The Foreign Bank Account Report, commonly known as FBAR, is a crucial filing requirement for U.S. persons who hold or have signature authority over foreign financial accounts. Formally filed as FinCEN Form 114, the FBAR aims to prevent offshore tax evasion and ensure financial transparency. If you’re an expat, a dual citizen, or a U.S. taxpayer with overseas assets, here’s everything you need to know about FBAR filing for the 2025 tax year.
🌍 What Is FBAR?
The FBAR (Foreign Bank Account Report) is a disclosure requirement—not a tax return. It must be filed electronically with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury—not the IRS.
Its official form name is FinCEN Form 114, and it’s separate from your annual income tax return (Form 1040).
💲 Who Must File an FBAR?
You must file an FBAR for 2025 if all of the following are true:
- You are a U.S. citizen, resident, green card holder, or domestic entity (LLC, trust, corporation, etc.)
- You had financial interest in or signature authority over one or more foreign financial accounts
- The aggregate value of all such accounts exceeded $10,000 at any time during 2025
🏦 What Accounts Are Reportable?
You must report both financial ownership and signature authority over foreign accounts such as:
- Checking and savings accounts at foreign banks
- Investment and brokerage accounts
- Mutual funds, pensions, and retirement accounts
- Foreign insurance policies with cash value
- Foreign-held cryptocurrency (if held in a financial institution—status pending formal FinCEN guidance)
📅 FBAR Deadline for 2025
The filing deadline for FBAR (FinCEN 114) is:
- April 15, 2026 – original due date
- Automatic extension to October 15, 2026 – no separate request required
🧮 How to File FinCEN Form 114
Use the BSA E-Filing System to submit your FBAR online:
- Visit bsaefiling.fincen.treas.gov
- Create an account or use the “File FBAR as Individual” option
- Enter details of each account (bank name, max value in USD, account number, etc.)
- Submit the form and save your confirmation
💵 How to Value Your Foreign Accounts
Use the highest balance during the year (not the year-end balance). Convert foreign currency to USD using the U.S. Treasury’s official exchange rate on December 31, 2025. Don’t average balances.
🔁 Amending or Filing Late FBARs
If you forgot to file, or need to correct a submission:
- Use the “Amended FBAR” option in the BSA system
- If delinquent, follow Delinquent FBAR Submission Procedures and include a reasonable cause statement
- Consult a tax advisor if you may qualify for Streamlined Filing Compliance or Voluntary Disclosure programs
⚠️ Penalties for Noncompliance
Failure to file FBAR can result in steep penalties:
- Non-willful violations: up to $10,000 per unreported account
- Willful violations: the greater of $100,000 or 50% of account balance, per violation
- Criminal penalties and jail time may apply for deliberate concealment
👨👩👧 Joint Accounts and Signature Authority
Married couples may file jointly if both have reportable accounts. Individuals with signature authority but no ownership—such as employees or directors—must also file, unless an exception applies.
🌐 FBAR vs. Form 8938 (FATCA)
Don’t confuse the FBAR with Form 8938 (Statement of Foreign Financial Assets), which is filed with your tax return if you meet higher thresholds.
- FBAR: file with FinCEN, $10,000 aggregate threshold
- Form 8938: file with IRS, higher thresholds (e.g., $50,000 for single, $100,000 joint at year-end)
- You may need to file both
📌 Final Tips for 2025 FBAR Compliance
- Keep complete records of all foreign accounts for at least 5 years
- Use the official BSA portal—not the IRS—to file
- Do not report U.S.-based foreign currency accounts
- Consult a tax professional for complex situations (trusts, crypto, businesses, dual residency)
✅ Conclusion
FBAR compliance is essential if you have foreign financial accounts exceeding $10,000 at any point in 2025. Filing Form 114 through the BSA E-Filing system helps avoid harsh penalties and keeps you in compliance with U.S. reporting requirements. If you’re unsure whether you qualify, speak to a cross-border tax specialist before the April 15, 2026 deadline.
