Many U.S. persons living abroad or holding a green card are unaware of their obligations to report foreign financial accounts under the FBAR (Foreign Bank Account Report) rules. Whether you reside in the United States or abroad, if you meet the definition of a U.S. person for tax purposes, you may be required to file FinCEN Form 114. This guide clarifies who must file the FBAR in 2025, with special attention to green card holders and U.S. citizens living overseas.
👥 Who Is Considered a “U.S. Person” for FBAR Purposes?
According to FinCEN and IRS guidelines, a “U.S. person” includes:
- U.S. citizens (regardless of where they live)
- Lawful Permanent Residents (Green Card holders)
- Residents under the substantial presence test
- U.S. entities such as corporations, partnerships, LLCs, trusts, and estates
If you fall into any of the categories above and hold foreign financial accounts that meet the reporting threshold, you must file an FBAR—even if you are living abroad permanently.
🌍 FBAR Requirements for U.S. Expats Living Abroad
U.S. citizens living abroad are still required to report worldwide income and foreign financial accounts. The same $10,000 threshold applies to expats. The location of the person does not affect the filing requirement.
- Even if your foreign accounts are used for everyday living expenses in your resident country
- Even if the accounts are in your spouse’s or employer’s name, but you have signature authority
- Even if the account is jointly owned with a non-U.S. person
🛂 FBAR Requirements for Green Card Holders
Green Card holders are treated as U.S. tax residents, even if they live overseas or intend to abandon their U.S. residency in the future. Therefore:
- If you are a lawful permanent resident at any time during the year, you must file FBAR if the threshold is met
- You must report all foreign bank accounts, regardless of purpose or location
- You may also be subject to filing Form 8938 (FATCA) and U.S. income tax returns
Example: A Green Card holder living in Germany with €12,000 in a local checking account must file FBAR in 2025 if the converted USD value ever exceeds $10,000 during the year.
💵 What Is the FBAR Filing Threshold?
If the aggregate value of all foreign financial accounts exceeds $10,000 USD at any point during the calendar year (even for one day), you must file FinCEN Form 114.
- This includes checking, savings, mutual funds, brokerage, pension accounts, and foreign life insurance with cash value
- You must report the maximum balance during the year, converted to USD using the Treasury’s year-end exchange rate
📝 How and When to File FBAR
The FBAR must be filed electronically using the BSA E-Filing System. It is separate from your IRS income tax return and is not filed with Form 1040.
- Deadline: April 15, 2026 (automatic extension to October 15, 2026)
- No tax is due with the FBAR—it is for informational reporting only
- Noncompliance can result in civil and criminal penalties
⚠️ What If You Don’t File?
Failure to file an FBAR can result in the following penalties:
- Non-willful violations: Up to $10,000 per account per year
- Willful violations: Greater of $100,000 or 50% of account value per year
- Criminal charges: May apply for willful neglect, fraud, or concealment
🔁 Other Forms to Consider
In addition to the FBAR, you may be required to file other foreign-related forms:
- Form 8938 (FATCA): If foreign assets exceed certain thresholds (varies by filing status and residency)
- Form 8621: For interests in Passive Foreign Investment Companies (PFICs)
- Form 3520/3520-A: For foreign trusts and gifts from foreign persons
✅ Summary
If you are a U.S. citizen, green card holder, or tax resident—even while living abroad—you must file an FBAR if your aggregate foreign account balance exceeded $10,000 at any time in the year. This rule applies regardless of your country of residence or how the accounts are used. Use the BSA E-Filing portal to submit your FinCEN Form 114 and stay in full compliance with U.S. tax law. For complex international situations, consult a tax advisor familiar with expatriate and foreign asset reporting.
