How to file FBAR for previous years online means submitting delinquent FinCEN Form 114 through the BSA E-Filing System. Taxpayers must disclose foreign accounts exceeding $10,000, provide explanations for late filing, and use IRS-approved procedures such as Delinquent FBAR Submission or Streamlined Filing to minimize penalties.
Key Takeaways
- FBAR filing threshold: aggregate foreign accounts over $10,000.
- All filings must be submitted via FinCEN’s BSA E-Filing System.
- Late filings require a written explanation statement.
- Streamlined Filing may eliminate penalties for non-willful violations.
- Severe civil and criminal penalties apply for willful non-compliance.
Foreign Bank Account Reporting (FBAR) is one of the most scrutinized compliance obligations for U.S. taxpayers with international financial accounts. Filing for previous years is not optional—delinquent FBARs can trigger substantial civil penalties and even criminal exposure. The IRS has intensified enforcement, targeting expats, CFOs, and high-net-worth individuals who fail to disclose offshore holdings. Understanding the process of correcting past omissions is critical for compliance remediation, tax liability management, and asset seizure prevention.
In this guide, we explain the statutory framework, filing thresholds, and step-by-step procedures to file FBARs for prior years online. Whether you are an expatriate with dormant accounts or a corporate officer managing global subsidiaries, this article provides the clarity needed to navigate IRS and FinCEN requirements.
What Is FBAR and Why It Matters
The FBAR, formally known as FinCEN Form 114, is mandated under the Bank Secrecy Act (31 U.S.C. §5314). It requires U.S. persons—including citizens, residents, and certain entities—to report foreign financial accounts if the aggregate value exceeds $10,000 at any time during the calendar year. Unlike IRS tax forms, FBAR is filed electronically with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury.
FBAR compliance is distinct from FATCA (Form 8938), though both aim to increase transparency of offshore assets. Failure to file FBAR can result in penalties ranging from $10,000 per non-willful violation to the greater of $100,000 or 50% of the account balance for willful violations. Criminal charges may also apply under 31 U.S.C. §5322.
For taxpayers, FBAR is more than a reporting obligation—it is a safeguard against accusations of tax evasion and money laundering. Proper filing demonstrates proactive compliance, reduces exposure to IRS audits, and protects against reputational damage in financial markets.
Key entities linked to FBAR include:
- FinCEN – Oversees BSA compliance and manages the BSA E-Filing System.
- IRS – Enforces penalties and integrates FBAR data into tax compliance reviews.
- Foreign Financial Institutions – Provide account statements necessary for accurate reporting.
In short, FBAR matters because it bridges U.S. tax law, anti-money laundering policy, and global financial transparency. Filing for previous years ensures that taxpayers close compliance gaps before they escalate into costly enforcement actions.
Filing Thresholds and Deadlines
FBAR filing is triggered when the aggregate value of all foreign financial accounts exceeds $10,000 at any point during the calendar year. This threshold applies to checking, savings, securities, mutual funds, and even certain foreign retirement accounts. The statutory basis is found in 31 C.F.R. §1010.350.
The annual deadline is April 15, with an automatic extension to October 15. For delinquent years, taxpayers must file retroactively through the BSA E-Filing System. Importantly, the IRS does not accept paper FBAR filings.
Penalties are indexed for inflation and updated annually. As of in year, non-willful violations can incur penalties up to $15,611 per account per year, while willful violations may reach $161,166 or 50% of the account balance, whichever is greater. Criminal penalties include fines up to $500,000 and imprisonment up to 10 years under 31 U.S.C. §5322.
Deadlines and thresholds are not negotiable. Even accounts closed during the year must be reported if they contributed to the $10,000 aggregate threshold. This nuance often surprises taxpayers who assume dormant or terminated accounts are exempt.
Understanding these thresholds and deadlines is the foundation for correcting past FBAR omissions. In the next section, we explore whether and how taxpayers can file FBARs for previous years without triggering maximum penalties.
Can You File FBAR for Previous Years?
Yes, taxpayers can file FBAR for previous years online. The IRS and FinCEN provide specific procedures for delinquent filings. These include the Delinquent FBAR Submission Procedures, Streamlined Filing Compliance Procedures, and the Voluntary Disclosure Practice. Each pathway addresses different compliance scenarios and determines whether penalties will apply.
The Delinquent FBAR Submission Procedures are available if you failed to file FBARs but have no unreported income and are not under IRS examination. In this case, you may file late FBARs electronically with a statement explaining the reason for delinquency. The IRS generally will not impose penalties for non-willful violations under this program.
The Streamlined Filing Compliance Procedures are designed for taxpayers who failed to file FBARs and related tax returns due to non-willful conduct. This program requires filing amended tax returns for the past three years and FBARs for the past six years. A certification of non-willfulness is mandatory. Penalties are reduced to 5% of the highest aggregate balance of unreported accounts, or waived entirely for foreign residents.
The Voluntary Disclosure Practice applies to taxpayers whose failure to file FBARs may be considered willful. This program is more complex, requiring extensive disclosure, cooperation, and payment of penalties. However, it provides a pathway to avoid criminal prosecution and asset seizure.
Hidden nuance: The IRS retains discretion in determining penalty relief. Even under streamlined procedures, incomplete or inaccurate disclosures can trigger full penalties. Therefore, professional guidance is strongly recommended.
How to File FBAR for Previous Years Online
- Gather Account Information: Collect details of all foreign accounts, including bank name, account number, maximum balance, and country.
- Access BSA E-Filing System: Visit the official FinCEN BSA E-Filing portal and create an account if necessary.
- Select “Late Filing Reason”: When filing for prior years, indicate the reason for delinquency in the designated field.
- Complete FinCEN Form 114: Enter account details accurately. Ensure balances are reported in U.S. dollars using the Treasury’s year-end exchange rates.
- Attach Explanation Statement: Provide a concise but clear explanation for late filing. This is critical for penalty relief consideration.
- Submit Electronically: Review all entries carefully before submission. Once filed, you will receive a confirmation email.
- Retain Confirmation: Save the electronic confirmation for your records. This proof of compliance may be required in future IRS audits.
- Consider Streamlined Filing: If tax returns are also delinquent, integrate FBAR filings with streamlined procedures to ensure comprehensive compliance remediation.
This process ensures that delinquent FBARs are filed correctly and that taxpayers demonstrate good faith compliance to the IRS and FinCEN.
Hypothetical Scenario
Consider an expatriate CFO who discovers unreported Swiss accounts from 2019 to 2021. The aggregate balance exceeded $500,000, triggering FBAR obligations. The CFO failed to file due to misunderstanding FATCA requirements. Upon discovery, the CFO files delinquent FBARs through the BSA E-Filing System and enters the Streamlined Filing Compliance Procedures. By certifying non-willfulness and amending tax returns, the CFO reduces penalties to 5% of the highest balance, avoiding potential asset seizure and criminal charges.
This scenario illustrates the importance of proactive compliance remediation. Filing FBARs for previous years online can transform a high-risk liability into a manageable tax obligation.
Comparison of FBAR Filing Options for Previous Years
| Procedure | Eligibility | Penalty Relief | Complexity | Best For |
|---|---|---|---|---|
| Delinquent FBAR Submission | No IRS contact, non-willful | Full relief | Simple | Expats with missed FBAR only |
| Streamlined Filing | Non-willful, tax returns delinquent | Reduced penalties (5%) | Moderate | High Net Worth Individuals, CFOs |
| Voluntary Disclosure | Willful violations | Limited relief | Complex | High-risk taxpayers |
Common Pitfalls & Pro Tips
Common Pitfalls
- Assuming FATCA Form 8938 filing covers FBAR obligations.
- Ignoring small accounts that collectively exceed $10,000.
- Failing to use Treasury exchange rates for currency conversion.
- Submitting incomplete or inaccurate account details.
- Not retaining electronic confirmation of filing.
Pro Tips
- Always retain electronic confirmation emails for compliance defense.
- Consult an international tax attorney for voluntary disclosure cases.
- Use compliance remediation early to avoid asset seizure.
- File FBARs even for closed accounts if they contributed to threshold.
- Document non-willfulness thoroughly to qualify for streamlined relief.
FAQs
- Can I file FBAR for previous years online? Yes, through the BSA E-Filing System with explanation statements.
- Do I need to file FBAR for accounts closed years ago? Yes, if they contributed to the $10,000 threshold during the year.
- What penalties apply for late FBAR filing? Non-willful penalties up to $15,611 per violation; willful penalties up to $161,166 or 50% of account balance.
- How does Streamlined Filing differ from Delinquent FBAR Submission? Streamlined requires amended tax returns and certification of non-willfulness, while delinquent FBAR submission applies only if tax returns are current.
- Can expats avoid penalties if filing late? Yes, foreign residents may qualify for full penalty waiver under streamlined procedures.
- Is FBAR required if FATCA Form 8938 is filed? Yes, FATCA does not replace FBAR obligations.
- How long does the IRS keep FBAR records? Typically six years, but records may be retained longer for enforcement purposes.
- What happens if I ignore delinquent FBARs? Risk of civil penalties, criminal prosecution, and asset seizure.
Conclusion
Filing FBAR for previous years online is a critical step in compliance remediation. By using the BSA E-Filing System and IRS-approved procedures, taxpayers can correct past omissions, reduce tax liability, and prevent asset seizure. Whether through delinquent submission, streamlined filing, or voluntary disclosure, proactive action ensures that taxpayers remain compliant and avoid severe penalties. Ultimately, how to file FBAR for previous years online is straightforward when approached with diligence, accuracy, and professional guidance.