If you’re a U.S. expat with foreign accounts and just found out about your obligation to report them, you’re not alone. Many U.S. citizens living abroad are unaware they must file an FBAR (Foreign Bank Account Report) each year if the total value of their foreign financial accounts exceeds $10,000 at any point during the calendar year.
Missing this requirement doesn’t automatically mean you’re in trouble. Failing to file on time does not automatically subject you to penalties or audits. The IRS offers specific amnesty programs, and one of the most effective for taxpayers who weren’t aware of their obligation is the delinquent FBAR submission procedures.
This program is designed for individuals who file delinquent FBARs but do not need to amend tax returns and have not reported any undisclosed foreign income or assets. The goal is to help you become compliant without risking penalties for prior non-filing. If you qualify, there are no penalties assessed, making it a straightforward and risk-free way to catch up.
What Are the Delinquent FBAR Submission Procedures?
The delinquent FBAR submission procedures (also known as delinquent submission procedures) are part of a broader effort by the Internal Revenue Service to promote compliance with international tax reporting obligations. If you failed to file FBARs but reported all your income on your tax return and do not need to file amended tax returns, this program is likely the best option.
You simply submit the last six years of delinquent FBARs and select the reason for filing late from the drop-down menu within the BSA E-Filing system. There is no need to attach a separate statement—the explanation is handled directly in the electronic form. As long as the IRS determines that your failure to file was due to reasonable cause and not willful neglect, you will not be penalized.
Why Six Years?
The statute of limitations for FBARs is six years, which is why you need to file the six most recent years of FBARs. That’s all the IRS requires to bring you into full compliance under the fbar submission procedures.
How Much Does It Cost?
We offer a flat fee of $600 to assist with the delinquent FBAR submission.
This fee is the same no matter how many foreign accounts you need to report. Many other firms charge per account, but we believe in transparent, predictable pricing.
Who Qualifies for the Delinquent FBAR Submission Procedures?
You may qualify for these submission procedures if:
- You have not filed one or more FBARs for previous years.
- You reported all your income on your tax returns.
- You are not under a civil examination or criminal investigation by the IRS.
- You are not already in a voluntary disclosure program.
If you meet these criteria, you can file your delinquent FBAR without facing penalties.
Alternative Amnesty Programs
If you didn’t report all of your foreign income or need to file amended tax returns, you may need to consider the streamlined filing compliance procedures. Streamlined procedures taxpayers are generally non-willful individuals who need to report foreign income or unfiled international information returns. These procedures are broken down into:
- Streamlined Foreign Offshore Procedures: This streamlined procedure is designed for foreign residents.
- Streamlined Domestic Offshore Procedures: This streamlined procedure is for U.S. residents who failed to report foreign financial assets.
Both streamlined procedures require that the failure was non-willful and involve filing three years of amended tax returns and six years of FBARs. If you owe additional tax, you must pay additional tax when filing under these procedures.
As for the Offshore Voluntary Disclosure Program (OVDP), which was originally launched in 2009 for willful taxpayers, the IRS officially closed the program on September 28, 2018.
Reasonable Cause and Non-Willfulness
The concept of reasonable cause is critical. It means you didn’t know about the filing requirement and had no intent to avoid it. When you file delinquent FBARs, you must provide a reason for late filing. This helps establish non-willfulness and supports your eligibility for the delinquent FBAR submission procedures.
A willful taxpayer submits knowing they are failing to comply. If the IRS believes this is the case, they may refer your file to criminal investigation or civil examination, and you may become ineligible for favorable programs.
Why Choose Us?
We help U.S. expats file delinquent FBARs correctly and affordably. Our focus is on making the process simple, accurate, and penalty-free. Only a handful of board certified tax specialists focus exclusively on offshore disclosure and international tax reporting, and our firm is among them. We specialize in specifically expat tax matters.
Here’s what you get when you work with us:
- A flat $600 fee—no matter how many foreign accounts you have.
- No per-account charges, unlike many accounting firms.
- We file your FBARs using the proper fbar submission procedures (DFSP).
- We guide you in selecting the right reason for late filing in the e-filing system.
- We help you resolve delinquent FBARs review and navigate existing audit selection processes to minimize audit risk.
- You can hire offshore tax counsel through our firm for expert guidance.
- We work closely with financial advisors to ensure your reporting is accurate and compliant.
- We help you stay clear of international reporting penalties.
No hidden fees. No fluff. Just straightforward service for expats who need to get back in compliance.
When Should You Act?
If you haven’t filed FBARs for previous years, now is the time to act. The delinquent FBAR submission procedures are only available if the IRS hasn’t already contacted you. Once you’re under audit or investigation, you can no longer use this program and may face penalties.
By acting early, you can avoid penalties, keep your options open, and use the available amnesty program to get compliant the easy way.
Need Help with Late FBAR Filing?
You don’t have to navigate FBAR compliance alone. Whether you’re a U.S. person living abroad or a foreign national with unreported foreign accounts, the delinquent FBAR submission procedures allow you to regain compliance with the IRS—without penalties.
We’re here to help you understand your obligations, file your FBARs correctly, and avoid costly mistakes. If you have any questions or concerns, we offer free tax advice to all US Expats—just reach out to us anytime. Flat fee. No surprises. Maximum peace of mind.
