Foreign Bank Account Report: How to file from abroad
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Table of Contents
What is the Foreign Bank Account Report (FinCEN Form 114)?
Shortened, it’s called FBAR, and the official form name is FinCEN Form 114.
The Foreign Bank Account Report isn’t a tax form. You’re not calculating any taxes owed here. It’s simply reporting your foreign financial accounts to stay on the right side of US compliance rules. Unlike your regular tax return, which goes to the IRS, the Foreign Bank Account Report gets submitted to the Financial Crimes Enforcement Network (FinCEN). That’s the same bureau that deals with money laundering. But don’t let that scare you. Most expats filing their Foreign Bank Account Report are just regular people with jobs and savings abroad.
Do I need to file a Foreign Bank Account Report?
If you’re a US citizen or a Green Card holder, you have to file a Foreign Bank Account Report if the combined highest balances from all your non-US accounts exceed US$10,000 during the calendar year.
You have to file a Foreign Bank Account Report if the total value of all your non-US accounts hits US$10,000 or more at any point during the calendar year. That’s not US$10,000 in one account; it’s the combined total across all your foreign accounts, even if the balance only crosses the threshold for a single day.
What account types do I need to report on my Foreign Bank Account Report?
The Foreign Bank Account Report covers more than just your basic savings account. Here’s a quick list of what usually counts as a reportable foreign account:
- Checking and savings accounts at non-US banks
- Foreign investment or brokerage accounts
- Retirement or pension accounts overseas
- Life insurance or annuity contracts that build cash value
- Online accounts that hold funds with a non-US financial institution
Now, a few things don’t need to be reported, which people often get confused about:
- Foreign real estate you own directly (not through a bank account or trust)
- Foreign-held precious metals stored in your name, as long as they’re not in an account
- Military banking facilities used by US armed forces stationed abroad
And about those digital finance tools, like Wise, Revolut, or Payoneer, these can be a gray area. If your funds sit in a foreign bank account under your name (which they often do), they likely count. If you’re not sure, it’s safer to include them.
How do I file my Foreign Bank Account Report?
You can use a tax professional to prepare and e-file your FBAR, or you can do it yourself.
The BSA e-filing instructions are clear and not too difficult to follow.
Remember: This filing is completely separate from your regular tax return (Form 1040).
Get professional help from a tax specialist to avoid double taxation. Contact us today.
Who needs to file and how to calculate the US$10,000 threshold
If the combined highest balance of all your foreign accounts totals over US$10,000 at any time during the calendar year, US citizens and Green Card holders are required to report it.
It’s not just about owning the account either. The rule covers two main situations:
- If you own the account, either by yourself or jointly.
- Or, if you have signature authority, meaning you can sign on the account or make withdrawals even if it’s technically not your money.
When it comes to calculating that US$10,000, remember, it’s not per account. You have to add up the highest balance from each non-US account during the year and add them together.
Example:
Let’s say your highest balances during the year were €6,000 in a French account, £5,000 in a UK account and NZ$100 in a PayPal account. Individually, none of the accounts exceed US$10,000, but when added together, they do. This means you will need to file an FBAR and include all your non-US accounts, no matter what the balance is.
To convert those balances to USD, you’re supposed to use the Treasury’s official year-end exchange rate, from December 31 of that tax year. They publish it every year, and it’s what you’ll use when filling out the FBAR.
When and how to file: deadlines, form details & electronic submission
The deadline to file an FBAR is usually April 15, but expats automatically get a grace period until June 15. And even if you miss that, you still have until October 15 thanks to the automatic extension. No special form is needed to get that extra time.
Now, let’s walk through how to actually file it.
The form is called FinCEN Form 114, and it’s done entirely online through the BSA E-Filing System. You don’t have to create an account or jump through a bunch of hoops. Just go to the BSA E-Filing site, fill in your info, list out each foreign account, and hit submit.
It’s important to make sure you file by the deadline and keep a copy of the confirmation page for your records.
Foreign Bank Account Report vs. FATCA Form 8938: Comparison and when both apply
Here’s where it gets a little confusing. A lot of US expats aren’t sure whether they need to file just an FBAR, or if Form 8938 (under FATCA) also applies. The truth is, you might need to file both. They sound similar, but they serve different purposes and go to different places.
|
Foreign Bank Account Report (FinCEN Form 114) |
FATCA (Form 8938) |
|
|
Filed with |
FinCEN (via BSA E-Filing) |
IRS (with your federal tax return) |
|
Threshold |
US$10,000 total across all foreign accounts |
Varies: for expats, US$200k (single), US$400k (married) |
|
Accounts covered |
Foreign bank, investment, pension accounts |
Accounts plus other foreign financial assets |
|
Deadline |
April 15 (June 15 for expats, extended to Oct 15) |
Same as your 1040 deadline (can be extended) |
|
Purpose |
Disclosure for transparency and compliance |
Tax reporting and financial asset disclosure |
The FBAR is more about compliance, letting the US know where your money is overseas.
Form 8938 dives deeper into the nature of your foreign financial assets and is used more for tax enforcement. If you hit the thresholds for both, you’ll need to file both of them.
FAQ'S
What happens if I forget to file an FBAR?
You could face penalties, even if you didn’t owe any taxes. The fines can be high, so it’s important to file on time or correct it as soon as possible.
Do I need to file FBAR every year?
Can I file FBAR with tax software?
Do joint accounts with a foreign spouse count toward FBAR?
Is there a minimum amount to report for each account on FBAR?
