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FBAR Attorney

FBAR Violations & Penalties — Get Ahead of the IRS Before They Find You.

If you have a foreign bank account, investment account, or financial interest in a foreign entity and the combined balance exceeded $10,000 at any point in the year, you were required to file an FBAR (FinCEN Form 114). Failure to file can result in civil penalties of $10,000–$100,000+ per violation and — in cases of willful non-compliance — criminal prosecution. The IRS and DOJ have aggressively pursued FBAR violators since 2008 through the Swiss bank agreements, John Doe summonses, and international data sharing. If you have unfiled FBARs, act now — voluntary disclosure before IRS contact dramatically reduces penalties.

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What Is an FBAR?

FBAR stands for the Report of Foreign Bank and Financial Accounts (FinCEN Form 114). It is filed separately from your federal tax return with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury. The filing requirement applies to U.S. persons (citizens, residents, and certain entities) who have a financial interest in or signature authority over one or more foreign financial accounts if the aggregate value exceeded $10,000 at any time during the calendar year. The FBAR is due April 15 with an automatic extension to October 15. Non-willful failure to file carries a penalty of up to $10,000 per violation. Willful failure carries penalties of the greater of $100,000 or 50% of the account balance per violation — and potentially criminal prosecution under the Bank Secrecy Act.

How It Works

01

Confidential Case Assessment

We review your foreign account history, determine your filing obligations, assess your exposure, and advise on whether voluntary disclosure or quiet disclosure is appropriate.

02

Determine Willfulness

The distinction between willful and non-willful FBAR violations is the most critical factor in your penalty exposure. We analyze your specific facts to build the strongest argument for non-willfulness.

03

Streamlined Filing or OVDP

For eligible taxpayers, the Streamlined Filing Compliance Procedures allow late FBAR filers to come into compliance with significantly reduced penalties. We determine which program fits your situation.

04

FBAR Penalty Negotiation

If you are already under IRS examination for FBAR violations, we negotiate directly with IRS examiners and IRS Appeals to minimize penalties — particularly the application of willfulness and per-account penalty stacking.

05

Compliance & Prevention

We ensure you are fully compliant going forward — correctly reporting all foreign accounts, income, and assets on FBARs, Form 8938, and Schedule B of your federal return.

Who Should Consider This?

  • ✓U.S. citizens or residents with foreign bank or investment accounts over $10,000
  • ✓Individuals who missed FBAR filing deadlines in prior years
  • ✓Taxpayers who received IRS notice of FBAR examination
  • ✓Foreign nationals living in the U.S. with accounts in their home country
  • ✓U.S. expats with financial accounts abroad
  • ✓Business owners with foreign subsidiaries or accounts

Key Benefits

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Dramatically Reduce Penalties

The difference between willful and non-willful FBAR penalties is $90,000+ per violation. The right attorney makes this argument effectively.

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Streamlined Disclosure

Eligible taxpayers can come into compliance through streamlined procedures with only a 5% offshore penalty — versus 50% per account for willful violations.

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Criminal Protection

Voluntary disclosure before IRS contact provides the strongest protection against criminal FBAR prosecution under the Bank Secrecy Act.

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Full Compliance Strategy

We handle FBAR, Form 8938 (FATCA), foreign tax credits, and all related international reporting to bring you fully into compliance.

Ready to Resolve Your FBAR Attorney Issue?

Free consultation. No obligation. A licensed tax attorney will call you within 5 minutes.

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Frequently Asked Questions

What happens if I missed FBAR filings for multiple years?+

You can file late FBARs and use the IRS Streamlined Filing Compliance Procedures (domestic or offshore) to significantly reduce your penalty exposure. For non-willful violations, the streamlined offshore procedure carries only a 5% miscellaneous offshore penalty. The key is filing before the IRS contacts you — once an examination begins, your options narrow significantly.

What is the penalty for willful FBAR violation?+

A willful FBAR violation carries a civil penalty of the greater of $100,000 or 50% of the highest balance in the account for each year of violation. Multiple accounts and multiple years multiply quickly. The Supreme Court ruled in Bittner v. United States (2023) that the per-violation penalty applies per form (not per account) for non-willful violations — but willful violations are still assessed per account, per year.

How does the IRS find out about foreign accounts?+

Through FATCA (Foreign Account Tax Compliance Act), foreign banks report U.S. account holders directly to the IRS. The DOJ has also obtained John Doe summonses from Swiss banks, Israeli banks, and others, producing thousands of account holder names. If you have foreign accounts, assume the IRS either has or can get this information.

Can I just quietly file late FBARs without using a formal program?+

Quiet disclosure (filing amended returns and late FBARs without using a formal program) is strongly discouraged by the IRS and carries significant risk. If the IRS discovers the late filings before you use a formal disclosure program, they may assert willfulness and assess maximum penalties. Use the Streamlined Program through an attorney.

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