FBAR & FATCA Disclosure
Effective Date: January 1, 2025
Critical Notice: DualFiler Does NOT File FBARs or FATCA Reports
DualFiler is an educational platform only. We do not file, transmit, or submit FinCEN Form 114 (FBAR), Form 8938 (FATCA), or any other report to any government agency on your behalf. You are solely responsible for filing these reports through the official channels described below.
Current FBAR Penalty Amounts (2025 Inflation-Adjusted)
The following penalty amounts are adjusted annually for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act. These figures are for Tax Year 2025 (filed in 2026). Verify all amounts against FinCEN’s published guidance before relying on them.
| Violation Type | Maximum Penalty |
|---|---|
| Non-willful violation (per account per year) | $16,536 |
| Willful violation (per account per year) Or 50% of account balance, whichever is greater | $165,353 |
| Criminal penalties — willful failure to file | Up to $500,000 fine and/or 10 years imprisonment |
Note: For willful violations, the IRS may assess the greater of the statutory penalty amount ($165,353) or 50% of the highest aggregate account balance during the year of the violation. For an individual with $400,000 in Canadian accounts, the willful FBAR penalty could be $200,000 per year of non-filing.
Current FATCA (Form 8938) Penalty Amounts
| Violation Type | Penalty Amount |
|---|---|
| Initial failure to file | $10,000 |
| Continued failure (per 30-day period after IRS notice) | $10,000 per period |
| Maximum for continued failure | $60,000 |
| Criminal penalties | Up to $250,000 fine and/or 5 years imprisonment |
Additionally, failure to file Form 8938 extends the statute of limitations on the entire tax return to 6 years (versus the normal 3 years). A 40% accuracy-related penalty may apply to any underpayment attributable to undisclosed foreign financial assets.
DualFiler Does NOT File These Forms
To be absolutely clear:
- DualFiler does not electronically file FinCEN Form 114 (FBAR) through the BSA E-Filing System.
- DualFiler does not prepare or file Form 8938 (FATCA) with the IRS.
- DualFiler does not act as a third-party filer, agent, or representative for any FBAR or FATCA reporting.
- DualFiler does not have access to the BSA E-Filing System, IRS e-file, or any government filing portal.
- DualFiler does not validate, verify, or confirm whether you have met your FBAR or FATCA filing obligations.
Official Filing Sites
FBAR (FinCEN Form 114)
- Filed with: Financial Crimes Enforcement Network (FinCEN), U.S. Department of the Treasury
- Filing method: Electronic filing only through the BSA E-Filing System
- Filing site: bsaefiling.fincen.treas.gov
- Deadline: April 15 (automatic extension to October 15 — no form required)
- Not filed with: The IRS. FBAR is a FinCEN report, not an IRS form. It is not attached to your tax return.
FATCA (Form 8938)
- Filed with: Internal Revenue Service (IRS)
- Filing method: Attached to your federal income tax return (Form 1040 or 1040-NR)
- Filing site: Filed through your tax return — IRS e-file, tax preparation software, or mailed with your paper return
- Deadline: Same as your income tax return (April 15, with applicable extensions)
- Important: Form 8938 does NOT replace the FBAR. Both may be required.
FBAR vs. FATCA — Key Differences
| Feature | FBAR (FinCEN 114) | FATCA (Form 8938) |
|---|---|---|
| Filing authority | FinCEN (Treasury) | IRS |
| Threshold (single, US) | $10,000 aggregate | $50,000 EOY / $75,000 any time |
| Filing method | Separate electronic filing | Attached to tax return |
| Exchange rate | Treasury year-end rate | Treasury year-end rate |
| Account types | Bank, securities, other financial | Broader: includes stock, interests, instruments |
Streamlined Filing Compliance Procedures
If you have failed to file FBARs, FATCA forms, or other international information returns in prior years, the IRS offers the Streamlined Filing Compliance Procedures as a potential path to come into compliance with reduced penalties. There are two tracks:
Streamlined Domestic Offshore Procedures (SDOP)
- For US residents (those residing in the US)
- Requires certification that non-compliance was non-willful
- Miscellaneous offshore penalty: 5% of highest aggregate balance of foreign financial assets
- File 3 years of amended/delinquent tax returns and 6 years of FBARs
Streamlined Foreign Offshore Procedures (SFOP)
- For taxpayers residing outside the US
- Requires certification that non-compliance was non-willful
- No miscellaneous offshore penalty (0% penalty)
- File 3 years of delinquent tax returns and 6 years of FBARs
Important: The Streamlined Procedures require a certification under penalty of perjury that the failure to file was due to non-willful conduct. Filing a false certification is a criminal offense. These procedures should only be pursued with the guidance of a qualified cross-border tax professional. DualFiler does not provide guidance on whether the Streamlined Procedures are appropriate for your situation.
For official information, see: IRS Streamlined Filing Compliance Procedures
Who Must File an FBAR?
A “United States person” must file an FBAR if the aggregate value of all foreign financial accounts exceeds $10,000 at any point during the calendar year. A “United States person” includes:
- U.S. citizens (including dual citizens), regardless of where they reside
- U.S. resident aliens (including green card holders and those meeting the Substantial Presence Test)
- Certain trusts and estates with U.S. connections
For Canadians in the US: If you are a TN visa holder, H-1B worker, L-1 transferee, or green card holder who meets the Substantial Presence Test, and you have Canadian bank accounts, investment accounts, RRSP, TFSA, or any other financial accounts in Canada with an aggregate value exceeding $10,000 USD at any point during the year, you are likely required to file an FBAR.