What Is An FBAR? Taxes From A to Z®

FBAR stands for Report of Foreign Bank and Financial Accounts. Despite the name, it’s not limited to bank accounts. A U.S. person generally must file an FBAR if they have a financial interest in or signature or other authority over foreign financial accounts and the aggregate value of those accounts exceeds $10,000 at any time during the calendar year. 

Who Is A U.S. Person?

For FBAR purposes, a U.S. person includes a U.S. citizen or resident, as well as certain entities created, organized, or formed under U.S. law, such as corporations, partnerships, limited liability companies, trusts, and estates. Importantly, U.S. citizens may have an FBAR filing obligation even if they live outside the United States.

What Is The FBAR Threshold?

That $10,000 threshold is aggregate, not per account. So, for example, having $6,000 in one foreign account and $5,000 in another at the same time can trigger the filing requirement even though neither account individually tops $10,000.

And yes, it’s legal to have foreign accounts. And yes, there are plenty of legitimate reasons (just ask my daughter). But filing requirements still apply.

Where Do You File Your FBAR?

You don’t file your FBAR with your federal income tax return. You file it electronically with the Financial Crimes Enforcement Network (FinCEN), a division of the Treasury. FBARs are generally due April 15, with an automatic extension to October 15—you don’t need to request it.