FBAR and Foreign Income Reporting
Foreign account reporting carries some of the heaviest penalties in the US tax code, and the thresholds are lower than most people assume.
FBAR and Foreign Income Reporting with EvoTax
If you are a US citizen, green card holder or tax resident with accounts outside the United States, two separate reporting regimes may apply and they are commonly confused. The FBAR, FinCEN Form 114, is triggered when the combined highest balance of your foreign financial accounts exceeds $10,000 at any point in the year — an aggregate test across all accounts, not per account, and one that a single transfer can breach without your balance ever really being that high. Form 8938 under FATCA is a different form with different and higher thresholds, filed with your tax return rather than separately. Both can be required for the same year. EvoTax identifies which apply, reports your foreign income with the foreign tax credit or treaty relief that prevents double taxation, and where years have been missed assesses whether a streamlined or delinquent-filing procedure can bring you current without the worst of the penalties.
Benefits & What You Get
Both regimes assessed separately
FBAR and Form 8938 have different thresholds and different filing routes. We determine each rather than conflating them.
The aggregate test applied properly
The $10,000 FBAR threshold is across all accounts at their highest balances, which catches people who never felt wealthy.
Double taxation relieved
Foreign tax credits and treaty provisions applied so income taxed abroad is not taxed again in full.
Catch-up routes for missed years
Where filings were missed non-wilfully, streamlined and delinquent procedures can resolve it at greatly reduced cost.
Foreign assets others overlook
Provident funds, foreign pensions, life policies with cash value and mutual funds are frequently reportable and frequently missed.
How It Works
Inventory your accounts
We list every foreign financial account and asset with its highest balance during the year.
Determine what applies
We establish whether FBAR, Form 8938 or both are required, and identify any additional forms.
Report and relieve
We file the reports and claim foreign tax credits or treaty relief on the income involved.
Resolve prior years
Where years are missing, we assess the appropriate catch-up procedure and file under it.
Pricing
Up to 5 foreign accounts
Filed with your tax return
Including foreign tax credit computation
Multiple missed years, quoted on scope
Final pricing depends on the complexity of your case. Contact us for an exact quote.
Frequently Asked Questions
Who has to file an FBAR?
Any US person — citizen, green card holder or tax resident, and also entities — whose foreign financial accounts had a combined highest balance exceeding $10,000 at any point in the calendar year. It includes accounts you do not own but have signature authority over. The test is aggregate and uses the highest balance during the year, so briefly holding a larger sum, or moving money between two accounts, can trigger it.
What is the difference between FBAR and Form 8938?
They are separate obligations. The FBAR is FinCEN Form 114, filed electronically with the Treasury and not part of your tax return, with the $10,000 aggregate threshold. Form 8938 is a FATCA disclosure filed with your tax return, with higher thresholds that vary by filing status and whether you live abroad, and it covers a wider class of assets than just accounts. Many people must file both, reporting overlapping information.
When is the FBAR due?
15 April, aligned with the tax return deadline, with an automatic extension to 15 October that you do not have to request. It is filed separately from your return through the FinCEN BSA E-Filing system, which is why it is possible to file your tax return on time and still miss the FBAR entirely.
What are the penalties for not filing an FBAR?
Severe, and assessed per account per year. Non-wilful failures attract a substantial penalty per violation, while wilful failures can reach the greater of a fixed statutory amount or 50% of the account balance, with criminal exposure in the worst cases. This asymmetry — a modest account generating a penalty far larger than any tax involved — is why the filing itself matters more than the amounts.
I have not filed FBARs for past years. What should I do?
Address it deliberately rather than either ignoring it or simply back-filing. If the failure was non-wilful, the Streamlined Filing Compliance Procedures allow you to become compliant with a much reduced or, for those living abroad, waived penalty. If no tax was owed and only the reports were missed, the Delinquent FBAR Submission Procedures may resolve it without penalty. What matters is choosing the right route before contact from the IRS, because the options narrow considerably afterwards.
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