What is FBAR?
FBAR stands for Foreign Bank Account Report. It's officially called FinCEN Form 114, filed with the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Treasury Department.
The purpose is simple: the US government wants to know if you have money in foreign bank accounts. It's not a tax — you don't pay anything when you file. It's just a disclosure requirement.
Who Needs to File FBAR?
You must file FBAR if you are a US person (which includes H-1B visa holders, green card holders, and US citizens) AND you have a financial interest in or signature authority over foreign financial accounts with an aggregate value exceeding $10,000 at any point during the calendar year.
This includes:
- Bank accounts in India, China, or any other country
- Investment accounts abroad
- Joint accounts (even if you're a co-holder with your parents)
- Accounts you have "signature authority" over (like a company account)
- Pension accounts abroad (like EPF in India)
💡 H-1B holders are considered US persons for FBAR purposes — even if you're not a permanent resident or citizen. This surprises many people in their first year.
The $10,000 Threshold Explained
The threshold is aggregate — meaning you add up the highest balances across ALL your foreign accounts during the year. If the combined total ever exceeded $10,000 USD at any single point, you must file.
For example: if you have ₹5,00,000 (~$6,000) in an SBI account and ₹3,50,000 (~$4,200) in an HDFC account, your aggregate is ~$10,200 — you must file FBAR.
Convert foreign currency to USD using the Treasury's December 31 exchange rates.
Deadlines for 2026
- Primary deadline: April 15, 2026
- Automatic extension: October 15, 2026 (no need to request — it's automatic)
- You file for the previous calendar year (so in 2026 you file for 2025)
How to File FBAR Step by Step
Step 1: Determine if you need to file
Log into all your foreign bank accounts and find the highest balance during 2025. Convert to USD. If aggregate ever exceeded $10,000 — proceed to Step 2.
Step 2: Gather account information
- Account number for each foreign account
- Name and address of each foreign bank
- Maximum value during the year (in USD)
- Your SSN or ITIN
Step 3: File online at FinCEN
Go to bsaefiling.fincen.treas.gov and click "File FBAR". No registration needed. The form takes about 30–60 minutes. Filing is completely free.
💡 Save your confirmation number after filing. It's your proof that you filed.
Penalties for Not Filing
- Non-willful violation: Up to $10,000 per violation per year
- Willful violation: Up to $100,000 or 50% of account balance — whichever is higher
- Criminal penalties: Up to 5 years in prison for willful violations
⚠️ "I didn't know" is not a valid defense for willful violations. If you had accounts that should have been reported, file now or consult a tax professional.
Special Notes for Indian H-1B Holders
Common accounts that Indian H-1B holders often forget to report:
- NRE/NRO accounts — yes, these must be reported
- PPF (Public Provident Fund) — reportable if balance exceeds threshold
- EPF (Employee Provident Fund) — reportable
- Joint accounts with parents — if you have signature authority, reportable
- Fixed deposits — reportable
Frequently Asked Questions
Do I need to pay tax on my foreign accounts?
FBAR is separate from tax. You might also need to report foreign income on your US tax return (Form 1040), but FBAR itself is just a disclosure — no payment required.
What if I missed filing last year?
File as soon as possible using the IRS Streamlined Filing Compliance Procedures for non-willful violations. Consult a tax professional.
Do I need to file FBAR if I closed the account?
Yes, if the account had over $10,000 at any point during the year before it was closed.