FBAR Penalty Calculator 31 USC § 5321

FBAR (Foreign Bank Account Report) is FinCEN Form 114 that must be filed annually by U.S. persons who have financial interest in or signature authority over foreign accounts if the aggregate value exceeds $10,000 at any time during the year. This includes bank accounts, securities accounts, and other financial accounts held outside the United States.

In Bittner v. United States (2023), the Supreme Court ruled that non-willful FBAR penalties apply per annual report, not per account. Previously, the IRS assessed separate penalties for each unreported account. Under Bittner, if you failed to file one FBAR covering 10 accounts, you face one penalty (~$16,536 for 2025), not 10 separate penalties. This dramatically reduces non-willful penalties.

Non-willful violations occur when you failed to file through negligence, inadvertence, or mistake. The penalty is up to $16,536 per report (2025). Willful violations involve intentional failure to file or knowingly submitting false information. Willful penalties are severe: the greater of $165,353 or 50% of the account balance, assessed per account. Criminal penalties may also apply.

The IRS offers two streamlined programs for taxpayers to come into compliance: SDOP (Streamlined Domestic Offshore Procedures) for U.S. residents requires a 5% penalty on highest account balance over 6 years. SFOP (Streamlined Foreign Offshore Procedures) for qualifying expatriates has NO penalty. Both require certifying that the failure was non-willful.

The FBAR is due April 15 with an automatic extension to October 15. Unlike tax returns, you do not need to file for the extension - it is automatic. The FBAR for tax year 2024 is due April 15, 2025 (or October 15, 2025 with automatic extension).

The IRS has 6 years from the original due date of the FBAR to assess civil penalties. For an FBAR due April 15, 2020, the IRS could assess penalties through April 15, 2026. There is no statute of limitations for willful violations that constitute criminal conduct.

Yes, but the standard is higher than for domestic tax penalties. You must demonstrate ordinary business care and prudence. Reliance on a tax professional for FBAR filing deadlines is generally NOT reasonable cause (unlike tax return filing). However, reliance on a professional who reviewed your accounts and advised no FBAR was required may qualify.

For taxpayers who properly reported all income and paid all tax, but simply failed to file FBARs, the IRS offers a "quiet disclosure" option. File the late FBARs with a statement explaining why they are late. While not officially penalty-free, the IRS generally does not impose penalties for low-risk cases where tax compliance is otherwise perfect.