FBAR penalties, explained without the scare tactics
You've probably seen the numbers. They're real, but they're not what happens to most people. Here's how FBAR penalties actually work, and why coming forward on your own changes everything.
Living outside the U.S.? Find your country's guide.
The short version
- Non-willful: up to $16,536 per year (adjusted for inflation), per FBAR, not per account.
- Willful: up to the greater of $165,353 or 50% of the account balance, per violation.
- These are maximums. The IRS has discretion, and often asserts less.
- Under the Streamlined and delinquent FBAR procedures, qualifying filers pay no FBAR penalty at all.
1The amounts
| Type | Maximum penalty |
|---|---|
| Non-willful | $16,536 per FBAR year (the inflation-adjusted maximum since January 2025) |
| Willful | The greater of $165,353 or 50% of the balance at the time of the violation |
| Criminal (rare) | Fines and possible prosecution for willful, serious cases |
The IRS can generally assess FBAR penalties for six years from the FBAR due date. That's why the Streamlined procedures ask for six years of FBARs.
2The Bittner decision
In 2023, the U.S. Supreme Court decided in Bittner v. United States that the non-willful penalty applies per FBAR, not per account. Before that, the IRS argued that someone with ten accounts over five years could face fifty penalties. Now it's at most one non-willful penalty per year.
That made non-willful mistakes far less frightening.
3How to avoid them
- Only FBARs missing, income reported: the Delinquent FBAR Submission Procedures. No penalty if you meet the conditions. What the late-filing statement should say.
- Income also missing, not willful: the Streamlined Foreign Offshore Procedures (no penalty) or Domestic (5% instead).
- Willful: voluntary disclosure, with defined penalties instead of open-ended risk.
All of these routes, side by side: IRS tax amnesty options for expats. Not sure you had to file at all? The FBAR threshold checker adds up your accounts at the Treasury's rates.
Guides by country
Local accounts, pensions and tax treaties change how these rules play out. Each guide below covers them for one country, with its tax year and filing dates.
- Argentina
- Australia
- Austria
- Belgium
- Brazil
- Canada
- Chile
- China
- Colombia
- Costa Rica
- Croatia
- Cyprus
- Denmark
- Dominican Republic
- Ecuador
- France
- Germany
- Greece
- Hong Kong
- India
- Ireland
- Israel
- Italy
- Japan
- Malaysia
- Malta
- Mexico
- Netherlands
- New Zealand
- Norway
- Panama
- Philippines
- Poland
- Portugal
- Saudi Arabia
- Singapore
- South Africa
- South Korea
- Spain
- Sweden
- Switzerland
- Taiwan
- Thailand
- UAE
- United Kingdom
- Vietnam
Live somewhere else? We help there too.
Common questions
Does the IRS really charge these penalties?
For people who come forward on their own through the right procedure, generally no. The large penalties mostly show up in cases the IRS finds first, or where the conduct was willful.
Can I be penalized if I owed no tax?
Yes. FBAR penalties don't depend on owing tax. That's why the FBAR matters even when your U.S. tax is zero.
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Reviewed by Lewis Grunfeld, CPA. General information, not advice for your specific situation.