FBAR and Foreign Account Reporting Lawyer

FBAR Basics

The Report of Foreign Bank and Financial Accounts, commonly known as the FBAR, is an annual report filed with the Financial Crimes Enforcement Network. It is separate from a federal income tax return and has its own filing requirements, deadlines, and penalty structure. The FBAR exists to give the U.S. government visibility into foreign financial holdings maintained by U.S. persons, and it applies regardless of whether the foreign account generates taxable income.

Who Must File

U.S. citizens, resident aliens, and certain domestic entities are generally required to file an FBAR if the aggregate value of their foreign financial accounts exceeded $10,000 at any time during the calendar year. This threshold is measured across all foreign accounts combined, not on a per-account basis, so several smaller accounts can still trigger a filing requirement.

Foreign Accounts

Reportable foreign accounts can include foreign bank accounts, brokerage and securities accounts, and certain foreign pooled investment vehicles. Individuals with signature authority over an account — even one they do not personally own, such as a business account they can access on behalf of an employer — may also have a filing obligation. Determining exactly which accounts and relationships trigger a reporting requirement often requires a careful, fact-specific review.

Civil Penalties

Failing to file an FBAR, or filing one that is materially incomplete or inaccurate, can result in civil penalties. The applicable penalty framework depends heavily on whether the violation is characterized as willful or non-willful, and penalty amounts can escalate substantially for violations spanning multiple years.

Willful vs. Non-Willful Issues

Willfulness is one of the most heavily contested issues in FBAR enforcement. A non-willful violation generally reflects an unintentional failure to comply, while a willful violation involves a recognized duty to file that was knowingly disregarded, or reckless disregard of a known obligation. Because the penalty exposure differs so significantly between the two categories, how a case is framed and documented can have a substantial impact on the outcome.

Reasonable Cause

In certain circumstances, a taxpayer may be able to establish reasonable cause for a filing failure, which can support penalty mitigation. Reasonable cause arguments often rely on documented reliance on professional advice, unfamiliarity with foreign account reporting requirements despite reasonable efforts to comply, or specific circumstances that prevented timely filing.

Disclosure Options

Taxpayers who discover they have unfiled or inaccurate FBARs from prior years have several potential paths to address the issue, ranging from delinquent filing procedures to more formal disclosure programs, depending on the underlying facts and the taxpayer's risk profile. Selecting the appropriate path requires weighing the taxpayer's specific history, the accounts involved, and the degree of exposure under different characterizations of the prior non-compliance.

International Entrepreneurs and Families

FBAR issues frequently arise for entrepreneurs, investors, and families with financial ties across multiple countries — including foreign-born U.S. residents who retained accounts in their home country, and U.S. citizens living or working abroad. These situations often intersect with broader international tax planning and immigration considerations, and Anthony Girand Law's federal practice allows for coordinated advice across these related areas.

Connection to Tax Controversy

FBAR matters frequently arise alongside broader federal tax controversy issues, including underlying income tax compliance related to foreign accounts. Anthony Girand Law's tax controversy practice allows FBAR matters to be addressed as part of a coordinated strategy rather than in isolation, particularly where an FBAR issue surfaces during an IRS audit or other examination.

Working With Anthony Girand, Esq.

Anthony Girand, Esq. is a JD/MBA and Maryland attorney whose practice includes immigration, tax controversy, federal litigation, startup law, and regulatory compliance. He brings a business-minded legal perspective to matters involving federal agencies, founders, professionals, companies, and individuals facing consequential legal decisions.

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