FBAR and FATCA Reporting Requirements 2024
Step-by-step guide to foreign bank account reporting, FATCA compliance, and avoiding penalties for US persons abroad.
What is FBAR?
The Foreign Bank Account Report (FBAR) is a report that must be filed by US persons who have financial interest in, or signature authority over, foreign financial accounts if the aggregate value exceeds $10,000 at any time during the calendar year.
Who Must File FBAR
- US citizens
- US residents (green card holders)
- US entities (corporations, partnerships, LLCs, trusts, estates)
- Anyone with signature authority over foreign accounts
FBAR Threshold and Calculation
The $10,000 threshold is calculated using the highest balance in each account during the year, converted to US dollars using the December 31 exchange rate.
What Accounts Must Be Reported
Financial Accounts Include:
- Bank accounts (checking, savings)
- Investment accounts (brokerage, mutual funds)
- Pension and retirement accounts
- Insurance policies with cash value
- Precious metals accounts
Accounts Generally NOT Reported:
- Real estate (unless held through a foreign entity)
- US military banking facility accounts
- Correspondent or nostro accounts
- Accounts owned by governmental entities
FBAR Filing Requirements
Filing Deadline
FBAR must be filed by April 15 following the calendar year being reported. There's an automatic extension to October 15 - no need to request it.
How to File
FBAR is filed electronically through the BSA E-Filing System on the FinCEN website. It's filed separately from your tax return.
Required Information
- Account numbers
- Name and address of foreign financial institution
- Type of account
- Maximum account value during the year
What is FATCA?
The Foreign Account Tax Compliance Act (FATCA) requires US persons to report specified foreign financial assets using Form 8938, which is filed with your tax return.
FATCA Thresholds for 2024
Living in the US:
- Single/Married filing separately: $50,000 (year-end) or $75,000 (any time)
- Married filing jointly: $100,000 (year-end) or $150,000 (any time)
Living Abroad:
- Single/Married filing separately: $200,000 (year-end) or $300,000 (any time)
- Married filing jointly: $400,000 (year-end) or $600,000 (any time)
FBAR vs FATCA: Key Differences
| Aspect | FBAR | FATCA (Form 8938) |
|---|---|---|
| Threshold | $10,000 | $50K-$400K (varies) |
| Filing Method | FinCEN (separate) | With tax return |
| Deadline | April 15 (auto ext to Oct 15) | Tax return deadline |
| Penalties | Up to $12,921 per account | Up to $60,000 |
Penalties for Non-Compliance
FBAR Penalties
- Non-willful: Up to $12,921 per account per year
- Willful: Greater of $129,210 or 50% of account balance
FATCA Penalties
- Failure to file: $10,000 initial penalty
- Continued failure: Additional $10,000 every 30 days (max $60,000)
Voluntary Disclosure Options
Streamlined Filing Compliance Procedures
For taxpayers with non-willful violations, this program allows catch-up filing with reduced penalties.
Delinquent FBAR Submission Procedures
For those who only missed FBAR filings (no tax return issues), this allows penalty-free catch-up filing.
Best Practices for Compliance
- Keep detailed records of all foreign accounts
- Track maximum balances throughout the year
- Set calendar reminders for filing deadlines
- Consider professional help for complex situations
- File even if uncertain - it's better than not filing
Special Situations
Joint Accounts
Each US person with signature authority must file their own FBAR, even for joint accounts.
Retirement Accounts
Foreign retirement accounts generally must be reported on FBAR, but may have exceptions under tax treaties for FATCA.
Business Accounts
Accounts of foreign entities in which you have ownership may require reporting depending on ownership percentage.
Need Help with FBAR or FATCA Compliance?
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