FBAR Filing: Who Must File, and What It Costs to Get Wrong

If you are a U.S. person with a bank account or investment in India, the FBAR is one of the easiest filings to miss and one of the most expensive. Here is who has to file, when, and how to fix it if you are behind.

Updated June 2026 · 8 min read

The FBAR is not part of your tax return. It is a separate report, filed with the U.S. Treasury, that discloses the foreign financial accounts you control. Plenty of people who file a perfect 1040 still miss it, because the account in India never produced a U.S. tax form to remind them.

What the FBAR actually is

FBAR stands for Report of Foreign Bank and Financial Accounts. It is filed on FinCEN Form 114, electronically, through the Treasury's BSA E-Filing system. It is separate from the IRS and separate from your income tax return. Its only job is to tell the government what foreign accounts you have, not to calculate tax.

Who has to file

You must file an FBAR for a calendar year if both of these are true:

  • You are a U.S. person. That includes U.S. citizens, green-card holders, residents for tax purposes, and U.S. entities such as corporations, partnerships, LLCs, and certain trusts.
  • You had a financial interest in, or signature authority over, one or more foreign financial accounts whose combined value was more than $10,000 at any point during the year.

The $10,000 test is an aggregate, and it is a high-water mark. If you held two Indian accounts that each peaked at $6,000 on different days, the combined high balances cross the line and both accounts get reported. You do not need to hold $10,000 at year end. One day over the threshold is enough.

Common India trigger

NRE and NRO savings accounts, fixed deposits, PPF accounts, demat and brokerage accounts, and many Indian mutual fund and insurance products are all foreign financial accounts. Money you moved to India for a property purchase, or an inherited account, counts too.

The deadline

The FBAR is due April 15, the same day as your tax return. There is an automatic extension to October 15, and you do not have to request it. If you miss April 15, you have until October 15 with no penalty and no form to file for the extension.

The penalties, and why people take this seriously

This is where the FBAR earns its reputation. Penalties depend on whether the failure to file was non-willful or willful:

Non-willful

An honest mistake, such as not knowing the rule existed. The penalty can run up to roughly $10,000 per violation, adjusted upward each year for inflation. In 2023 the Supreme Court held in Bittner v. United States that the non-willful penalty applies per annual report, not per account, which limited the damage for people with many accounts.

Willful

A knowing or reckless failure to file. The penalty can reach the greater of about $100,000, inflation-adjusted, or 50% of the account balance, and willful cases can carry criminal exposure.

The gap between the two outcomes is enormous, which is why how you fix a past problem matters as much as fixing it.

FBAR versus Form 8938

People often confuse the two. They overlap, but they are different filings:

  • FBAR (FinCEN Form 114) goes to the Treasury, separately, when foreign accounts exceed $10,000.
  • Form 8938 is a FATCA form filed with your tax return, with higher thresholds that depend on your filing status and whether you live in the U.S. or abroad.

Many people with Indian accounts have to file both. Filing one does not satisfy the other.

If you are behind on prior years

Do not quietly file the missing years on your own and hope. The IRS has specific correction programs, and choosing the wrong one can convert a non-issue into an examination:

  • Streamlined Filing Compliance Procedures, for taxpayers whose failure was non-willful. There is a domestic and a foreign version.
  • Delinquent FBAR submission procedures, when you reported and paid tax on the income but simply missed the FBAR.

The right path depends on your facts, especially whether the income was already reported. This is the moment to talk to a professional before anything is filed.

Where PCA fits

We handle FBAR and the rest of the cross-border picture, FATCA, Form 5471, and the U.S.-India treaty, as one engagement. See our cross-border tax practice, or read the companion guides on Form 5471 and the U.S.-India tax treaty.

This guide is general information, not tax advice, and dollar thresholds are adjusted for inflation each year. Your situation may differ. Please confirm the current-year figures and your specific filing obligations with a qualified CPA. See our full disclaimer.

FBAR questions we hear most

Do I need to file an FBAR if my accounts are in India?

Yes, if you are a U.S. person and the combined value of your foreign financial accounts, including accounts in India, was more than $10,000 at any point during the year. Where the bank sits does not change the rule.

Are NRE, NRO, and PPF accounts reportable?

Generally yes. NRE and NRO bank accounts, fixed deposits, and most Indian financial accounts such as PPF and demat accounts are foreign financial accounts and count toward the $10,000 threshold.

What if I forgot to file in prior years?

There are correction paths, including the Streamlined Filing Compliance Procedures for non-willful cases and the delinquent FBAR submission procedures. The right option depends on your facts, so speak with a cross-border CPA before you file anything.

Is the FBAR the same as Form 8938?

No. The FBAR is FinCEN Form 114, filed separately with the Treasury. Form 8938 is filed with your tax return under FATCA and has higher thresholds. Many people with Indian accounts must file both.

Not sure if you should have filed an FBAR?

Talk to Prabal directly about your accounts and prior years. No sales pitch, and what you share stays confidential.

Schedule a Private Consultation