FBAR deadlines and penalties follow; see the overview and the Corporate Transparency Act.
What do the Bank Secrecy Act and FBAR rules require?
| Duty | Rule |
|---|---|
| FBAR | File Form 114 through FinCEN's BSA E-Filing, not with the return, once the highest balances of the foreign accounts, added together, pass $10,000 in the year; keep records five years |
| Schedule B, Part III | On line 7a, answer Yes to the first question when you hold any interest in a foreign account, even if no FBAR is due (2025 form) |
| Form 8938 and Form 8300 | Form 8938 does not replace the FBAR. Form 8300 reports cash over $10,000 within 15 days |
Key numbers and dates: FBAR deadlines and penalties
| Item | Amount or date | Year |
|---|---|---|
| FBAR threshold | $10,000 combined | Unchanged |
| FBAR due dates | April 15, automatically extended to October 15 | 2026 for 2025 accounts (passed); 2027 for 2026 accounts |
| Non-willful penalty | Up to $16,536 per report | 2025 table |
| Willful penalty | Greater of $165,353 or 50% of the balance | 2025 table |
| Form 8938, year-end / any time | Unmarried in U.S. $50,000 / $75,000; joint in U.S. $100,000 / $150,000; unmarried abroad $200,000 / $300,000 | Current for 2025 and 2026 |
Source: IRS, FinCEN
What has changed, and what is pending?
- February 28, 2023: the Supreme Court held in Bittner that the non-willful maximum applies per report, not per account.
- January 17, 2025: latest FinCEN penalty table. We found none for 2026.
The Rupee-Loonie-Dollar Tally: a named checklist
- Call the roll of every account abroad: Indian bank and demat accounts, Canadian chequing, RRSP and TFSA. Include joint accounts, accounts you only sign for and those of a company you own over half of.
- Note each account's highest balance in its own currency, with bank details and account number.
- Convert to dollars per the FBAR step-by-step guide and add up.
- Compare the total with $10,000, and year-end and peak totals with your Form 8938 threshold.
- Answer Schedule B and file the FBAR by April 15 (automatic extension to October 15).
- Share the list with your Canadian CPA and Indian CA; a T1135 or Schedule FA may apply if you are also resident there.
What mistakes recur?
- Filing the FBAR with the tax return instead of through FinCEN.
- Testing $10,000 account by account instead of combined.
- Leaving out accounts you only sign for.
- Treating an RRSP or TFSA like a U.S. IRA.
When should you bring in an attorney?
- A letter from the IRS or FinCEN arrives, or foreign accounts went unreported and the conduct could look willful.
- Your cash pattern looks like structuring, or a bank shuts down an account.
- The business may count as a money services business, such as one moving money for others.
How can we help?
We prepare FBARs and Form 8938 for U.S. clients with accounts in India and Canada, working with your attorney, Canadian CPA or Indian CA so the reports agree. See foreign account and asset reporting and cross-border tax services.
Frequently asked questions
Can an Illinois LLC owned from India need an FBAR?
Yes, when the LLC itself holds foreign accounts above $10,000 combined.
Are RRSPs and TFSAs exempt like IRAs?
No. Foreign accounts owned by a U.S. IRA or certain U.S. plans fall under the exception; the IRS guide lists RRSPs and TFSAs as reportable.
What if I missed earlier years?
If the IRS has not contacted you, file late as soon as possible and explain. See IRS foreign reporting penalties.
Is there a 2026 penalty table?
None found; the figures above are the 2025 table.
Official sources
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- eCFR: 31 CFR 1010.350, reports of foreign financial accounts
- eCFR: 31 CFR 1010.821, penalty adjustment table
- IRS: Comparison of Form 8938 and FBAR requirements
- FinCEN: Residential real estate reporting
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.