The short answer
You need to file an FBAR (FinCEN Form 114) if you are a U.S. person, you have a financial interest in or signature or other authority over one or more foreign financial accounts, and the aggregate value of those accounts exceeded $10,000 at any time during the calendar year.
Three words in that sentence trip people up: aggregate (all accounts added together), at any time (not the December 31 balance), and accounts (financial accounts — not every kind of foreign asset).
| Common belief | What the rule actually says |
|---|---|
| "Each account has to be over $10,000" | No — the test adds up the maximum values of all your foreign financial accounts |
| "I only check my December 31 balance" | No — the question is whether the total exceeded $10,000 at any time during the year |
| "I only report the account that was large" | No — once you must file, you report your foreign financial accounts on the FBAR |
| "Reporting means I owe tax on the money" | No — the FBAR is a report; the balance itself is not income |
Who is a U.S. person for the FBAR
U.S. citizens, U.S. residents, and U.S. entities are U.S. persons for FBAR purposes. For individuals who are not citizens, residency is determined under the tax law's residency tests (the green card test and the substantial presence test). See Am I a U.S. tax resident? If you just arrived this year, read I just moved to the U.S. — do I need to report my foreign bank accounts?
Financial interest and signature authority, briefly
- Financial interest: generally, you are the owner of record or hold legal title to the account — including an account you own jointly with someone else.
- Signature or other authority: you can control the disposition of money in the account by direct communication with the bank, alone or together with someone else — for example, being able to instruct a parent's bank to move money.
Either one can bring an account into your FBAR count. Signature authority held as an employee has its own exceptions; that is outside this guide.
How the $10,000 aggregate test works
FinCEN's guidance states the rule this way: if the maximum account value of a single account, or the aggregate of the maximum account values of multiple accounts, exceeds $10,000, an FBAR must be filed.
Example: two Taiwan accounts
Mei, a U.S. resident, has two accounts in Taiwan during 2025 (amounts converted to U.S. dollars):
| Account | Maximum value during 2025 |
|---|---|
| Checking account, Bank A | $6,000 |
| Savings account, Bank B | $5,500 |
| Aggregate of maximum values | $11,500 |
Neither account ever reached $10,000, but the aggregate of their maximum values is $11,500 — more than $10,000. Mei files an FBAR for 2025 and reports both accounts, each with its own maximum value.
If the two maximums had been $4,000 and $5,500 ($9,500 in total), no FBAR would be required for those accounts.
Each account's maximum value is a reasonable approximation of the greatest value in the account during the year. Foreign currency is converted to U.S. dollars using the Treasury's exchange rate for the last day of the calendar year. The details are in What is the maximum value of a foreign account for FBAR?
"Foreign account" does not mean every foreign asset
The FBAR covers foreign financial accounts — for example bank accounts (savings, checking, time deposits), securities and brokerage accounts, and certain other financial accounts such as insurance or annuity policies with a cash value. It does not cover everything you own abroad. For example, the IRS comparison of the two forms lists foreign real estate held directly as not reported on the FBAR, and foreign stock held directly outside a financial account is not an FBAR item. See Foreign property and Foreign brokerage accounts and stocks.
Filing basics
- The FBAR is filed electronically with FinCEN through the BSA E-Filing System — not attached to your Form 1040.
- It is due April 15 of the following year, with an automatic extension to October 15.
- Form 8938 is a separate requirement with different thresholds. Filing one does not satisfy the other. See FBAR vs. Form 8938.
Reporting is not the same as tax
The money in your foreign account is not income just because it is reported. Income tax applies to what the account earns — interest, dividends, gains — which a U.S. citizen or resident reports on the tax return. See Do I need to report a Taiwan or foreign bank account?
List every foreign account, its highest balance in the local currency, the year-end Treasury exchange rate, and the converted maximum. Add the column. That one page answers the FBAR question and gives you the numbers to file.