FBAR Direct prepares and files your FBAR (FinCEN Form 114) on your behalf. You are responsible for reviewing all information for accuracy before submission to FinCEN. This article is for informational purposes only and does not constitute tax, legal, or financial advice.

Who Is a US Person FBAR Rules Apply To? Citizens, Residents, and Entities

Who is a US person FBAR rules apply to? That question determines whether you must report foreign bank and financial accounts to the Financial Crimes Enforcement Network (FinCEN). Under 31 CFR 1010.350(b), the Bank Secrecy Act defines "United States person" to include US citizens, US residents, and domestic entities formed under US law. Any U.S. person with foreign financial accounts that exceed $10,000 in aggregate value at any point during the calendar year must file an FBAR — FinCEN Form 114.

The FBAR filing requirement covers all foreign financial accounts — not just foreign bank accounts. Foreign bank and financial accounts include savings accounts, brokerage accounts, foreign mutual funds, foreign life insurance policies with cash value, and foreign pension accounts. The financial accounts fbar threshold of $10,000 applies to the aggregate maximum value of all foreign accounts combined, measured at the highest point during the calendar year. The obligation to report foreign financial accounts is rooted in 31 USC 5314 of the United States Code.

Misclassifying your United States person status carries serious risk. Non-willful failure to file an FBAR brings penalties up to $16,117 per violation under 31 USC 5321(a)(5)(B). Willful violations cost the greater of $100,000 or 50% of the account balance per year under 31 USC 5321(a)(5)(C). This article covers every category of United States person under the Bank Secrecy Act and explains fbar reporting rules that apply to each.

Who Is a US Person FBAR Requires You to Be Under 31 CFR 1010.350(b)?

A United States person for FBAR purposes includes any U.S. citizen, U.S. resident, or domestic entity under 31 CFR 1010.350(b). The regulation identifies four categories: citizens of the United States, residents of the United States, domestic partnerships, and domestic corporations or other entities formed under US law. Any U.S. person with foreign financial accounts exceeding $10,000 in aggregate value must file an FBAR through the BSA E Filing System.

Category	Test	Key Authority
US citizen	Holds US citizenship (any US passport holder)	31 CFR 1010.350(b)(1)
Green card holder	I-551 status (lawful permanent resident)	31 CFR 1010.350(b)(2)
Resident alien	Substantial presence test under IRC 7701(b)	IRC 7701(b); 31 CFR 1010.350(b)(2)
Domestic entity	Formed or organized in any US state or territory	31 CFR 1010.350(b)(3)-(4)
Non-resident alien	Does not qualify (unless substantial presence met)	31 CFR 1010.350(b)
Foreign entity	Does not qualify	31 CFR 1010.350(b)

US Citizens Must File an FBAR for All Foreign Financial Accounts

Every US citizen must file an FBAR if their foreign financial accounts exceed $10,000 during the calendar year. The fbar filing requirement applies regardless of where you live. A US citizen abroad must report foreign bank and financial accounts just like a citizen living in the United States.

Citizenship, not the nationality of where you hold foreign financial accounts, is the test. A dual citizen of the US and another country is a United States person for fbar purposes. Living abroad has no effect on your obligation to report foreign financial accounts. The Bank Secrecy Act definition ties to citizenship, not to physical presence. The federal government enforces FBAR through the Financial Crimes Enforcement Network, and penalties apply regardless of whether a U.S. person lives domestically or abroad.

Common situations where citizens may not realize they must file an FBAR:

• Born abroad to one or two US citizen parents who hold foreign financial accounts
• Dual nationals who grew up and live in another country
• Citizens who moved abroad decades ago and maintain foreign bank accounts
• Retirees living abroad on a US passport with foreign financial accounts at a local bank

For a step-by-step walkthrough, see our FBAR first-time filer guide.

Green Card Holders Are US Persons With Full FBAR Obligations

Green card holders — lawful permanent residents — are U.S. persons under 31 CFR 1010.350(b). The fbar filing requirement begins the calendar year you receive the I-551 card. Even if you got your green card holder status in December, the entire year's foreign accounts are reportable if the aggregate value exceeds $10,000.

Conditional residents (holders of a two-year green card) are also United States persons. The Bank Secrecy Act does not separate conditional from unconditional permanent residents. A green card holder must file an FBAR for all foreign bank and financial accounts held at any financial institution outside the United States.

You remain a U.S. person until you formally surrender your green card through Form I-407. Letting your green card expire or living abroad does not end the fbar filing requirement. For a detailed look at these rules, see our article on FBAR for green card holders.

Are Resident Aliens Required to File an FBAR for Foreign Financial Accounts?

Yes. A resident alien who meets the substantial presence test under IRC 7701(b) is a U.S. person for FBAR. FinCEN incorporates the IRC 7701(b) definition through 31 CFR 1010.350(b)(2). Resident aliens must file an FBAR to report foreign accounts when the aggregate value exceeds $10,000 during the calendar year. This fbar filing requirement applies even without a green card. Resident alien status depends on days present in the United States, not on visa type.

How the Substantial Presence Test Determines FBAR Status

The substantial presence test makes you a U.S. resident alien — and therefore a United States person — when you satisfy both conditions:

1. You are present in the United States for at least 31 days during the current calendar year
2. Your total weighted presence over three calendar years equals 183 days or more

The weighted calculation for the substantial presence test:

• Current year: Count all days at 100%
• Prior year: Count days at 1/3
• Two years ago: Count days at 1/6

Example: 150 days in 2025 (150) + 90 days in 2024 (30) + 60 days in 2023 (10) = 190 weighted days. This person meets the substantial presence test in 2025 and must file an FBAR for foreign financial accounts exceeding $10,000.

A second example: 120 days in 2025 (120) + 90 days in 2024 (30) + 180 days in 2023 (30) = 180 weighted days. This falls short of 183, so this person does not meet the substantial presence test in 2025.

Closer Connection Exception Does Not Override FBAR Rules

You may avoid US resident alien status for federal income tax purposes by filing Form 8840 (Closer Connection Exception Statement). This IRS income tax election removes the federal income tax return obligation. It does not remove the fbar filing requirement.

The FBAR rests on the Bank Secrecy Act under 31 USC 5314, not on income tax law. The closer connection exception changes your federal income tax purposes status. It does not change your United States person status under 31 CFR 1010.350(b) for fbar reporting. If you meet the substantial presence test, you must file an FBAR for all foreign financial accounts regardless of Form 8840 — as confirmed by IRS guidance on FBAR and 31 CFR 1010.350.

Tax Treaty Tie-Breaker Positions and FBAR Filing

Some income tax treaties let dual residents claim residency in the treaty country. This treaty tie-breaker election reduces US income tax obligations on your federal income tax return. It does not remove the fbar filing requirement.

The FBAR is a Bank Secrecy Act requirement under 31 USC 5314. Tax treaty provisions govern income taxes. They do not override fbar reporting rules. If you meet the substantial presence test, you are a U.S. person and must file an FBAR for foreign financial accounts — even if a treaty tie-breaker positions you as a non-U.S. resident for income tax purposes.

FBAR Direct can help you confirm your United States person status and file an FBAR on your behalf. You review and approve every detail before we submit to FinCEN.

Who Is Considered a US Person for Tax Purposes Versus FBAR Purposes?

For federal income tax purposes, a U.S. person includes citizens and resident aliens under IRC 7701(a)(30). For FBAR, the United States person definition under 31 CFR 1010.350(b) operates independently. A treaty tie-breaker election can affect your federal income tax return status but not your fbar reporting obligation. Form 8840 can affect federal income tax purposes status but not fbar reporting requirements.

Key differences between the two definitions:

• Income tax: Treaties and elections can override US resident status for federal income tax purposes
• FBAR: Bank Secrecy Act fbar rules apply regardless of income tax elections or treaties
• Filing: FBAR goes to FinCEN via the BSA E Filing System; income tax returns go to the IRS
• Form: FBAR filers use FinCEN Form 114; income tax uses IRS forms
• Threshold: Fbar reporting covers foreign financial accounts with aggregate value over $10,000

This distinction matters for anyone with a treaty tie-breaker position, a closer connection exception election, or dual citizenship. Your income tax return status and your U.S. person fbar status may differ. See our FBAR vs. FATCA comparison for how Bank Secrecy Act fbar reporting differs from income tax obligations.

Are US Domestic Entities Required to File an FBAR?

Yes. Under 31 CFR 1010.350(b), domestic corporations, partnerships, limited liability companies, and trusts formed under US law are United States persons. A domestic entity must file an FBAR if it holds a financial interest in or signature authority over foreign financial accounts with aggregate value exceeding $10,000 during the calendar year. Formation under US law is the only test — business activity can be entirely overseas.

Corporations and Limited Liability Companies

A corporation formed in Delaware, a limited liability company organized in Wyoming, or an S corporation formed in California — all are domestic entities and U.S. persons for fbar filing purposes. This applies even if the corporation or limited liability company conducts all its business in a foreign country.

A foreign subsidiary of a U.S. corporation is not a United States person because it is a separate foreign entity formed under foreign law. However, the U.S. parent may have fbar filing obligations if it holds signature authority over the foreign subsidiary's foreign accounts. Limited liability companies with foreign bank and financial accounts must file an FBAR if the domestic entity is the account holder of record.

Partnerships and Trusts With Foreign Financial Accounts

A general partnership or limited partnership organized in any US state is a United States person. The domestic entity itself must file an FBAR for any foreign accounts it holds. Individual partners may have separate fbar filing requirements if they personally hold foreign financial accounts or hold signature authority over foreign bank and financial accounts.

A trust formed under US law is also a United States person under 31 CFR 1010.350(b). The trust must file an FBAR for the trust's foreign financial accounts if the aggregate value exceeds $10,000. For details on entity fbar reporting, see our article on FBAR for business accounts and signatory authority.

What Types of Foreign Financial Accounts Trigger the FBAR Filing Requirement?

A U.S. person must file an FBAR when the aggregate maximum value of all foreign financial accounts exceeds $10,000 at any point during the calendar year. The Bank Secrecy Act and 31 CFR 1010.350(c) define "foreign financial account" broadly. Certain foreign financial accounts covered by fbar reporting include foreign bank accounts, securities accounts, foreign mutual funds, and foreign pension accounts. The location of the financial institution determines whether the account is a foreign financial account — not the account type.

Any financial account located outside the United States qualifies as a foreign financial account. This includes accounts you own outright and accounts over which you hold signature authority. The FinCEN FBAR instructions list all covered account types under the report foreign bank and financial accounts rules.

Foreign Bank Accounts: Checking, Savings, and Time Deposits

Foreign bank accounts are the most common type of certain foreign financial accounts subject to fbar reporting. Foreign bank accounts include checking accounts, savings accounts, and time-deposit accounts held at a foreign bank or other foreign financial institution located in a foreign country.

A U.S. person must report foreign bank accounts at any financial institution outside the United States when the aggregate value — combined with all other foreign accounts — exceeds $10,000. The maximum value of each foreign bank account is measured at the highest point during the calendar year, not the year-end balance.

A U.S. person with a single foreign bank account that reached $12,000 at any point must file an FBAR. A U.S. person with three separate foreign bank accounts each reaching $4,000 must also file an FBAR — because the $10,000 threshold applies to the aggregate of all foreign bank and financial accounts.

Jointly owned accounts at a foreign bank also count. Each U.S. person with a financial interest in jointly owned accounts must include those foreign accounts in their fbar filing.

Brokerage Accounts, Securities, and Foreign Mutual Funds

Foreign brokerage accounts and securities accounts are foreign financial accounts for fbar purposes. If a U.S. person holds foreign stocks, bonds, or foreign mutual funds through a financial institution located outside the United States, that brokerage account counts toward the $10,000 aggregate value threshold.

Foreign mutual funds are foreign financial accounts under 31 CFR 1010.350(c)(3). A U.S. person with a financial interest in a fund registered with a foreign financial regulatory authority must report it as part of the fbar reporting obligation. The location of the financial institution — not the type of asset — determines whether the account is a foreign financial account.

Cash Value Life Insurance and Foreign Pension Accounts

Foreign life insurance policies with a cash value are reportable foreign financial accounts. If a foreign financial institution issues a policy with a cash value, that policy qualifies as a foreign financial account under fbar reporting rules. The cash value — not the death benefit — counts toward the $10,000 threshold.

Foreign pension accounts and individual retirement account equivalents at a foreign financial institution are generally reportable foreign financial accounts. A U.S. person with a financial interest in a foreign pension or retirement plan must include it in the aggregate calculation. Some exceptions exist for government pension plans in treaty countries, but these are narrow. Our article on FBAR for foreign pension and retirement accounts covers those rules in detail.

Understanding Financial Interest and Signature Authority

Two separate triggers can require a U.S. person to file an FBAR: financial interest and signature authority. A United States person who meets either test must report the foreign financial account. Both triggers apply to the fbar filing requirement for financial accounts fbar rules under the Bank Secrecy Act.

What Counts as Financial Interest Under FBAR Rules?

A U.S. person has a financial interest in a foreign financial account under 31 CFR 1010.350(e) when they hold legal title to the account, are the owner of record, or own more than 50% of a domestic entity that holds the foreign financial account. Financial interest also extends to situations where a nominee holds the foreign bank account on your behalf. An ownership interest of more than 50% in a domestic or foreign entity that itself holds foreign accounts creates a reportable financial interest for the U.S. person. A foreign financial account held by a nominee on a U.S. person's behalf requires FBAR reporting, just as if the U.S. person held legal title directly.

The financial interest test captures indirect ownership. If you own 60% of a foreign corporation that holds foreign bank and financial accounts, you have a financial interest in those foreign accounts. This prevents avoidance of fbar reporting by routing assets through intermediary entities.

A grantor trust is another common source of financial interest. If you transferred assets to a foreign trust and retain the power to revoke it, you have a financial interest in the trust's foreign financial accounts. You must file an FBAR to report those financial accounts even if you do not technically own them. An equity interest — such as a beneficial ownership stake — in a foreign entity that holds an offshore account can also create a reportable financial interest for a U.S. person.

How to Report Signature Authority Over Foreign Financial Accounts

Signature authority means the authority — alone or together with another — to control the disposition of assets in a foreign financial account by direct communication to the foreign financial institution. A U.S. person with signature authority over foreign financial accounts must file an FBAR to report signature authority even without a financial interest in the account.

The most common example: an employee authorized to sign on a company's foreign bank accounts. Under 31 CFR 1010.350(f), an officer or employee who can direct how funds move in a foreign financial account has signature authority. That person must file an FBAR to report signature authority over those financial accounts — unless an exception applies.

The primary exception covers officers and employees of publicly traded companies filing a consolidated FBAR. See IRS Notice 2011-1 for the consolidated fbar rules and the limited relief available.

Signature Authority Over an Employer's Foreign Financial Account

A U.S. person who has signature authority over an employer's foreign financial account faces fbar filing obligations for those financial accounts, distinct from their personal fbar filing. The individual must file an FBAR listing the employer's foreign accounts — even if the employer also files its own FBAR.

A finance director authorized to wire funds from a company's foreign bank accounts in Germany holds signature authority over those foreign financial accounts. That director must file an individual FBAR to report foreign bank and financial accounts for the employer along with any personal foreign financial accounts. The form accommodates multiple foreign financial accounts — both personal and employer-related. See our article on FBAR for business accounts and signatory authority.

Jointly Owned Foreign Financial Accounts and the Filing Spouse Reports Rule

Jointly owned accounts at a foreign financial institution require each co-owner who qualifies as a United States person to file a separate FBAR. Both account holders must report the full maximum value of the jointly owned foreign financial accounts — not just their share.

The $10,000 threshold applies to each U.S. person individually based on the aggregate maximum value of all their foreign bank and financial accounts combined. For example, two U.S. persons with jointly owned accounts at a foreign bank each report foreign financial accounts at their full balance on their individual FBAR.

An exception exists for spouses. The filing spouse reports rule allows a non-filing spouse to be included on the other spouse's FBAR when both spouses sign and specific conditions are met. When in doubt, each spouse should file a separate FBAR reporting all jointly owned foreign financial accounts at their full value.

How Foreign Financial Institutions Fit Into FBAR Reporting

Foreign financial institutions that hold foreign financial accounts for U.S. persons are not directly responsible for fbar filing — the United States person is. A financial institution is "foreign" for fbar purposes when it is physically located outside the United States. Foreign financial institutions include foreign banks, securities dealers, insurance companies, and other entities that hold financial assets for customers in a foreign country. The Financial Crimes Enforcement Network administers the FBAR program and publishes the fbar reporting requirements that apply to each U.S. person category. International financial institution accounts — such as accounts at the World Bank or International Monetary Fund — are exempt under 31 CFR 1010.350(g), but this exemption is narrow and applies only to official government-related entities.

Many foreign financial institutions now report account data to the IRS under FATCA. That foreign financial institution reporting does not replace the United States person's fbar filing requirement. The BSA E Filing System and IRS FATCA reporting operate independently. Fbar reporting covers foreign accounts regardless of whether the foreign financial institution reports separately under FATCA.

US Branches of Foreign Financial Institutions

A US branch of a foreign bank is a US financial institution for fbar purposes. An account at the New York branch of a Swiss bank is not a foreign financial account. The physical location — within the United States — removes it from fbar coverage.

A foreign branch of a US bank is a financial institution located outside the United States for fbar purposes. An account at the London branch of a US bank is a foreign financial account. U.S. persons with foreign bank accounts at foreign branches of US banks must include those foreign accounts in their fbar filing when the aggregate value exceeds $10,000.

How Do You File an FBAR Through the BSA E-Filing System?

You must file an FBAR — FinCEN Form 114 — electronically through the BSA E Filing System at bsaefiling.fincen.treas.gov. There is no paper option to report foreign bank and financial accounts. The Financial Crimes Enforcement Network requires all fbar filers to use the BSA E Filing account directly or authorize a registered preparer to file an FBAR on their behalf.

The deadline to file an FBAR is April 15, with an automatic extension to October 15 under 31 CFR 1010.306. The BSA E Filing System accepts filings year-round — not only during tax season. To file an FBAR through the BSA E Filing System:

1. Create a free BSA E Filing account at the BSA E Filing System portal
2. Select FinCEN Form 114 from the BSA E Filing System menu
3. Enter filer information — name, address, tax identification number
4. List each foreign financial account — institution name, account number, maximum value, country
5. Convert foreign currency balances using Treasury exchange rates as of December 31
6. Sign and submit through the BSA E Filing System and save the confirmation number

FBAR Direct is a registered BSA E Filing institution (TCC: PBSA8180). When you use FBAR Direct, we file an FBAR directly with FinCEN on your behalf. You review and approve all foreign financial account details before we submit. Opening a BSA E Filing account is free — you can create a BSA E Filing account at the portal and begin the filing process at no cost. See how the process works.

The Report of Foreign Bank and Financial Accounts Filing Requirements

The report of foreign bank and financial accounts — FinCEN Form 114 — covers one calendar year per filing. A separate report of foreign bank and financial accounts is required for each calendar year in which the $10,000 threshold was exceeded. Each fbar filing must disclose the maximum value of each financial accounts fbar entry during the reporting period. The non-willful penalty ceiling is adjusted annually for inflation under the Federal Civil Penalties Inflation Adjustment Act. Any U.S. person who must report foreign financial accounts should also understand federal tax treatment obligations — both the FBAR and any related income reporting on a federal income tax return are separate requirements.

Values for the report of foreign bank and financial accounts must be converted to US dollars using the Treasury Department's official exchange rates as of December 31 of the tax year. For details on the conversion process, see our guide on FBAR exchange rates and Treasury rates. Periodic account statements from your foreign financial institution can help you verify the maximum value during the year. When you report foreign bank accounts, each account entry must include the name of the foreign financial institution, the account number, and the maximum value converted to US dollars.

Delinquent FBAR Filers and the Streamlined Procedures

A U.S. person who failed to file an FBAR for prior years has two main options: the Delinquent FBAR Submission Procedures and the IRS Streamlined Filing Compliance Procedures. The correct path depends on whether the failure was willful.

The Delinquent FBAR Submission Procedures under IRS guidance let non-willful filers report foreign bank and financial accounts without penalty — provided the IRS has not already contacted the filer. The filer must include an explanation of why the fbar filing was late. The fbar disclosing program requires filers to submit through the BSA E Filing System with a narrative statement explaining the delinquency.

The Streamlined Filing Compliance Procedures are a broader program for United States persons who were non-willfully noncompliant. Both the Streamlined Domestic and Streamlined Foreign Offshore procedures require an amended federal income tax return, a foreign retirement plan or individual retirement account disclosure if applicable, and payment of any unpaid tax. For a full breakdown, see our guide on FBAR streamlined filing compliance procedures.

What About DACA Recipients and US Territory Residents?

DACA recipients who meet the substantial presence test are United States persons for fbar purposes. The Bank Secrecy Act definition under 31 CFR 1010.350(b) does not require lawful immigration status. It requires residence under IRC 7701(b), which turns on days present in the United States. A DACA recipient who has lived in the United States for years will almost certainly meet the substantial presence test and must file an FBAR to report foreign accounts exceeding $10,000.

Residents of US territories — Puerto Rico, Guam, the US Virgin Islands, American Samoa, and the Northern Mariana Islands — are US citizens under 8 USC 1401 and therefore United States persons for fbar. Territory residents have special rules for their federal income tax return, but those rules do not change their fbar obligations. The FBAR is a Bank Secrecy Act requirement. Territory residents with foreign financial accounts over $10,000 must file an FBAR.

What Penalties Apply If a US Person Does Not File an FBAR?

Penalties for failure to file an FBAR are set by 31 USC 5321 and apply per foreign financial account, per calendar year. A U.S. person who fails to file an FBAR or files late faces three levels of enforcement based on whether the failure was willful.

• Non-willful violation: Up to $16,117 per foreign financial account per year under 31 USC 5321(a)(5)(B) (2025 inflation-adjusted amount)
• Willful violation: The greater of $100,000 or 50% of the account balance per year under 31 USC 5321(a)(5)(C)
• Criminal penalties: Up to $250,000 in fines and 5 years imprisonment under 31 USC 5322

Three unreported foreign financial accounts for two years equals six violations. At the non-willful rate, that is up to $96,702 in penalties (6 × $16,117 under 31 USC 5321). For a full breakdown, see our FBAR penalties guide and our article on willful vs. non-willful FBAR penalties.

Let FBAR Direct prepare your fbar filing — we are a FinCEN-registered BSA E-Filing institution (TCC: PBSA8180) and file an FBAR directly with FinCEN on your behalf.

Frequently Asked Questions About Who Is a US Person for FBAR

Who is a US person for FBAR filing purposes?

A United States person under 31 CFR 1010.350(b) includes US citizens, lawful permanent residents (green card holders), and resident aliens who meet the substantial presence test under IRC 7701(b). It also includes domestic entities — corporations, partnerships, limited liability companies, and trusts formed under US law. Any U.S. person with foreign financial accounts exceeding $10,000 in aggregate value must file an FBAR — FinCEN Form 114 — through the BSA E Filing System.

Does a US citizen abroad need to file an FBAR for foreign financial accounts?

Yes. US citizenship, not physical location, determines fbar status. Under 31 CFR 1010.350(b), every US citizen is a U.S. person regardless of where they live. Dual citizens, long-term expats, and citizens who have never lived in the United States must file an FBAR if their foreign accounts exceed $10,000 at any point — per IRS FBAR guidance and 31 USC 5314. Your own citizenship status creates the fbar filing requirement — not the nationality of the financial institution.

What is the substantial presence test for FBAR purposes?

The substantial presence test under IRC 7701(b) requires at least 31 days of US presence in the current calendar year, plus a weighted day total of 183 or more over three years. Current year days count at 100%, prior year at 1/3, and two years ago at 1/6. If you meet both conditions, you are a U.S. resident alien — a United States person — who must file an FBAR for all foreign accounts exceeding $10,000.

Does a tax treaty tie-breaker election remove my FBAR obligation?

No. A treaty tie-breaker election reduces US income tax obligations on your federal income tax return but does not remove the fbar filing requirement. The FBAR is a Bank Secrecy Act requirement under 31 USC 5314, separate from income tax law. If you meet the substantial presence test, your obligation to file an FBAR exists regardless of any treaty election. See our FBAR vs. FATCA comparison for how Bank Secrecy Act fbar rules differ from income tax.

Are corporations and limited liability companies required to file an FBAR?

Yes. Under 31 CFR 1010.350(b), any domestic corporation, partnership, or limited liability company formed under the laws of any US state is a U.S. person. If the domestic entity holds a financial interest in or has signature authority over foreign accounts exceeding $10,000 in aggregate value, it must file an FBAR through the BSA E Filing System.

What types of foreign financial accounts must be reported on the FBAR?

Foreign financial accounts subject to fbar reporting include foreign bank accounts (checking and savings), foreign brokerage and securities accounts, foreign mutual funds, foreign life insurance policies with cash value, foreign pension and individual retirement account equivalents, and any other financial accounts held at a financial institution outside the United States. The location of the financial institution — not the nationality of the assets held — determines whether the account is a foreign financial account. All U.S. persons must report foreign bank and financial accounts to the Financial Crimes Enforcement Network by filing FinCEN Form 114 annually when the threshold is met.

Let FBAR Direct Handle Your FBAR Filing

Once you confirm your United States person status, you still need to gather details for all foreign financial accounts, convert foreign currency balances to US dollars using Treasury exchange rates, and file an FBAR through the BSA E Filing System by April 15. An automatic extension to October 15 applies per 31 CFR 1010.306. Getting your U.S. person status wrong or missing foreign accounts can trigger penalties starting at $16,117 per account per year under 31 USC 5321(a)(5)(B).

Let FBAR Direct prepare your filing — you review and approve every foreign financial account detail before we submit to FinCEN. Upload your account statements and we handle the conversion, fbar reporting, and BSA E Filing submission. See how it works.

Tax regulations change frequently. Always verify current requirements at IRS.gov or FinCEN.gov. For advice specific to your situation, consult a qualified tax professional. This article is current as of March 03, 2026.