The short answer
Don't ignore it, and don't assume one fix fits everyone. The IRS describes different options for people who missed FBARs, and which one may apply depends mainly on two facts:
- Has the IRS already contacted you — or are you under a civil examination or criminal investigation?
- Was all income from the foreign accounts reported on your U.S. tax returns, with the tax paid?
FBAR penalties can be serious, and they depend on the facts — including whether a failure was willful. Nobody can promise "no penalty" in advance. For anything beyond the simplest case, get individual professional advice.
Match your situation to the IRS options
| Your situation | Option the IRS describes | Notes |
|---|---|---|
| Not under examination or investigation, not contacted by the IRS about the FBARs, and all account income was reported and taxed | Delinquent FBAR submission procedures | File the late FBARs with a statement explaining why they are late |
| Account income was not fully reported, and the conduct was non-willful | Streamlined filing compliance procedures | Requires a certification of non-willful conduct signed under penalties of perjury; see the IRS page for the returns and FBARs involved |
| Conduct was willful, with potential criminal exposure | IRS Criminal Investigation Voluntary Disclosure Practice | Get a tax attorney before taking any step |
| Already under examination, or the IRS has contacted you | The procedures above may not be available | Respond to the IRS with professional help |
The delinquent FBAR submission procedures
The IRS says taxpayers who have not filed a required FBAR, are not under a civil examination or criminal investigation, and have not already been contacted by the IRS about the delinquent FBARs should file the delinquent FBARs according to the FBAR instructions, including a statement explaining why they are filing late. FBARs are filed electronically through FinCEN's BSA E-Filing System, where you can select a reason for filing late.
The IRS states that it will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for those years. Read the IRS conditions carefully — they are specific.
If there is unreported income
If interest, dividends, or other income from your foreign accounts was not reported, filing late FBARs alone does not address the tax side. The IRS describes the streamlined filing compliance procedures for taxpayers whose failures were non-willful, and the Criminal Investigation Voluntary Disclosure Practice for taxpayers with willful conduct and potential criminal exposure. Choosing between them requires judgment about your facts — get professional help.
Don't simply start filing FBARs going forward and hope earlier years go unnoticed, and don't overstate or invent facts in a late-filing statement. If the IRS has already contacted you, don't choose a procedure on your own — respond with professional help.
Example
Jun, a U.S. resident since 2021, kept a Taiwan account above $10,000 every year and reported its interest on each tax return, but never filed an FBAR. The IRS has not contacted him. His facts line up with the delinquent FBAR submission procedures, so — after confirming the conditions — he files the missed FBARs through BSA E-Filing with a statement explaining why they are late. If he had also left the interest off his returns, he would need to look at other options with a professional.
Before you file anything
- Confirm which years actually required an FBAR — see How the $10,000 rule really works.
- Gather statements to find each account's maximum value — see maximum account value.
- Check whether the account income was reported on each year's return.
- Check whether Form 8938 was also required for those years.