FBAR (FinCEN 114)
Report of Foreign Bank and Financial Accounts
FBAR — formally FinCEN Form 114 — is the US Treasury report required when a US person's aggregate foreign financial accounts exceed $10,000 USD at any point during the year. Filed separately from your tax return via the FinCEN BSA E-Filing System. Penalties for non-filing are among the most aggressive in the US tax code, but the Streamlined Filing Compliance Procedures eliminate penalties for voluntary disclosure.
⚠️ Important Disclaimer
This content is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws change frequently — always verify with the CRA and IRS or consult a qualified cross-border tax accountant before making decisions.
April 15 (automatic extension to October 15)
US persons (citizens, green card holders, substantial presence test passers) with Canadian or other foreign bank accounts over $10,000
Key Takeaways
- FBAR applies only to US persons — US citizens (including dual citizens), green card holders, and US tax residents under Substantial Presence Test. Canadian residents who are not US persons are exempt.
- Triggered when aggregate foreign financial account balance exceeds $10,000 USD at ANY point during the year — across all accounts combined, on any single day.
- Filed with FinCEN (not the IRS) via the BSA E-Filing System (bsaefiling.fincen.treas.gov). Electronic-only — no paper filing.
- Deadline: April 15 with automatic extension to October 15 (no extension request needed).
- Penalties: up to ~$15,000 per non-willful violation per year. Streamlined Filing Compliance Procedures eliminate penalties for voluntary disclosure before IRS contact.
What is FBAR?
FBAR is a US Treasury reporting requirement administered by FinCEN under the Bank Secrecy Act. It exists to give the US government visibility into the foreign financial holdings of US persons — primarily as anti-money- laundering and tax-evasion enforcement.
- Information return, not a tax return. No tax is paid through FBAR — it's a balance report.
- Filed with FinCEN directly, separately from your IRS tax return. The submission system is the BSA E-Filing System at
bsaefiling.fincen.treas.gov. - Has its own deadline and penalty structure independent of your income tax return.
Who must file FBAR?
FBAR applies to US persons:
- US citizens — regardless of where they live. Dual citizens (Canadian + US) qualify as US persons for FBAR.
- Green card holders — until formally surrendered, regardless of current residency.
- US tax residents under Substantial Presence Test — non-US-citizens spending 183+ weighted days in the US over current and prior two years.
- US trusts and estates
Canadian residents who are NOT US persons are NOT subject to FBAR. Owning US rental property alone does not make you a US person. The trigger is personhood, not property ownership.
The $10,000 threshold
- Aggregate across all foreign accounts — $6,000 in one Canadian account + $5,000 in another = $11,000 aggregate = FBAR triggered.
- At any point during the year — not year-end. A briefly-inflated balance triggers FBAR for that year.
- USD conversion at year-end Treasury rate (not Bank of Canada). Use the Treasury Reporting Rates of Exchange for December 31.
- Includes signature authority, not just ownership. A Canadian corporate account you have signing authority over (small business you control, etc.) counts even if you don't own it.
Penalties and the Streamlined recovery path
FBAR penalties are intentionally punitive:
- Non-willful violations: up to ~$15,000 per violation (per year). Each year of missed FBAR is a separate violation. 5 years missed = up to $75,000.
- Willful violations: up to the greater of $100,000 or 50% of account balance per violation.
- Criminal penalties for willful violations involving illegal activity — rare but theoretically applicable.
Streamlined Filing Compliance Procedures substantially reduce penalties (often to zero) for taxpayers who voluntarily come into compliance before the IRS contacts them. Application before IRS contact is essential. Specialized cross-border CPA assistance is strongly recommended for the Streamlined process.
Frequently asked questions
Do Canadian residents need to file FBAR?
Only if they are a US person — US citizen, green card holder, or US tax resident under Substantial Presence Test. A Canadian-resident Canadian citizen with no US citizenship and under-183 days US presence is exempt from FBAR even with US rental property. The trigger is being a US person, not being a US property owner.
What's the FBAR deadline?
April 15 with automatic extension to October 15. No extension request required — the October 15 extension is automatic for all FBAR filers. The election applies to FBAR specifically; your income tax return extensions are separate.
Is FBAR the same as Form 8938?
No. FBAR (FinCEN 114) is filed with FinCEN at $10,000 aggregate threshold, covering bank and financial accounts. Form 8938 (FATCA) is filed with the IRS as an attachment to your 1040, at higher thresholds ($50k+), covering a broader set of foreign financial assets. Both can apply to the same filer simultaneously.
What if I missed FBAR for multiple years?
Use the Streamlined Filing Compliance Procedures to voluntarily come into compliance. The Streamlined program substantially reduces or eliminates penalties for taxpayers who file before the IRS contacts them. Specialized cross-border CPA assistance is essential — the program has specific eligibility requirements and procedural steps.
Do I report my US bank account on FBAR?
No — FBAR is about foreign accounts from the US perspective. A US bank account is domestic to the US, so not reportable on FBAR. Canadian bank accounts, however, are foreign from the US perspective and triggered FBAR for US persons over the $10k threshold.
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