FBAR & Foreign Income Reporting
Many immigrants and seniors have overseas accounts, pensions, or family joint accounts and do not realize the U.S. may require disclosure (FBAR/FATCA) and income reporting. This page explains the basics in plain English and shows a safe path to fix past years.
1) FBAR (FinCEN Form 114)
FBAR is not a tax form. It is a disclosure report for foreign financial accounts.
Trigger: if the total value of all foreign accounts exceeds $10,000 at any time during the year (even one day).
| Item | What it means |
|---|---|
| Filed with | FinCEN (U.S. Treasury), electronically |
| Deadline | April 15 (automatic extension to Oct 15) |
| Common accounts | Checking, savings, joint family accounts, some foreign pensions/investments |
2) IRS Form 8938 (FATCA)
Form 8938 is filed with your IRS tax return when foreign assets exceed certain thresholds.
Some taxpayers must file FBAR only, some 8938 only, and some must file both.
3) IRS Form 8948 (Why the return was not e-filed)
Form 8948 explains why a return was filed on paper instead of e-filed.
This can be relevant for seniors, disability, limited internet access, or other constraints that made e-file unreasonable.
4) Foreign Income Reporting
Foreign income can include overseas pensions, rental income, interest/dividends, and business/self-employment income.
Even if you paid tax abroad, U.S. reporting may still be required (rules vary by situation).
5) Streamlined Procedures (Fix past years for non-willful mistakes)
Streamlined filing compliance is designed for taxpayers who failed to report foreign income/accounts due to non-willful reasons (many immigrants and seniors simply didn’t know).
- 3 years of amended/late tax returns (commonly)
- 6 years of FBAR filings
- A signed explanation of non-willfulness
- Creates a legal path to correct past years
- Often reduces penalties when done correctly
- Helps you stay compliant going forward
Client Checklist (Bring this info)
- Country and bank name(s)
- Account type (savings, joint, pension, investment)
- Highest balance during the year (estimate OK to start)
- Who owns it / who has access / signature authority
- Pension statements (if any)
- Rental income records (if any)
- Interest/dividend statements (if any)
- Foreign taxes paid (receipts/summaries)
Recommended Resource
Translations
English Summary
FBAR & Foreign Reporting: If you are a U.S. person and your foreign accounts exceed $10,000 total at any time, you may need to file FBAR (FinCEN 114). You may also need IRS Form 8938 (FATCA) and must report foreign income. If you missed past years by mistake, Streamlined procedures may help fix it.
- FBAR (FinCEN 114): Disclosure of foreign accounts (not a tax form).
- Form 8938 (FATCA): Filed with your tax return for certain foreign assets above thresholds.
- Form 8948: Explains why a return was filed on paper instead of e-filed.
- Foreign income: Pensions, rental, interest, dividends, business income—may need to be reported.
- Streamlined: Often involves 3 years of returns + 6 years of FBARs with a non-willful statement.
አጠቃላይ መግለጫ (አማርኛ)
FBAR እና የውጭ ሀብት/ገቢ ሪፖርት: እርስዎ የአሜሪካ ታክስ ተከፋይ (U.S. person) ከሆኑ እና የውጭ ባንክ/ፋይናንስ መለያዎችዎ አጠቃላይ እሴት በአንድ ዓመት ውስጥ ቢያንስ አንድ ጊዜ $10,000 ቢሻገር ፣ FBAR (FinCEN 114) መሙላት ሊያስፈልግዎ ይችላል። በተጨማሪም IRS Form 8938 (FATCA) ሊያስፈልግ ይችላል እና የውጭ ገቢዎን በታክስ መመለሻዎ ላይ መሪፖርት ማድረግ ይኖርቦታል። ከቀድሞ ዓመታት ማስረጃ ካልተደረገ ፣ በስህተት/በዕውቀት እጥረት ከሆነ ፣ Streamlined ሂደት ሊረዳ ይችላል።
- FBAR (FinCEN 114): የውጭ መለያዎች መግለጫ ሪፖርት (ታክስ ቅጽ አይደለም)።
- Form 8938 (FATCA): ከታክስ መመለሻዎ ጋር ለአንዳንድ የውጭ ሀብቶች ከመጠን በላይ ሲሆን ይሞላል።
- Form 8948: መመለሻው ለምን በወረቀት ተላከ (e-file አልተደረገም) የሚገልጽ ቅጽ።
- የውጭ ገቢ: ፐንሽን፣ ቤት ኪራይ ገቢ፣ ወለድ/ዲቪደንድ፣ ንግድ ገቢ ወዘተ ሊሪፖርቱ ይችላሉ።
- Streamlined: ብዙ ጊዜ 3 ዓመት መመለሻ + 6 ዓመት FBAR እና “በፍትሕ ሳይሆን በስህተት” የሚለው መግለጫ ይጠይቃል።
Resumen (Español)
FBAR y reportes internacionales: Si usted es una “persona de EE. UU.” y el valor total de sus cuentas financieras en el extranjero supera $10,000 en cualquier momento del año, es posible que deba presentar el FBAR (FinCEN 114). También puede aplicar el Formulario 8938 (FATCA) con su declaración de impuestos, y debe reportar ciertos ingresos del extranjero. Si omitió años anteriores por desconocimiento (no intencional), los procedimientos Streamlined pueden ayudar a corregirlo.
- FBAR (FinCEN 114): Divulgación de cuentas extranjeras (no es un formulario de impuestos).
- Formulario 8938 (FATCA): Se presenta con la declaración de impuestos cuando se superan ciertos umbrales.
- Formulario 8948: Explica por qué se presentó la declaración en papel en lugar de e-file.
- Ingresos extranjeros: Pensiones, renta, intereses, dividendos, ingresos de negocio, etc.
- Streamlined: Frecuentemente incluye 3 años de declaraciones + 6 años de FBAR con una declaración de no intencionalidad.
Résumé (Français)
FBAR et déclarations internationales : Si vous êtes une “U.S. person” et que la valeur totale de vos comptes financiers à l’étranger dépasse 10 000 $ à n’importe quel moment de l’année, vous pourriez devoir déposer le FBAR (FinCEN 114). Vous pourriez aussi devoir joindre le Formulaire 8938 (FATCA) à votre déclaration d’impôts, et déclarer certains revenus étrangers. Si des années passées ont été manquées par méconnaissance (non intentionnel), la procédure Streamlined peut aider à corriger la situation.
- FBAR (FinCEN 114) : Déclaration des comptes étrangers (ce n’est pas un formulaire d’impôt).
- Formulaire 8938 (FATCA) : À joindre à la déclaration d’impôts si certains seuils sont dépassés.
- Formulaire 8948 : Explique pourquoi la déclaration a été envoyée sur papier plutôt que par voie électronique.
- Revenus étrangers : Retraites/pensions, loyers, intérêts, dividendes, revenus d’entreprise, etc.
- Streamlined : Souvent 3 ans de déclarations + 6 ans de FBAR avec une attestation de non-volonté.
Rezime (Kreyòl Ayisyen)
FBAR ak rapò sou kont/byen aletranje: Si ou se yon “U.S. person” epi valè total kont finansye ou aletranje depase $10,000 nenpòt moman pandan ane a, ou ka bezwen ranpli FBAR (FinCEN 114). Ou ka bezwen tou Fòm 8938 (FATCA) ansanm ak deklarasyon taks ou, epi ou dwe rapòte kèk revni aletranje. Si ou te rate kèk ane paske ou pa t konnen (pa t entansyonèl), pwosedi Streamlined ka ede w ranje sa.
- FBAR (FinCEN 114): Rapò sou kont aletranje (li pa yon fòm taks).
- Fòm 8938 (FATCA): Ranpli ak deklarasyon taks la si ou depase kèk limit.
- Fòm 8948: Eksplike poukisa ou te depoze sou papye olye de e-file.
- Revni aletranje: Pansyon, lwaye, enterè, dividann, revni biznis, elatriye.
- Streamlined: Souvan gen 3 ane deklarasyon + 6 ane FBAR ak yon deklarasyon “pa t entansyonèl”.
FAQs
Is FBAR the same as Form 8938?
No. FBAR (FinCEN 114) is filed with FinCEN. Form 8938 (FATCA) is filed with your IRS tax return. Some people must file both.
What if I never bring the money to the U.S.?
Reporting can still be required. The rules often depend on your U.S. status and the existence/value of foreign accounts/assets, not whether you transferred the money.
What if I missed years?
Many taxpayers correct past years using proper procedures. If your mistake was non-willful, Streamlined may be an option depending on facts.