealment.
The key difference is timing and intent. Acting voluntarily before IRS contact gives you access to relief programs and demonstrates good faith. Waiting until after the IRS reaches out closes many doors.
Acceptable reasons for filing FBAR late
When submitting delinquent FBARs, your explanation should be honest and specific. Common acceptable reasons include:
- Unawareness of the FBAR requirement
- Confusion about whether your accounts exceeded the reporting threshold
- Misunderstanding that foreign accounts were already reported elsewhere
- Recent discovery of your US tax obligations after moving abroad
- Reliance on incorrect advice from a tax preparer unfamiliar with expat requirements
The explanation does not need to be lengthy, but it should clearly show that your failure to file was unintentional.
When streamlined procedures may be a better option
If you missed both FBARs and US tax returns, or if you have unreported foreign income, the Streamlined Filing Compliance Procedures may be more appropriate than standalone delinquent FBAR filing.
The Streamlined Foreign Offshore Procedures require three years of amended or delinquent tax returns and six years of FBARs, along with a signed certification that the conduct was non-willful. Expats who meet the non-residency requirement and whose failures were unintentional typically face no penalties through this program.
This path is particularly useful for Americans who have lived abroad for years without knowing they needed to file US returns.
Why acting now matters
The longer you wait to address missing FBARs, the fewer options remain available. Filing before the IRS contacts you keeps voluntary disclosure programs open and demonstrates that your conduct was non-willful. Once the IRS initiates contact or opens an examination, many relief programs close, and penalties become more difficult to avoid.
Foreign banks now report account information to the IRS under FATCA, meaning the agency may already have records of your accounts. Correcting the issue proactively is far better than waiting for the IRS to reach out first.
Moving forward with confidence
If you missed FBAR filings, you’re not alone. Many Americans abroad only learn about this requirement after establishing foreign accounts. The IRS recognizes that honest mistakes happen. The key is addressing the issue promptly, providing a reasonable explanation, and ensuring all income was properly reported.
Whether you qualify for delinquent FBAR submission procedures, streamlined filing, or another compliance path depends on your specific situation. Understanding the options and acting quickly gives you the best chance of correcting past mistakes without penalties and staying compliant going forward.
This content is provided for informational purposes only and is not a substitute for professional advice. AFP editorial staff were not involved in the creation of this content.
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