How it works
The FBAR is filed electronically with FinCEN, not the IRS, by any U.S. person whose foreign financial accounts had a combined value over 10,000 dollars at any point in the calendar year. It covers bank and brokerage accounts, certain foreign pensions and insurance, and accounts you only have signature authority over. It is due April 15 with an automatic extension to October 15. Under current FinCEN guidance, an account holding only virtual currency is not reportable, but an account holding crypto alongside fiat is.
Why it matters
Penalties are severe and separate from any tax: non-willful penalties exceed 16,000 dollars per year, willful penalties reach the greater of an inflation-adjusted amount or 50 percent of the balance, and the IRS receives foreign account data through FATCA agreements.
Example
An expat has a checking account with 6,000 euros and a savings account with 8,000 euros at the same bank. The aggregate exceeds 10,000 dollars, so both accounts must be reported even though neither alone crosses the line.
Related: FBAR penalties, FATCA and Form 8938, willful versus non-willful. Read more: FBAR filing and late FBARs.
