FBAR filing: who must file FinCEN Form 114, deadlines and penalties

The Report of Foreign Bank and Financial Accounts, FinCEN Form 114, is the foreign account disclosure most Americans in the UK have to file every year. It is not a tax form and nothing is owed on the accounts themselves, but the penalties for not filing are significant, so it deserves the same care as the return.

What the FBAR is

The FBAR is filed with the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Treasury, not with the IRS. It comes from the Bank Secrecy Act rather than the tax code, which is why it is filed separately from Form 1040 through the BSA E-Filing System. Whether you owe any US tax is irrelevant to whether you must file it.

Who must file

You must file if all three apply:

• You are a US person: a US citizen, green card holder, US resident alien, or a US entity (company, partnership, LLC or trust).
• You have a financial interest in, or signature authority over, one or more financial accounts outside the US.
• The combined maximum value of all those accounts exceeded US$10,000 at any point in the calendar year.

The test is aggregate. Five UK accounts each holding £1,500 can cross the line together even though none does on its own. It also uses the highest balance during the year, not the year-end balance, so money that passed through briefly still counts.

Which UK accounts are reportable

The definition of a foreign financial account is wide:

• Current, savings and deposit accounts, including cash ISAs
• Investment and brokerage accounts, including stocks-and-shares ISAs held on a platform
• Unit trust, OEIC and fund accounts
• Pension accounts, including SIPPs and most defined contribution workplace schemes (see below)
• Insurance and annuity contracts with a cash value
• Premium Bonds and other NS&I products
• Joint accounts, which each US account holder reports in full

UK pensions

A SIPP or a defined contribution workplace pension that you can direct is generally reportable, using the highest value in the year. Defined benefit (final salary) schemes and the state pension are treated differently and the position should be stated explicitly in your workings rather than assumed. We record the treatment we apply so it is consistent from year to year.

Deadlines

The FBAR for a calendar year is due on 15 April of the following year, with an automatic extension to 15 October. You do not need to ask for the extension. For 2025 accounts the dates are 15 April 2026 and 15 October 2026. The deadline is independent of your tax return deadline.

Valuing accounts

Report each account's maximum value during the year, converted to US dollars using the Treasury Reporting Rate of Exchange for 31 December of that year. Use the same rate for every account in the same currency.

Penalties

The statutory penalty for a non-wilful violation is US$10,000, adjusted annually for inflation. Following the Supreme Court's 2023 decision in Bittner v. United States, the non-wilful penalty applies per report, not per account. Wilful violations carry the greater of US$100,000 (inflation-adjusted) or 50% of the account balance, and can be prosecuted criminally. These are maximums; what is actually assessed depends on the facts, and nobody can promise a particular outcome.

FBAR and Form 8938 are different forms

Form 8938 (FATCA) goes to the IRS with your return, has much higher thresholds for people living abroad, and covers a broader set of assets. Many Americans in the UK must file the FBAR but not Form 8938; some must file both. Filing one does not satisfy the other. Our FATCA guide sets out the differences.

Catching up on missed FBARs

If you have missed years, the right route depends on whether income was also unreported:

• Streamlined Foreign Offshore Procedures where returns or income were also missed: three years of returns, six years of FBARs and a signed Form 14653 certification. If accepted, no FBAR, failure-to-file or accuracy penalties are applied; tax and interest remain due. See our Streamlined filing service.
• Delinquent FBAR Submission Procedures where all income was reported and only the FBARs were missed: file the late FBARs electronically with an explanation. The IRS states that no penalty is imposed where the income was properly reported and tax paid.

Both routes are only available before the IRS contacts you about the accounts.

Frequently asked questions

Do I file an FBAR if I owe no US tax?

Yes. The FBAR has nothing to do with tax owed. If your UK accounts together exceeded US$10,000 at any point, you file.

My only account is a joint account with my British spouse. Do I report it?

Yes, in full, if it exceeded the threshold. Your spouse has no FBAR obligation unless they are also a US person.

Which exchange rate do I use?

The US Treasury Reporting Rate of Exchange for 31 December of the year you are reporting. For 2025 accounts, the 31 December 2025 rate.

Does an ISA need to be reported?

Yes. An ISA is a UK tax wrapper; the US does not recognise it. The account is reportable on the FBAR, the income inside it is taxable in the US, and funds held within it are often PFICs with their own reporting.