---
title: What Happens If You Fail to Report a Foreign Bank Account?
description: FBAR penalties can apply when foreign bank accounts go unreported. What triggers the filing requirement, and what happens if an FBAR is missed?
---

[Tax Law Blog ](https://www.fedortax.com/blog)

# [What Happens If You Fail to Report a Foreign Bank Account?](https://www.fedortax.com/blog/when-you-fail-to-report-a-foreign-bank-account)

 Written by [on behalf of Robert J. Fedor, Esq., L.L.C.](https://www.fedortax.com/blog/author/on-behalf-of-robert-j-fedor-esq-llc) | Jan 15, 2026 4:39:53 PM

Above a certain threshold, assets held in [offshore or foreign bank accounts](https://www.fedortax.com/blog/what-is-an-offshore-tax-haven) must be reported to the Internal Revenue Service (IRS). The [Report of Foreign Bank Account and Financial Accounts (FBAR)](https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar) is reported each year through the [Financial Crimes Enforcement Network (FinCEN)](https://www.fincen.gov/) website.

 

Regarding [eligibility thresholds](https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar), a U.S. person who has a financial interest in, or signature authority over, a financial account held outside the United States that exceeds $10,000 at any time during a calendar year is required to [file an FBAR](https://www.fedortax.com/blog/understand-the-procedure-for-filing-a-late-fbar). This requirement also applies if the combined value of multiple accounts exceeds $10,000 during the year. FBAR reports are due April 15 each year, with an automatic extension to October 15 of the same year.

 

## **Why you should submit an accurate and timely FBAR report **

[The Bank Secrecy Act (BSA)](https://www.fincen.gov/resources/statutes-and-regulations/bank-secrecy-act) is the legislation that requires that your FBAR is filed each year. As its name implies, the BSA is aimed at preventing [tax evasion](https://www.fedortax.com/blog/tax-evasion-a-growing-crisis) and [money laundering](https://www.fedortax.com/blog/what-is-money-laundering) through [offshore tax havens](https://www.fedortax.com/blog/the-promise-and-problem-of-offshore-tax-havens) or [foreign accounts](https://www.fedortax.com/blog/do-you-have-foreign-accounts-four-important-things-you-should-know-about-fbar) by U.S. taxpayers. Given that the BSA was enacted in 1970, the IRS does not accept ignorance of the requirement to file an FBAR as a reasonable excuse for not filing.

 

If you decide not to [file your FBAR](https://www.fedortax.com/blog/tips-for-filing-your-fbar), or it slips your mind, it is a good idea to remedy the lapse as quickly as possible. Failing that, you could attract the interest of the IRS and open the door for civil penalties or worse.

 

As a remedy, the IRS encourages taxpayers to follow its process for submitting a [delinquent FBAR](https://www.fedortax.com/blog/fbar-penalties-severe-and-strong-on-appeal). This process is available to those who are not already under a civil or criminal tax investigation by the IRS and have not been contacted by the IRS. Points to keep in mind include:

- You may be able to avoid a penalty if you already reported and paid tax on the holdings, but failed to [file the FBAR](https://www.fedortax.com/blog/what-is-the-difference-between-fbar-and-fatca).
- The IRS requires a statement detailing the reason why the FBAR is delinquent.
- If you willfully avoided filing the required FBAR, speak with your tax attorney regarding the IRS Criminal Investigation [Voluntary Disclosure process (VDP)](https://www.irs.gov/compliance/criminal-investigation/irs-criminal-investigation-voluntary-disclosure-practice).

 

If you failed to file an FBAR, attention is needed. Even penalties for non-willful failure to [fi](https://www.fedortax.com/blog/topic-tune-up-what-is-an-fbar-and-who-needs-to-file-one)[l](https://www.fedortax.com/blog/topic-tune-up-what-is-an-fbar-and-who-needs-to-file-one)[e an FBAR](https://www.fedortax.com/blog/topic-tune-up-what-is-an-fbar-and-who-needs-to-file-one) are steep.  If you are behind on one or more years of your FBAR filings, speak with legal counsel for a route back to compliance.

 

## **Get experienced legal help with offshore report requirements**

Offshore reporting obligations can be complex, and can carry serious financial consequences. If you have failed to file an FBAR or are usure whether you are compliant, [contact](https://www.fedortax.com/contact) Robert J. Fedor, Esq., L.L.C. today at 440-250-9709 or set up a consultation for reliable counsel. We serve clients throughout Northeast Ohio, Chicago, New York and abroad.

 

Want to learn more about offshore tax reporting requirements? Download our free eBook, ["The Guide to Offshore Tax Matters,"](https://www.fedortax.com/download-the-offshore-tax-matters-explained-ebook) to better understand FBAR obligations, penalties and compliance options.

 

[View full post](https://www.fedortax.com/blog/when-you-fail-to-report-a-foreign-bank-account)

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