If you forgot to file your FBAR (Foreign Bank Account Report, FinCEN Form 114) on time, you’re not alone—and there may still be a way to avoid penalties. The IRS and FinCEN provide relief through the Delinquent FBAR Submission Procedures, which allow eligible taxpayers to get caught up without facing harsh fines. This guide explains when you can use the delinquent procedures, how to file, and how to reduce or eliminate penalties.
🕓 When Is an FBAR Considered Late?
For the 2025 tax year, the FBAR is due on April 15, 2026, with an automatic extension to October 15, 2026. If you miss that extended deadline, your FBAR is officially late—regardless of intent.
🛡️ What Are the Delinquent FBAR Submission Procedures?
The Delinquent FBAR Procedures are a method of late filing that allows taxpayers to submit overdue FBARs without incurring penalties, provided that:
- You were not previously contacted by the IRS about a late FBAR
- You are not under civil examination or criminal investigation by the IRS
- You have not previously filed amended returns to report unreported income
- You have properly reported all income related to the foreign accounts on your U.S. tax return
If all these conditions apply, the IRS will not impose FBAR penalties for late filings.
📋 Step-by-Step: How to Submit a Delinquent FBAR
Step 1: Gather Your Account Details
- Account numbers
- Bank names and addresses
- Maximum balances during the year (converted to USD using Treasury FX rates)
- Type of account (e.g., bank, securities, pension)
Step 2: Log in to the BSA E-Filing System
- Visit the BSA E-Filing System
- Create an account or proceed as a guest filer
- Use FinCEN Form 114 for each delinquent year
Step 3: Complete the FBAR Form for Each Year
- Enter accurate account information and currency conversions
- Use the highest value during the calendar year—not year-end balances
Step 4: Include a Statement of Explanation
In the section labeled “Explanation for Late Filing,” briefly state why the FBAR is being filed late. Acceptable reasons may include:
- Unawareness of the FBAR requirement
- First-time filer confusion
- Clerical or administrative oversight
Step 5: Submit and Retain Confirmation
- Submit each FBAR electronically through the BSA system
- Download the submission confirmation for your records
- Keep all documentation related to your late filing
⚠️ What If You Don’t Qualify for Delinquent Procedures?
If you did not report foreign income or are already under audit, the IRS may deny you access to the penalty-free program. In such cases, you may need to use:
- Streamlined Filing Compliance Procedures (for non-willful violators)
- Voluntary Disclosure Program (VDP) (for willful noncompliance)
These options can still reduce penalties compared to IRS-imposed fines but may involve amended tax returns and certifications of non-willfulness.
💰 Penalties for Late or Noncompliant FBARs
- Non-willful violations: Up to $10,000 per account per year
- Willful violations: Greater of $100,000 or 50% of the account balance
- Criminal penalties: May apply for fraud, evasion, or concealment
🧠 Tips to Avoid Future FBAR Issues
- Set annual reminders for April and October filing deadlines
- Maintain a list of foreign accounts and currencies
- Use official Treasury exchange rates to calculate USD values
- Work with a tax advisor familiar with foreign reporting
✅ Summary
Missing the FBAR filing deadline doesn’t have to result in penalties—especially if you act quickly and meet the IRS criteria for delinquent FBAR submission. Use the BSA E-Filing system to submit past-due forms, provide an explanation, and stay compliant going forward. For more complicated cases, explore options like the Streamlined Procedures or the Voluntary Disclosure Program with professional help.
