How to File FBAR as a US Citizen Abroad in 2026: Exact Steps & Penalties

Natasha Brown's situation is common. She had a UK checking account with around $14,000 and a small savings account with roughly $3,500. Combined, that's $17,500—well over the $10,000 threshold. She almost missed the filing because she thought only tax forms mattered. The FBAR is filed electronically through the BSA E-Filing System, not with your 1040. The deadline is June 30, with no extensions available. If you miss it, the penalty can be $12,921 per violation (adjusted for inflation in 2026). That's per account, per year.

Who exactly must file an FBAR?

Any US citizen, resident, or entity with a financial interest in or signature authority over foreign financial accounts totaling more than $10,000 at any point during the calendar year must file. This includes bank accounts, brokerage accounts, mutual funds, and even some insurance policies with cash value. The threshold is aggregate—meaning you add up all accounts, not each one individually. So if you have $6,000 in a German bank and $5,000 in a French bank, you're over the limit and must file.

• 1. The $10,000 threshold applies to the aggregate value of all foreign accounts, not each account individually (IRS, FBAR Reference Guide 2026).
• 2. Accounts include checking, savings, brokerage, mutual funds, and certain insurance policies with cash surrender value.
• 3. Signature authority over a business account also counts—even if you don't own the money.
• 4. Joint accounts with a non-US spouse are reportable if you're a US person.
• 5. The deadline is June 30, 2026 for the 2025 tax year—no extensions available.

What counts as a foreign financial account?

A foreign account is any account maintained by a financial institution located outside the United States. This includes branches of US banks located abroad. For example, a Citibank branch in London counts as a foreign account. The key is the physical location of the institution, not the currency. So a euro-denominated account at a US bank in New York is not foreign. But a dollar-denominated account at a bank in Switzerland is foreign.

What about accounts held jointly with a spouse?

If you and your spouse jointly own a foreign account, you can file a single FBAR reporting both owners. This simplifies the process. However, if you have separate accounts, each spouse must file their own FBAR. The $10,000 threshold applies to each person's aggregate accounts separately. So if you have $8,000 and your spouse has $8,000 in separate accounts, neither of you needs to file individually. But if you have $12,000 in your name alone, you must file.

Pull your free credit report at AnnualCreditReport.com to check for any identity theft issues that might affect your foreign accounts. Also, review the official FBAR instructions at IRS.gov FBAR page for the most current guidance.

In short: FBAR is a separate filing from your tax return, due June 30, for anyone with over $10,000 in foreign accounts—aggregate, not per account.

Step 1: Gather your account information

Before you start, collect the following for each foreign account: account number, name and address of the financial institution, maximum balance during the calendar year, and account type (checking, savings, brokerage, etc.). The maximum balance is the highest amount in the account at any point during the year—not the year-end balance. For example, if you had $15,000 in June but only $2,000 in December, you report $15,000.

Step 2: Determine if you need to file

Add up the maximum balances of all your foreign accounts. If the total exceeds $10,000 at any point during the year, you must file. Remember: this includes accounts you own jointly, accounts where you have signature authority (even if you don't own the money), and accounts held by entities you control (like a foreign corporation or trust).

Step 3: Access the BSA E-Filing System

Go to the BSA E-Filing System website (bsaefiling.fincen.treas.gov). You'll need to create an account if you haven't filed before. The system is maintained by FinCEN, not the IRS. You'll file FinCEN Form 114 electronically. There is no paper option for individual filers. The system is straightforward: you enter your personal information, then add each account one by one.

Step 4: Complete FinCEN Form 114

The form asks for your name, address, Social Security number (or ITIN), and then a schedule of accounts. For each account, you'll enter: the country where the account is located, the name of the financial institution, the account number, the type of account, and the maximum value during the year. Values are reported in US dollars. If your account is in a foreign currency, use the Treasury Department's exchange rate for the year-end. For 2025, the average exchange rate for the euro was roughly $1.08 per euro.

Step 5: Review and submit

Before submitting, review every entry. A typo in an account number can trigger a penalty. The system will give you a confirmation number. Save this. It's your proof of filing. The deadline is June 30, 2026, for the 2025 calendar year. There are no extensions. If you miss the deadline, file as soon as possible. The IRS has a streamlined filing procedure for non-willful violations that can reduce penalties.

What if I have multiple accounts in the same country?

You list each account separately on the form. There is no shortcut. If you have five accounts in the UK, you enter five lines. The system allows you to add accounts one by one. It's tedious but necessary. The penalty for omitting an account is $12,921 per violation.

What if I live in a country with strict financial secrecy laws?

You are still required to file. The US government has agreements with most countries to share financial information under FATCA (Foreign Account Tax Compliance Act). If your bank refuses to provide statements, you must estimate the maximum balance to the best of your ability. Document your efforts to obtain the information. This can help in case of an audit.

Your next step: Go to BSA E-Filing System and create your account today. Don't wait until June.

In short: Filing FBAR takes 30 minutes online through the BSA E-Filing System—gather account data, enter it, submit by June 30, and save your confirmation.

Hidden Risk #1: The $10,000 threshold is per year, not per account

This is the most common trap. Expats think they're safe because no single account hits $10,000. But the threshold is aggregate. If you have $6,000 in a UK bank and $5,000 in a German bank, you're over. The penalty for not filing is $12,921 per account. That's $25,842 for two accounts. And that's just for one year. If you've missed multiple years, the penalties stack.

Hidden Risk #2: Signature authority counts

If you have signature authority over a foreign business account—even if you don't own the money—you must file. This catches many executives, trustees, and even parents who help manage a child's account abroad. The account is reportable if you can sign checks or make withdrawals. The penalty applies the same way.

Hidden Risk #3: No extensions available

Unlike your tax return, the FBAR deadline of June 30 is hard. No extensions. No exceptions. If you miss it, you're late. The IRS does have a streamlined filing procedure for non-willful violations, but it requires you to certify that the failure was due to negligence, not intentional. If the IRS determines the violation was willful, the penalty jumps to $129,210 or 50% of the account balance.

Hidden Risk #4: State tax implications

Some states, like California and New York, have their own foreign account reporting requirements. California's FTB requires disclosure of foreign accounts if the aggregate exceeds $10,000. New York has similar rules. If you live in one of these states, you may need to file a separate state-level form. The penalty for missing the state filing can be additional. Check your state's tax authority website.

Hidden Risk #5: The cost of professional help

Many expats hire a CPA or tax attorney to handle FBAR filing. Fees range from $500 to $2,500 per year, depending on complexity. For someone with a single foreign account, the cost might be around $500. For someone with multiple accounts, business interests, or past non-compliance, fees can exceed $5,000. However, the cost of a penalty is far higher. A one-time $500 fee is cheap compared to a $12,921 penalty.

What about the risk of double taxation?

FBAR is not a tax form—it's a reporting form. You don't pay tax on the account balance. However, the income earned in those accounts (interest, dividends, capital gains) is taxable on your US tax return. If you're living abroad, you may qualify for the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC) to avoid double taxation. But you still must report the income. Failing to report foreign income can trigger additional penalties under the CARD Act and TILA.

In short: The biggest hidden risk is the $12,921 per account penalty for missing the FBAR deadline—but the streamlined filing procedure can reduce that to 5% of your balance.

FBAR vs. FATCA: What's the difference?

Many expats confuse FBAR with FATCA (Foreign Account Tax Compliance Act). FBAR is a Treasury form filed by individuals. FATCA is a separate law that requires foreign banks to report US account holders to the IRS. You don't file FATCA—your bank does. But if your bank reports your account under FATCA, the IRS knows about it. That increases your audit risk if you don't file FBAR.

✅ Best for: US citizens living abroad with foreign accounts over $10,000. Also best for expats who want to avoid audit risk and penalties.

❌ Not ideal for: Those with accounts under $10,000 (no filing needed). Also not ideal for those who have willfully hidden accounts—they need a tax attorney, not a DIY guide.

The math: Three scenarios

Scenario 1: You have $15,000 in a single UK account. You file FBAR on time. Cost: $0. Penalty if you don't file: $12,921. Net benefit of filing: $12,921.

Scenario 2: You have $8,000 in a German account and $4,000 in a French account. You think you're under the threshold. You don't file. Penalty: $25,842 (2 accounts × $12,921). If you file late under the streamlined procedure, penalty: 5% of $12,000 = $600. Net savings: $25,242.

Scenario 3: You have $200,000 in a Swiss account. You haven't filed for 5 years. Willful penalty: 50% of $200,000 = $100,000 per year × 5 years = $500,000. Streamlined filing (if non-willful): 5% of $200,000 = $10,000. Net savings: $490,000.

Your next step: Go to BSA E-Filing System and file your FBAR today. If you need help, consider a CPA who specializes in expat taxes. The cost is worth the peace of mind.

In short: FBAR filing is free and simple for most expats—the penalty for missing it is $12,921 per account, so file by June 30.