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2025 FBAR Compliance Guide

January 10, 2025

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Under federal law, U.S. taxpayers who hold qualifying offshore accounts (and certain other foreign financial assets) must report these assets to the U.S. Treasury on an annual basis. In many cases, taxpayers must file two separate forms—with two separate federal entities—to meet their reporting obligations. One of these forms, the Report of Foreign Bank and Financial Accounts (FBAR), must be filed with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). The other, Form 8938, must be filed with the Internal Revenue Service (IRS). Learn more from Texas FBAR attorney Lawrence Brown.

FBAR vs. Form 8938 Compliance for U.S. Taxpayers

The FBAR and Form 8938 filing requirements are remaining substantially the same for 2025. As a result, U.S. taxpayers who have been effectively managing offshore account reporting compliance should continue doing what they have done in the past.

For those who need to file an FBAR or Form 8938 for the first time—or who may not be up-to-date on their offshore account reporting requirements—a proactive approach to compliance will be critical going forward. The IRS has prioritized compliance in this area in recent years, and non-compliance can expose high-income and high-net-worth taxpayers to significant penalties.

So, what is the difference between the FBAR and Form 8938? When must taxpayers file one or the other, and when must taxpayers file both?

The FBAR filing requirement applies exclusively to offshore accounts, though not strictly to bank accounts. As the IRS explains, “Every year, you must report certain foreign financial accounts, such as bank accounts, brokerage accounts, and mutual funds, to the Treasury Department and keep certain records of those accounts.” As the IRS goes on to explain, “[g]enerally, an account at a financial institution located outside the United States is a foreign financial account[ and w]hether the account produced taxable income has no effect on whether the account is a foreign financial account for FBAR purposes.”

In contrast, the Form 8938 filing requirement applies to a broader set of foreign financial assets. Along with foreign financial accounts, U.S. taxpayers may need to file Form 8938 to report foreign securities, foreign financial instruments, and interests in foreign businesses, among other international holdings.

2025 FBAR Filing Threshold

Both the FBAR and Form 8938 filing requirements are subject to dollar-amount thresholds. The FBAR filing threshold remains unchanged for 2025. This means that U.S. taxpayers must file an FBAR to report their offshore accounts if the aggregate value of these accounts exceeded $10,000 at any time during the 2024 calendar year.

When U.S. taxpayers are required to file an FBAR, they must disclose all of their offshore accounts, even if certain accounts aren’t necessary to meet the $10,000 filing threshold. For example, if a taxpayer holds two offshore accounts that had maximum values of $5,000 and $50,000 in 2024, respectively, both accounts will need to be reported in 2025.

2025 Form 8938 Filing Thresholds

The Form 8938 filing thresholds also remain unchanged for 2025. Under the Foreign Account Tax Compliance Act (FATCA), the filing thresholds for Form 8938 are:

  • Unmarried Individuals Living in the U.S.: The total value of foreign financial assets exceeded $50,000 on the last day of the 2024 tax year or exceeded $75,000 at any time during the year.
  • Married Individuals Living in the U.S. and Filing Jointly: The total value of foreign financial assets exceeded $100,000 on the last day of the 2024 tax year or exceeded $150,000 at any time during the year.
  • Unmarried Individuals Living Abroad: The total value of foreign financial assets exceeded $200,000 on the last day of the 2024 tax year or exceeded $300,000 at any time during the year.
  • Married Individuals Living Abroad and Filing Jointly: The total value of foreign financial assets exceeded $400,000 on the last day of the 2024 tax year or exceeded $600,000 at any time during the year.
  • Domestic Entities: The total value of foreign financial assets exceeded $50,000 on the last day of the 2024 tax year or exceeded $75,000 at any time during the year.

Married individuals who file their federal tax returns separately are subject to the same filing thresholds as unmarried individuals.

2025 FBAR and Form 8938 Filing Deadlines

The deadline for filing an FBAR for 2024 is April 15, 2025. However, all taxpayers receive an automatic extension until October 15, 2025. Under FATCA, taxpayers must file Form 8938 when they file their annual return. For those planning to file on Tax Day, that date is April 15, 2025.

Dealing with Past FBAR and Form 8938 Filing Deficiencies

Many U.S. taxpayers are behind on their FBAR and Form 8938 filing obligations. If you have failed to report offshore accounts or other foreign financial assets to the IRS or FinCEN in the past, you will want to consult with an experienced Texas FBAR attorney promptly. Both civil and criminal penalties can apply, which means that taxpayers can face both substantial fines and prison time.

Deciding how to deal with an FBAR or Form 8938 filing deficiency requires a case-by-case assessment. However, one approach that taxpayers generally should not take is simply to file a late FBAR or include prior years’ disclosures on an FBAR or Form 8938 filed in 2025. This can trigger scrutiny from the IRS without any protections in place.

To secure protections, taxpayers may need to use the IRS’s Streamlined Filing Compliance Procedures or IRS Criminal Investigation’s (IRS CI) Voluntary Disclosure Program. These are very different programs that are options for taxpayers in different circumstances. If necessary, an experienced Texas FBAR attorney can help you decide which option to pursue and then deal with the IRS on your behalf.

Request a Call with Texas FBAR Attorney Lawrence Brown

If you need to know more about FBAR compliance in 2025 or if you need to learn more about the options for dealing with past-due FBAR or Form 8938 filings, we invite you to get in touch. To request a call with Texas FBAR attorney Lawrence Brown, please call 888-870-0025 or tell us how we can reach you online today.

Offshore Accounts/International Tax Disputes