FBAR & FATCA: Avoiding International Penalties

The U.S. has strict reporting requirements for foreign financial assets. Ignorance of these laws is not a defense against the steep penalties.

FBAR (FinCEN Form 114)

You must file an FBAR if the aggregate value of all your foreign financial accounts exceeds $10,000 at any time during the calendar year.

FATCA (Form 8938)

This is filed with your income tax return and typically applies to higher asset thresholds (starting at $50,000 for single filers living in the U.S., higher for others).

Streamlined Procedures

If you have failed to file in the past, the IRS offers "Streamlined Filing Compliance Procedures" for non-willful violations. This program can significantly reduce potential penalties if you come forward voluntarily before the IRS contacts you.