What Is the FBAR (Report of Foreign Bank and Financial Accounts)?
The Report of Foreign Bank and Financial Accounts (FBAR) is a US information return under which US persons disclose foreign accounts above a statutory threshold.
Also known as: FBAR, FinCEN Form 114.
How Report of Foreign Bank and Financial Accounts (FBAR) works
The Report of Foreign Bank and Financial Accounts (FBAR) is an annual disclosure required from a United States person who has a financial interest in or signature or other authority over at least one financial account located outside the United States, where the aggregate value of those accounts exceeds $10,000 at any time during the calendar year. The threshold applies to the combined maximum values of all foreign accounts, so several modest accounts can together trigger filing even when none exceeds $10,000 alone. The report is filed electronically through FinCEN's BSA E-Filing System rather than with the income tax return, and is due April 15 following the calendar year, with an automatic extension to October 15. US citizens living abroad, green card holders, other US tax residents and US entities generally fall within the definition of United States person, and covered accounts include bank, securities and many other financial accounts, subject to the regulations and their exceptions for certain account types and filers. The FBAR is an information report which does not itself create tax, yet failures to file can attract civil and criminal penalties under the Bank Secrecy Act, and separate reporting on Form 8938 may also apply.
Report of Foreign Bank and Financial Accounts (FBAR) vs Form 8938
Unlike Form 8938, which is attached to the US income tax return under FATCA and uses different thresholds, the FBAR is a Bank Secrecy Act report filed separately and electronically with FinCEN.
| Report of Foreign Bank and Financial Accounts (FBAR) | Form 8938 | |
|---|---|---|
| Where filed | Electronically with FinCEN through the BSA E-Filing System | With the annual US income tax return |
| Legal basis | Bank Secrecy Act | FATCA provisions of the Internal Revenue Code |
| Threshold | Aggregate foreign account value above $10,000 at any time in the calendar year | Higher thresholds varying with filing status and residence abroad |
Example
Illustrative example: A US citizen working remotely from Country A holds a local current account with a peak balance equivalent to $7,000 and a savings account peaking at $5,000 in the same year. Neither account alone exceeds $10,000, but the aggregate does, so an FBAR listing both accounts is generally due by April 15 of the following year, with an automatic extension to October 15. The citizen's residence abroad and any foreign earned income exclusion claimed on the tax return do not remove the FBAR requirement, and the same accounts may also need to be considered for Form 8938 if the separate thresholds for that form are met. Had the citizen also held signature authority over an employer's account in Country A without any financial interest, that account would generally count toward the FBAR analysis as well, subject to the exceptions set out in the regulations. Records of each account's maximum value during the calendar year, converted at the appropriate year-end exchange rate, support the filing and any later review.
Common misconception
Myth: Living abroad or paying tax locally removes the FBAR obligation.
Reality: The FBAR obligation follows United States person status and the aggregate foreign account value, regardless of country of residence or tax paid locally.
Frequently asked questions
Who has to file an FBAR?
The Report of Foreign Bank and Financial Accounts is required from a United States person with a financial interest in or authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during the calendar year.
What is the FBAR threshold?
The FBAR threshold is met when the aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year, even if no single account exceeds that amount.
When is the FBAR due?
The Report of Foreign Bank and Financial Accounts is due April 15 following the calendar year reported, with an automatic extension to October 15, and is filed electronically through FinCEN's BSA E-Filing System.
Is the FBAR the same as Form 8938?
The FBAR and Form 8938 are separate: the FBAR is filed with FinCEN under the Bank Secrecy Act, while Form 8938 accompanies the income tax return under FATCA, and both may apply to the same accounts.
Related terms
- Form 8938 — Separate FATCA asset report often confused with FBAR
- US Person — Status which triggers the FBAR obligation
- FATCA (Foreign Account Tax Compliance Act) — Parallel regime reporting accounts from the bank side
- Streamlined Filing Compliance Procedure — Route used to catch up on missed FBARs
Related guides
- Global tax reform and US digital nomads — US compliance context for nomads
- US expat tax reform debate — Debate on US expat reporting burdens
- Accounting and bookkeeping for digital nomads — Record-keeping that supports account reporting
Sources
Last verified: 2026-10-09. This entry is general information, not tax or legal advice; rules vary by country and change over time.
