Important Notice
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. FBAR and FATCA obligations involve complex reporting requirements with significant penalties for non-compliance. Consult a qualified tax professional specializing in US expat tax before making filing decisions based on this information. All figures verified against primary sources as of March 2026.
How We Researched This
This guide draws on 12 primary government and institutional sources, including the IRS Form 8938 vs FBAR comparison page, FinCEN's BSA reporting requirements, the eCFR inflation-adjusted penalty table (31 CFR 1010.821), the Federal Register civil penalty adjustment notice (90 FR 5630), and the Supreme Court opinion in Bittner v. United States (598 U.S. ___, 2023). Streamlined procedures verified against IRS pages last reviewed February 2026. Cross-referenced against analysis from Taft Law and Winston & Strawn.
Key Takeaways
- FBAR (FinCEN Form 114) and FATCA (Form 8938) are separate foreign account reporting requirements. Many US expats must file both, and filing one does NOT satisfy the other.
- FBAR threshold is $10,000 aggregate across all foreign accounts at any point during the year. Form 8938 threshold for expats is $200,000 (single) or $400,000 (MFJ) on the last day. Different thresholds, different asset types, different filing systems.
- Current penalties: Non-willful FBAR failure = up to $16,536 per report (inflation-adjusted, January 2025). Willful FBAR failure = up to $165,353 or 50% of account balance. These are the actual current figures, not the $10,000/$100,000 base amounts you'll see elsewhere.
- Bittner v. US (2023): The Supreme Court ruled non-willful FBAR penalties apply per report (one per year), NOT per account. For an expat with 5 foreign accounts, maximum non-willful penalty = $16,536/year, not $82,680.
- If you're behind: The Streamlined Foreign Offshore Procedures (SFOP) offer zero penalties for qualifying expats who non-willfully failed to file. File 3 years of returns plus 6 years of FBARs. Still active as of February 2026.
- Your Portuguese/Spanish Social Security contributions (Seguranca Social / Seguridad Social) are explicitly not reportable on either FBAR or Form 8938.
In This Guide
- What Are FBAR and FATCA? (Definitions in Plain English)
- Who Must File — And When Both Apply
- FBAR vs Form 8938: The Complete Comparison
- What Counts as a "Foreign Financial Account"?
- Thresholds: When Each Requirement Kicks In
- Penalties: The Real Numbers (Inflation-Adjusted 2025)
- Bittner v. US: The Supreme Court Case That Changed FBAR Penalties
- Your Accounts in Portugal and Spain: What's Reportable?
- Behind on Filing? Your Amnesty Options
- Filing Calendar and Step-by-Step Process
- The 10 Most Dangerous Misconceptions
- Frequently Asked Questions
- Sources
What Are FBAR and FATCA? (Definitions in Plain English)
FBAR and FATCA are two separate US federal reporting requirements that apply to Americans with financial accounts outside the United States. They are not interchangeable, they are filed through different systems, and meeting one obligation does not satisfy the other.
FBAR stands for Report of Foreign Bank and Financial Accounts. Its legal name is FinCEN Form 114, and it exists under the Bank Secrecy Act (31 USC § 5314). The form is administered by FinCEN (the Financial Crimes Enforcement Network), which is a bureau of the US Treasury Department. It is not administered by the IRS. Congress created the FBAR requirement in 1970 as an anti-money-laundering measure.
FATCA is the Foreign Account Tax Compliance Act, passed in 2010 to combat offshore tax evasion. The individual reporting component is Form 8938, formally titled "Statement of Specified Foreign Financial Assets," and it sits under IRC § 6038D. The IRS administers Form 8938, and you file it attached to your annual Form 1040.
Both are reporting requirements. Neither creates a new tax obligation by itself. You are telling the government that certain accounts or assets exist abroad. The IRS puts it directly: "The Form 8938 filing requirement does not replace or otherwise affect a taxpayer's obligation to file FinCEN Form 114."
Filing Systems Are Completely Separate
FBAR is filed with FinCEN at bsaefiling.fincen.treas.gov, completely separate from your IRS tax return. Form 8938 is attached to your Form 1040. Different agencies, different electronic systems, different deadlines (mostly: see Section 10 for the calendar).
Who Must File — And When Both Apply
Any US person with a financial interest in or signature authority over foreign financial accounts exceeding $10,000 in aggregate at any time during the year must file an FBAR. Form 8938 applies to specified individuals whose foreign financial assets exceed higher, status-dependent thresholds.
For FBAR purposes, "US person" means US citizens, resident aliens, trusts, estates, and domestic entities. You trigger the filing requirement the moment your combined foreign account balances cross $10,000 at any point during the calendar year. Not on December 31. At any point.
Form 8938 applies to specified individuals (US citizens, resident aliens, certain non-resident aliens who elect to be treated as residents) and specified domestic entities. The thresholds are substantially higher and vary by filing status and whether you live in the US or abroad.
When do both apply simultaneously? More often than you might expect. A US citizen living in Lisbon with a CGD bank account holding €15,000 and a multi-currency fintech account holding €10,000 already sits above the FBAR threshold ($10,000 aggregate). Add Portuguese investment accounts that push total foreign assets past $200,000, and Form 8938 also kicks in. One detail that surprises people: if you have signature authority over someone else's foreign account, such as an employer's account or a parent's account, you may need to file FBAR even without any financial interest in it. You should also be aware that certain US states continue to tax you after you leave the country, adding another layer of compliance beyond federal requirements.
Worked Example: When Only FBAR Applies
Maria moved from New York to Lisbon in 2025. She holds a CGD bank account (€22,000), a checking account at Millennium BCP (€5,000), and a multi-currency fintech account (€8,000 + $3,000). At year-end exchange rates, her aggregate foreign account value is approximately $41,000.
FBAR: Required (exceeds $10,000). Form 8938: Not required (below $200,000 expat single threshold). Maria files FinCEN Form 114 electronically but does NOT need Form 8938 with her 1040.
A Threshold Stuck in 1970
The $10,000 FBAR threshold has never been adjusted for inflation. It has been $10,000 since 1970. Adjusted to today's dollars, that 1970 threshold would be roughly $82,000. Congress has simply never updated it.
FBAR vs Form 8938: The Complete Comparison
The side-by-side comparison below covers every material difference between these two requirements, from legal basis and filing method to thresholds, asset coverage, and the actual current penalties. Print this table or bookmark it.
| Feature | FBAR (FinCEN Form 114) | Form 8938 (FATCA) |
|---|---|---|
| Legal basis | Bank Secrecy Act (31 USC § 5314) | IRC § 6038D |
| Administered by | FinCEN (Treasury) | IRS |
| Filed with | FinCEN BSA E-Filing System | Attached to Form 1040 |
| Due date | April 15 (auto-extension to Oct 15) | With tax return (incl. extensions) |
| Extension needed? | No, automatic | Follows tax return extension |
| Threshold (US resident, single) | $10,000 aggregate, any time | $50,000 last day / $75,000 any time |
| Threshold (US resident, MFJ) | $10,000 aggregate, any time | $100,000 last day / $150,000 any time |
| Threshold (expat, single) | $10,000 aggregate, any time | $200,000 last day / $300,000 any time |
| Threshold (expat, MFJ) | $10,000 aggregate, any time | $400,000 last day / $600,000 any time |
| Foreign bank accounts | Yes | Yes |
| Foreign securities accounts | Yes | Yes |
| Foreign stock NOT in account | No | Yes |
| Foreign partnership interests | No | Yes |
| Foreign hedge/PE funds | No | Yes |
| Foreign real estate (direct) | No | No |
| Foreign real estate (through entity) | No | Yes (entity value) |
| Social Security-type benefits | No | No |
| Signature-authority accounts | Yes | No |
| Foreign branch of US bank | Yes | No |
| Non-willful penalty | $16,536/report (inflation-adj.) | $10,000 per failure |
| Continued failure penalty | N/A | Up to $60,000 additional |
| Willful penalty | $165,353 or 50% of balance | Criminal penalties may apply |
| Valuation method | Maximum value during year | Fair market value |
| Exchange rate | End-of-calendar-year Treasury rate | End-of-taxable-year rate |
The Mental Model
FBAR casts a narrow net (only financial accounts) with a low threshold ($10,000). Form 8938 casts a wider net (accounts plus securities, partnerships, and entities) with a higher threshold ($200,000+ for expats). They overlap significantly, and most foreign bank accounts trigger both once you cross the relevant thresholds.
What Counts as a "Foreign Financial Account"?
The two forms cover overlapping but distinct sets of assets. Understanding exactly which assets fall under which requirement prevents both over-reporting and, more seriously, under-reporting.
Both FBAR and Form 8938 cover bank deposits (checking, savings, time deposits), custodial and securities accounts, foreign mutual funds, and foreign-issued life insurance or annuity contracts with a cash value.
FBAR captures things Form 8938 does not: branches of US banks in foreign countries, accounts where you have only signature authority (not financial interest), and indirect interests in accounts through entities you own more than 50% of.
Form 8938 reaches further in other directions. It covers foreign stock and securities not held in a financial account (think paper share certificates in a Portuguese company), foreign partnership interests, foreign hedge funds and private equity funds, and foreign real estate held through a foreign entity (you report the entity value, not the property value directly).
Neither form requires reporting of domestic mutual funds that invest in foreign stocks, foreign real estate held directly in your name, foreign currency held as physical cash, precious metals, or personal property abroad.
One area that remains unsettled: virtual currency and crypto. FinCEN issued a notice on December 31, 2020, stating that FBAR reporting for virtual currency was not yet required but might be in the future. As of March 2026, no final rule has been published. However, any fiat currency balance held on a foreign crypto exchange IS reportable on your FBAR. For Form 8938, cryptocurrency held through a foreign financial institution may be reportable depending on classification.
The Safety Deposit Box Question
Own physical gold bars in a Portuguese safety deposit box? Not reportable on either form. But the Portuguese bank account you use to pay the safety deposit box rental fee? That IS reportable on your FBAR if it contributes to exceeding $10,000 aggregate.
Thresholds: When Each Requirement Kicks In
FBAR uses a single $10,000 threshold for everyone regardless of filing status or residency. Form 8938 uses four separate threshold tiers depending on where you live and how you file. Confusing the two is one of the most common errors US expats make.
The FBAR threshold is $10,000 aggregate at ANY point during the calendar year. "Aggregate" means you take each account's maximum value during the year and add them up — even if the accounts peaked at different times. FinCEN's instructions ask you to record the maximum value of each account, then sum them. Two accounts that each peaked at $6,000 at different times of year produce $12,000 aggregate — FBAR required, even though they were never worth $12,000 simultaneously. Five accounts that each reached $3,000 at some point produce $15,000 aggregate — also required.
Form 8938 has two numbers per tier: a "last day" value and an "any time" value. For a single expat, if your specified foreign financial assets exceed $200,000 on December 31 OR $300,000 at any point during the year, you must file. For married filing jointly while abroad: $400,000 last day or $600,000 at any point.
To qualify for those higher expat thresholds, you must meet either the bona fide residence test or the physical presence test (330 full days in a foreign country during a 12-month period) under IRC § 911. Without meeting one of these tests, you fall back to the lower US-resident thresholds ($50,000/$75,000 single, $100,000/$150,000 MFJ).
Exchange rates: use the end-of-calendar-year Treasury Department rate from fiscaldata.treasury.gov for FBAR conversions. For Form 8938, use the end-of-taxable-year exchange rate.
Worked Example: MFJ Expats in Barcelona
James and Sarah (married filing jointly) moved from Austin to Barcelona. Their foreign accounts: CaixaBank joint account (€35,000), James's BBVA account (€12,000), Sarah's Bankinter savings (€20,000), joint multi-currency fintech account (€15,000 + $5,000).
FBAR: Each spouse reports accounts in which they have a financial interest. James's aggregate: €35,000 + €12,000 + €15,000 + $5,000 = approximately $73,000. Well above $10,000.
FBAR: Required for both spouses. Combined foreign assets approximately $92,000. Below $400,000 MFJ expat threshold. Form 8938: Not required.
Penalties: The Real Numbers (Inflation-Adjusted 2025)
Most sources on the internet still cite the $10,000 and $100,000 base statutory penalties. Those figures are wrong. FinCEN adjusts penalties for inflation annually, and the current enforcement amounts, effective January 17, 2025, are $16,536 (non-willful) and $165,353 (willful).
The inflation-adjusted FBAR penalty figures come from 31 CFR 1010.821, published in the Federal Register at 90 FR 5630, effective January 17, 2025. No 2026 adjustment had been published as of March 2026.
Non-willful FBAR violations: up to $16,536 per violation. Following the Supreme Court's Bittner ruling (see next section), this means per annual FBAR report, not per unreported account. For someone who missed 3 years of filing, the theoretical maximum non-willful exposure is $49,608.
Willful FBAR violations carry a penalty of the greater of $165,353 or 50% of the account balance at the time of the violation. Willful penalties were not addressed by the Bittner decision and may still be assessed per account per year. The government's position on per-account willful penalties remains aggressive.
Form 8938 penalties operate differently. Failure to file: $10,000 per failure. If you still haven't filed after receiving an IRS notice, an additional $10,000 accrues for each 30-day period of continued non-filing, up to $60,000 in total additional penalties. Criminal penalties may apply to both FBAR and FATCA violations under separate statutes (31 USC § 5322 for FBAR).
The IRS notes that "assertion of penalties depends on facts and circumstances," meaning they have discretion. Not every non-filer receives the maximum. But relying on discretion as a strategy is not a position we would recommend.
Statute of limitations: FBAR violations have a 6-year window from the due date of the report (per 31 USC § 5321(b)(1)). Form 8938 generally follows the tax return statute of limitations (3 years), but extends to 6 years if more than $5,000 in gross income from foreign assets was omitted. If a required Form 8938 was never filed, the statute of limitations remains open until 3 years after the form is eventually filed.
Check the eCFR, Not Google
The actual enforcement amounts change periodically. Always check 31 CFR 1010.821 on the eCFR website for current inflation-adjusted figures. FinCEN updates them under the Federal Civil Penalties Inflation Adjustment Act.
Bittner v. US: The Supreme Court Case That Changed FBAR Penalties
On February 28, 2023, the Supreme Court ruled 5-4 that non-willful FBAR penalties apply per report, not per unreported account. For US expats with multiple foreign accounts, this single decision reduced potential penalty exposure by as much as 80-90%.
Alexandru Bittner, a dual US-Romanian citizen, held 272 foreign accounts across 5 tax years. He filed late FBARs. The government's position: $10,000 penalty per unreported account, totaling $2.72 million. Bittner argued the statute imposed penalties per report, meaning $50,000 total ($10,000 for each of 5 late annual filings).
The Court agreed with Bittner. The penalty unit under the Bank Secrecy Act is the failure to file a timely and accurate FBAR. One FBAR is due per year. One penalty per year.
At the time of the Bittner ruling, the statutory base was $10,000 per report. With the January 2025 inflation adjustment, the current equivalent is $16,536 per report. What the Court explicitly did NOT address: willful penalties. The $165,353-or-50%-of-balance penalty for willful violations may still be assessed per account per year. Both Taft Law and Winston & Strawn have noted this distinction in their analysis of the opinion.
Worked Example: Before vs After Bittner
A US expat in Porto has 5 foreign accounts (bank, savings, investment, fintech, pension plan). They missed filing FBARs for 3 years.
Pre-Bittner (per-account): $16,536 × 5 accounts × 3 years = $248,040 maximum non-willful exposure.
Post-Bittner (per-report): $16,536 × 3 reports = $49,608 maximum non-willful exposure.
The Supreme Court reduced the maximum non-willful exposure by $198,432 in this scenario. A 80% reduction.
Why Bittner Matters More for Expats
Bittner is particularly relevant for expats in Portugal and Spain who often accumulate multiple accounts quickly: a local bank, a savings account, a fintech for international transfers, possibly a pension plan. Before Bittner, each account multiplied your penalty exposure. Now only the number of missed filing years matters for non-willful cases.
Your Accounts in Portugal and Spain: What's Reportable?
If you've moved from the US to Portugal or Spain, you likely opened local bank accounts within your first few weeks. Each one potentially triggers FBAR and Form 8938 obligations. The table below covers every common account type in both countries.
| Account Type | FBAR? | Form 8938? | Notes |
|---|---|---|---|
| Portuguese bank (CGD, Millennium, Novo Banco, ActivoBank) | Yes | Yes (if above threshold) | Standard foreign financial accounts |
| Spanish bank (CaixaBank, Santander, BBVA, Bankinter) | Yes | Yes (if above threshold) | Standard foreign financial accounts |
| Multi-currency fintech account (UK/EU-based) | Yes (conservative) | Yes (if above threshold) | No specific FinCEN ruling; treated as foreign since entities are non-US |
| Portuguese PPR (retirement savings) | Likely yes | Likely yes | No T1 guidance; conservative approach recommended |
| Spanish Plan de Pensiones | Likely yes | Likely yes | No T1 exemption for foreign pension plans |
| Seguranca Social (Portugal) | No | No | Explicitly exempt: Social Security-type program |
| Seguridad Social (Spain) | No | No | Explicitly exempt per IRS comparison table |
| Joint account with non-US spouse | Yes (entire account value) | Yes (if above threshold) | Financial interest = must report |
| Crypto on EU exchange (no fiat) | Not yet required | Possibly | FinCEN has not finalized crypto rule (2020 notice) |
| Crypto exchange with fiat balance | Yes (fiat portion) | Yes (if above threshold) | Fiat at foreign institution = reportable |
The PPR (Plano Poupanca Reforma) and Plan de Pensiones situation deserves specific attention. The IRS exempts accounts "held in a retirement plan of which you're a participant" from FBAR. Whether Portuguese PPR and Spanish Plan de Pensiones qualify for this exception is unsettled — the IRS has not issued specific guidance on these foreign plans. For Form 8938, the IRS is explicit: interests in foreign pensions and deferred compensation plans are reportable. The conservative approach, and the one most expat tax professionals recommend, is to report them on both forms. For a broader view of Portugal's tax system and how it affects Americans, see our complete US-Portugal financial guide. Our US-Spain financial guide covers the equivalent for Spain. For details on how Social Security coverage works between these countries, see our totalization agreement guide.
Retirees drawing from US accounts while living in Portugal face a different set of considerations around pension taxation. Our retiring in Portugal guide covers that side of the equation.
Spain Has Its Own Reporting Requirement
Spain requires tax residents with foreign assets above €50,000 (bank accounts, securities, or real estate in separate categories) to file Modelo 720 with the Agencia Tributaria by March 31. This is on top of your US FBAR and Form 8938 obligations. Yes, you may be reporting the same accounts to three different governments.
Social Security Contributions: The Clear Exemption
Your Portuguese or Spanish Social Security contributions (the mandatory payroll taxes) are NOT reportable on FBAR or Form 8938. The IRS comparison table contains an explicit row: "Social Security-type program benefits provided by a foreign government" with "No" in both columns. This is one of the rare clear-cut exemptions in international tax reporting.
Behind on Filing? Your Amnesty Options
The IRS offers multiple paths back into compliance, and the most favorable one for expats carries zero penalties. If your failure to file was non-willful, you can catch up without paying a cent in penalties through the Streamlined Foreign Offshore Procedures.
Streamlined Foreign Offshore Procedures (SFOP)
This is the primary remediation path for US taxpayers who have been living outside the US and non-willfully failed to report foreign assets. The IRS defines the requirements clearly:
- Non-residency test: In at least 1 of the most recent 3 tax years, you must have had no US abode AND been physically outside the US for at least 330 full days.
- What you file: 3 years of amended or delinquent tax returns (Form 1040) plus all required information returns (Forms 3520, 5471, 8938) plus 6 years of delinquent FBARs.
- Penalties: Zero. The IRS page states directly: "The taxpayer will not be subject to failure-to-file and failure-to-pay penalties, accuracy-related penalties, information return penalties, or FBAR penalties."
- Complete Form 14653 (Certification by US Person Residing Outside the US).
- Write "Streamlined Foreign Offshore" in red at the top of each return.
- File FBARs electronically via BSA E-Filing. Select "Other" as reason for filing late, enter "Streamlined Filing Compliance Procedures."
You are ineligible if the IRS has already initiated a civil examination of your returns for any year, or if you are under criminal investigation. The program is still active as of February 2026 (IRS page last reviewed 2026-02-19). There is no closing agreement. Returns are processed like normal filings.
Delinquent FBAR Submission Procedures (DFSP)
This simpler path works when you properly reported all income and paid all tax on your US returns but simply forgot to file FBARs. File late FBARs via BSA E-Filing with an explanation of why you are filing late. The IRS states it "will not impose a penalty" if income was properly reported and you are not under examination or investigation.
Voluntary Disclosure Practice
For those with concerns about willful conduct. This provides protection from criminal prosecution but involves higher costs and a more involved process. This is the path for serious non-compliance, not for someone who simply was unaware of their FBAR obligation.
Worked Example: Delinquent FBAR Submission
Elena, a US citizen, moved to Porto in 2023 and has never filed FBARs. She has €25,000 across two Portuguese bank accounts. She properly reported her worldwide income on her US tax returns every year.
Best option: Delinquent FBAR Submission Procedures. She files late FBARs for 2023, 2024, and 2025 via BSA E-Filing and explains she was unaware of the requirement. Because she reported all income correctly: zero penalties expected.
Worked Example: Streamlined Procedures
David, a US citizen, moved to Madrid in 2022. He did NOT file US tax returns for 2022-2025 and did not file FBARs. He has a Spanish bank account with €40,000.
Best option: Streamlined Foreign Offshore Procedures. He files 3 years of delinquent 1040s plus 6 years of FBARs plus Form 14653. He meets the non-residency test (physically in Spain 330+ days) and his failure was non-willful. Result: zero penalties.
The Window Could Close
The Streamlined programs have been active since 2014. The IRS has never announced a sunset date, but they could close them at any time. If you are behind on filing, the best time to catch up was yesterday. The second-best time is now.
Filing Calendar and Step-by-Step Process
FBAR and Form 8938 follow similar but not identical calendars. The key difference: FBAR has an automatic extension that requires no action on your part. Form 8938 follows your tax return's extension.
| Date | What's Due | Where to File | Notes |
|---|---|---|---|
| April 15 | FBAR (FinCEN 114) | BSA E-Filing (bsaefiling.fincen.treas.gov) | Automatic extension to Oct 15, no request needed |
| April 15 | Form 1040 + Form 8938 | IRS (electronic or mail) | Request extension with Form 4868 if needed |
| June 15 | Auto extension for expats (1040) | IRS | 2-month automatic extension for US citizens abroad |
| October 15 | FBAR extension deadline | BSA E-Filing | Final FBAR deadline, no further extension available |
| October 15 | 1040 extension deadline + Form 8938 | IRS | If you filed Form 4868 |
FBAR Filing: Step by Step
- Gather the maximum value of each foreign financial account during the calendar year.
- Convert each value to USD using the end-of-year Treasury exchange rate (available at fiscaldata.treasury.gov).
- Add up the aggregate. If it exceeds $10,000, you must file.
- Go to bsaefiling.fincen.treas.gov.
- You do NOT need to register for a BSA E-Filing account. Individuals can file without registering.
- Complete FinCEN Form 114 online.
- Submit electronically and keep your confirmation for records.
- Retain all supporting records for 5 years from the FBAR due date.
Form 8938 Filing: Step by Step
Calculate the fair market value of all specified foreign financial assets on the last day of your tax year. Also note the highest value at any point during the year. Compare both figures to your threshold (based on filing status plus US vs abroad residency). If above either threshold, complete Form 8938 and attach it to your Form 1040. If you are claiming the Foreign Earned Income Exclusion or Foreign Tax Credit, those elections appear on your 1040 alongside Form 8938.
You Can File FBAR Yourself
FBAR is a straightforward online form that does not require a tax preparer. But if you also need Form 8938, you are already filing an expat tax return with foreign income. US returns with foreign income exclusions, foreign tax credits, and treaty positions are complex. That is where professional help typically earns its fee.
The 10 Most Dangerous Misconceptions
We encounter these wrong beliefs constantly. Each one can lead to missed filings, unnecessary penalties, or both. If you recognize yourself in any of these, it is time to revisit your filing obligations.
1. "I don't owe tax so I don't need to report." FBAR is a reporting requirement regardless of whether tax is owed. The IRS states: "Whether the account produced taxable income has no effect on whether the account is a foreign financial account for FBAR purposes."
2. "My account never had $10,000 in it." The threshold is aggregate across ALL foreign accounts. Two accounts with $6,000 each produce $12,000 aggregate. FBAR required for both accounts.
The third mistake trips up even people who think they're compliant. "I filed FBAR so I don't need Form 8938." You may need both. The IRS explicitly states: "The Form 8938 filing requirement does not replace or otherwise affect a taxpayer's obligation to file FinCEN Form 114."
4. "My foreign spouse's accounts aren't my problem." If you hold financial interest in or signature authority over joint accounts with your spouse, you must report them on YOUR FBAR.
5. "My multi-currency fintech account isn't a foreign account." If the entity holding your funds is incorporated outside the US (as most UK or EU fintech companies are), the conservative and widely recommended position treats those balances as foreign financial accounts for FBAR purposes. FinCEN has not issued specific guidance on fintechs. Consult a tax professional.
Number six often comes up in crypto forums. "Crypto on a foreign exchange needs FBAR reporting." Not yet. FinCEN stated in 2020 that FBAR reporting for virtual currency was not yet required. No final rule has been published as of March 2026. However, any fiat currency balance on that foreign exchange IS reportable.
7. "Non-willful FBAR penalties are $10,000 per account." Two corrections: (a) the current inflation-adjusted amount is $16,536, not $10,000, and (b) per Bittner v. US (2023), the penalty is per report (one per year), not per account.
8. "The penalties are so high I can never get into compliance." Streamlined Foreign Offshore Procedures carry zero penalties for qualifying expats. Delinquent FBAR Submission Procedures also carry no penalty if income was properly reported. The on-ramp back to compliance is far less painful than most people assume.
9. "My Portuguese/Spanish Social Security contributions are reportable." No. Social Security-type program benefits from a foreign government are explicitly not reportable on either FBAR or Form 8938 per the IRS comparison table.
10. "I missed April 15 so I need to file for an extension." FBAR has an automatic extension to October 15 with no request needed. You do not need to do anything to get the extra time.
Frequently Asked Questions
Sources
- IRS — Comparison of Form 8938 and FBAR Requirements. Side-by-side comparison of thresholds, asset coverage, and penalties. irs.gov
- FinCEN — Report Foreign Bank and Financial Accounts. Official FBAR reporting page covering who must file, thresholds, and filing instructions. fincen.gov
- IRS — Report of Foreign Bank and Financial Accounts (FBAR). Main IRS FBAR page covering requirements, penalties, and discretion language. irs.gov
- IRS — Streamlined Filing Compliance Procedures. Overview of all streamlined compliance options for taxpayers behind on filing. irs.gov
- IRS — US Taxpayers Residing Outside the United States (Streamlined Foreign Offshore). Specific procedures, requirements, and penalty waiver terms for expats. irs.gov
- IRS — Delinquent FBAR Submission Procedures. Path for filing late FBARs when income was properly reported. irs.gov
- eCFR — 31 CFR 1010.821. Current inflation-adjusted FBAR penalty table: $16,536 non-willful, $165,353 willful. ecfr.gov
- Federal Register — FinCEN Inflation Adjustment of Civil Monetary Penalties (90 FR 5630). January 17, 2025 penalty adjustment notice. federalregister.gov
- Bittner v. United States, 598 U.S. ___ (2023). Supreme Court opinion establishing per-report (not per-account) non-willful FBAR penalties. supreme.justia.com
- Taft Law — Bittner v. United States Analysis. Legal analysis of the ruling's impact on non-willful penalty calculations. taftlaw.com
- Winston & Strawn — Bittner FBAR Penalty Dispute Analysis. Analysis confirming willful penalties were not addressed by the ruling. winston.com
- IRS — Bona Fide Residence Test. Requirements for qualifying as a bona fide resident of a foreign country under IRC § 911. irs.gov