FBAR instructions: How to report your financial accounts

If you have foreign bank accounts, you may have to file an FBAR report every year. The Report of Foreign Bank and Financial Accounts (FBAR) is a mandatory filing for US persons who have more than 10,000 USD in their foreign bank accounts at any point during the year.¹

If you fall under the FBAR threshold, you're likely wondering about how to file your report. Here are complete FBAR instructions, from determining if you need to file to submitting your report electronically.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

Learn more 🔎

Table of contents
What is FBAR, and why is it necessary? FBAR filing: Step-by-step instructions Best practices for FBAR compliance

What is FBAR, and why is it necessary?

FBAR is an annual report that US citizens and residents must file with the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury.

It requires you to disclose your foreign financial accounts if they exceed the 10,000 USD threshold at any point during the year. This threshold is aggregate, which means you add up the maximum balances of all your foreign accounts to see if you hit 10,000 USD.¹

Even if no single account reaches 10,000 USD, you still need to file if the total does.¹

FBAR rules apply to:

• US citizens
• US residents
• Corporations, partnerships, and LLCs
• Trusts and estates

They also apply whether you live in the US or you're an American living abroad.

💡 Keep in mind that FBAR is a reporting requirement. It's not a tax, and you won't owe any additional foreign income taxes just because you file an FBAR.

However, not filing on time can lead to serious penalties, so make sure to follow these FBAR instructions.

FBAR filing: Step-by-step instructions

1. Figure out if you need to file

First, you need to check if you meet the filing requirements. You need to file an FBAR if:¹²

• You're a US person (citizen or tax resident)
• You had a financial interest in or signature authority over foreign financial accounts
• The total maximum value of all these accounts combined exceeded 10,000 USD at any point during the calendar year

It might be confusing to understand what "financial interest" and "signature authority" mean.

• "Financial interest" means you own the account or control it. For example, you have a financial interest if your name is on the account as the owner or if someone else holds the account for you (like an agent, nominee, or attorney).
• "Signature authority" means you can control what happens with the money in the account by communicating directly with the bank, even if you don't own the account. This often applies to employees who can authorize transactions on their employer's foreign accounts.

Certain types of financial accounts don't fall under FBAR reporting, including accounts held in US-based IRAs and accounts maintained at US military banking facilities.

2. Gather your documents

Before you start filling out the form, collect this information for each of your foreign accounts:

• Account numbers
• Names and addresses of the financial institutions
• Account types (bank account, securities account, or other)
• Maximum account values during the year
• Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)

Having all of this information organized before you start filling out the FBAR form will make the process go much quicker because you'll have accurate data to plug in.

3. Calculate maximum account values

For each account, you need to figure out the highest balance during the calendar year in USD.

Here's how to do that:

1. Look at your account statements to find the highest balance
2. Use the Treasury's exchange rate from December 31st of the reporting year to convert all foreign currencies into USD²
3. Round up all amounts (ex, 15,265.25 becomes 15,266)
4. If your account calculation is negative, enter zero (0) as the maximum account value

This step will likely take you the longest amount of time, since it involves quite a lot of math. However, these calculations and currency conversions are very important.

4. Access the BSA E-filing system

You must file FBAR electronically. You'll use the FinCEN Form 114. There's no paper filing option unless you get special permission from FinCEN.¹

To start the process, go to bsaefiling.fincen.treas.gov to access the filing system.

As an individual, you don't need to register or create an account. You can file directly through the website. Only institutions need to register for credentials.

5. Complete Part I - Your personal information

The first section of the FBAR report will ask you for pretty basic information, including:²

• Filer type: For most people, this will be "Individual"
• Taxpayer Identification Number: Enter your SSN or ITIN without any dashes or spaces
• Date of birth: Use the format MM/DD/YYYY
• Your name: Enter your first name, middle initial, and last name in the separate fields
• Address: Provide your US mailing address or foreign address if you live abroad
• Number of accounts: Indicate whether you have 25 or more accounts

If you have more than 25 foreign financial accounts, you'll only need to enter the total number and keep detailed records. You won't have to fill out information for each individual account.

6. Complete account information sections

Depending on your situation, you'll fill out different parts of the form:

• Part II (Accounts you own individually): Fill this out for any foreign accounts that are just in your name
• Part III (Jointly owned accounts): Use this section for accounts you share with someone else, such as your spouse
• Part IV (Signature authority only): Fill this out if you have authority over accounts that aren't yours, like employer accounts where you're authorized to make transactions

For all of these, you'll need to provide information like the account number, maximum account value in USD, and other details depending on the account type. Some parts are more extensive than others.

7. Review special circumstances

Before you submit, check if any special situations apply to you:

• Joint filing with spouse: Make sure you've both completed Form 114a if you're filing one report together¹
• Filing for a child: If you're filing for your child who can't file themselves, enter "Parent/Guardian filing for child" in the filer title field
• Signature authority over employer accounts: You may be exempt from reporting these, depending on your employer type
• 25 or more accounts: If you indicated 25+ accounts earlier, you only need to provide identifying information with no detailed account data

If you have any questions during your FBAR filing, it's often a good idea to consult with a qualified tax professional. They can clarify any questions you may have.

8. Review your FBAR report

Before you submit, double-check that you filled out all of the required fields and that the information you provided is correct. The system will also validate your report and flag any formatting errors, such as spaces or dashes in account numbers.

9. Sign and submit

Once everything looks correct, it's time to sign the FBAR and submit it through the BSA E-Filing System.

After you submit, you'll receive a BSA Identifier number via email. Make sure to save this number because you'll need it if you ever have to modify your FBAR.

10. Maintain records

Keep your FBAR documentation for 5 years from the filing deadline (April 15th, or your actual filing date if you filed later). FinCEN or the IRS may request them for inspection.¹

Important deadlines

The FBAR filing deadline is April 15th, but you get an extension until October 15th. You don't need to request it. FinCEN grants it automatically to everyone who misses the April 15th deadline.²

If you file after the extended deadline, the BSA E-Filing System will ask you to select a reason for filing late from a dropdown menu.

Best practices for FBAR compliance

FBAR isn't a complicated form to file, but keep these tips in mind:

• Track your foreign account balances monthly to know when you hit the 10,000 USD threshold
• Save all account statements and keep them organized by year
• Set a calendar reminder for the April 15th filing deadline
• Remember that FBAR is separate from FATCA reporting, which may also apply to you

Also, remember that FBAR is just a reporting requirement. However, any income you earn from your foreign financial accounts needs to be reported on your regular tax return, and you may owe taxes on it.

Learn more about US taxes for citizens living abroad.

---

If you live abroad or split your time between the US and other countries, your financial life is often complicated.

Digital nomads, expats, and frequent travelers often juggle multiple bank accounts and currencies. This usually involves extra paperwork to open bank accounts and high fees when you move your money.

When your bank accounts are in different currencies, money transfers also come with unfavorable exchange rates that can cost you hundreds or even thousands of dollars in large amounts.

If you want to simplify your financial life and pay less in transfer costs, try Wise.

With the Wise account, you can top up your USD with a domestic transfer that you will be able to convert at the mid-market rate with an upfront conversion fee.

Get a Wise Account
in minutes 💰

Sources

1. IRS - Report of Foreign Bank and Financial Accounts (FBAR)
2. Financial Crimes Enforcement Network - BSA Electronic Filing Requirements For Report of Foreign Bank and Financial Accounts (FinCEN Form 114)

Sources checked 12/08/2025