How much is the penalty for not filing an FBAR?
+
For a non-willful violation the statutory maximum is $10,000 per year (per form after the 2023 Bittner decision), adjusted upward for inflation. For a willful violation it is the greater of $100,000 or 50% of the account balance at the time of the violation, per year — also inflation-adjusted. The calculator estimates this exposure.
What is the difference between willful and non-willful FBAR penalties?
+
Non-willful means a genuine, non-deliberate failure to file, capped at $10,000 per year. Willful means you knew of the duty and disregarded it, exposing you to the far larger 50%-of-balance penalty. Willfulness is a legal determination based on the facts, not a box you tick — and it changes the numbers dramatically.
Did the Bittner decision change FBAR penalties?
+
Yes. In Bittner v. United States (2023) the Supreme Court held that the non-willful penalty applies per FBAR form (per year), not per account. Someone with ten accounts over three years therefore faces three non-willful penalties, not thirty — a significant reduction from the IRS's earlier position.
Are FBAR penalties adjusted for inflation?
+
Yes. The $10,000 and $100,000 statutory figures are adjusted annually under the Federal Civil Penalties Inflation Adjustment Act, so the real maximums are higher than the base numbers — the non-willful cap has been around $16,000 in recent years. This calculator uses the statutory bases as a conservative starting estimate.
How is the willful FBAR penalty calculated?
+
It is the greater of the inflation-adjusted $100,000 statutory amount or 50% of the account balance at the time of the violation, and it can be assessed for each year of willful conduct. On a $1 million balance that is a $500,000 exposure per year, which is why willful cases are so serious.
Can the IRS really take 50% of my account?
+
For willful violations, yes — the statute permits a penalty of 50% of the balance per year, and courts have upheld large willful penalties. In practice the IRS applies mitigation guidelines and exercises discretion, but the exposure is real, which is why coming forward before you are contacted matters.
How do I avoid FBAR penalties if I just found out I had to file?
+
If your failure was non-willful, the IRS Streamlined Filing Compliance Procedures usually replace these penalties with 0% (if you live abroad) or 5% (if you live in the US) of your highest balance. Coming forward correctly, before the IRS contacts you, is normally far cheaper than the penalty exposure.
What is the FBAR filing threshold?
+
You must file FinCEN Form 114 if the aggregate value of your foreign financial accounts exceeded $10,000 at any point during the year — even for a single day, and even if the money is spread across several accounts. The threshold is aggregate, so small accounts add up.
Is the FBAR a tax?
+
No. The FBAR is an information report filed with FinCEN, not a tax return, and filing it does not itself create a tax liability. But the penalties for not filing are among the most severe in the US system, which is what makes the FBAR so important despite being 'just' a report.
How many years of FBARs can the IRS penalize?
+
The FBAR has a six-year civil statute of limitations, so the IRS can generally assess penalties for the past six years. The Streamlined procedures require six years of delinquent FBARs for that reason, and the years-not-filed input in this calculator is capped at six accordingly.
Does an FBAR penalty apply on top of income tax?
+
Yes. FBAR penalties are separate from any income tax, interest and accuracy penalties on unreported income from the accounts. That is why the total cost of staying non-compliant can be far higher than the FBAR figure alone, and why a coordinated disclosure is important.
Is this FBAR penalty estimate exact?
+
No — it is an exposure estimate using the statutory bases before inflation adjustment and before IRS mitigation and discretion. Willfulness is a legal determination and real outcomes vary widely. If you have unfiled FBARs, speak to a specialist before doing anything, including filing.
