Updated 6 min readBy the Elite B Taxes team
Quick answer
You must file an FBAR (FinCEN Form 114) if you are a U.S. person and the combined highest balances of all your foreign financial accounts were more than $10,000 at any time during the year. It is filed electronically with FinCEN — not with your tax return — and is due April 15, with an automatic extension to October 15.
Key points
- The $10,000 test uses the total of every account's highest balance during the year, not each account separately.
- Indian savings, NRO/NRE, fixed deposits and many investment accounts count.
- Filing an FBAR does not by itself create tax — it is an information report.
- Missed FBARs can often be fixed through IRS-approved procedures before the IRS contacts you.
Who counts as a "U.S. person" for FBAR?
U.S. citizens, green card holders and anyone who meets the substantial presence test for the year are U.S. persons for FBAR purposes. That includes many H-1B, L-1 and other visa holders who live and work in the U.S.
U.S. entities — LLCs, corporations, partnerships and trusts — can also have an FBAR requirement for their foreign accounts.
Which foreign accounts are reportable?
Most accounts held at a financial institution outside the U.S. are reportable when you own them or have signature authority over them, including:
- Savings and current accounts, including NRE and NRO accounts in India
- Fixed and recurring deposits
- Brokerage, demat and mutual fund accounts
- Some foreign insurance policies and pension accounts with a cash value
- Joint accounts — each owner generally reports the full balance
How is the $10,000 threshold calculated?
Find the highest balance each account reached during the calendar year, convert it to U.S. dollars using the Treasury year-end exchange rate, and add the results together. If that total is more than $10,000, every account must be listed — even the small ones.
When is the FBAR due?
The FBAR is due April 15 following the calendar year being reported. FinCEN grants an automatic extension to October 15, so you do not need to request it.
FBAR vs. FATCA Form 8938 — do I need both?
They are separate reports with different thresholds. The FBAR goes to FinCEN; Form 8938 (FATCA) is attached to your income tax return and has higher thresholds that depend on your filing status and where you live. Many people with Indian accounts need to file both.
What if I missed FBARs in earlier years?
Don't ignore it. If you have not been contacted by the IRS, there are established procedures for filing late FBARs — and when the income was already reported correctly, penalties can often be avoided. The right path depends on your facts, so speak to a professional before filing anything late.
This guide is general information, not tax or legal advice for your situation. Tax rules change — talk to a professional before acting.