Delinquent FBAR Filing: Can I File for Previous Years?

Yes, you can file FBARs for previous years. The IRS allows late submissions through the Delinquent FBAR Submission Procedures if your failure to file wasn’t willful. Acting promptly and voluntarily often helps reduce or avoid penalties.

Discovering you’ve missed filing required Foreign Bank Account Reports (AKA FBARs and FinCEN Form 114) can be alarming for any U.S. person with overseas financial accounts. If you’re wondering “Can I file FBAR for previous years,” the good news is that the IRS provides multiple pathways for taxpayers to correct past filing oversights while often reducing or eliminating penalties. Whether you recently learned about the requirement, inherited foreign accounts, or simply overlooked this obligation during busy tax seasons, the realization that you’re not in compliance with federal reporting requirements can trigger serious anxiety.

Addressing past noncompliance promptly is often important as it can substantially reduce potential penalties and demonstrate good faith to tax authorities.

Related Read: Delinquent or Late FBAR Filings: 2025 Penalties and How to Respond

Understanding FBAR Requirements

The Report of Foreign Bank and Financial Accounts (FBAR), officially known as FinCEN Form 114, is a required annual information report for U.S. persons who have financial interests in or signature authority over foreign financial accounts totaling $10,000 or more at any time during a calendar year. This reporting requirement exists under the Bank Secrecy Act as part of the U.S. government’s efforts to combat tax evasion, money laundering, and other financial crimes.

U.S. persons in this context include U.S. citizens, resident aliens, trusts, estates, and domestic entities. The $10,000 threshold applies to the aggregate maximum value of all foreign accounts, not each account individually. This means if you have multiple accounts abroad that in the aggregate exceed $10,000 at any point during the year, you must file an FBAR even if no single account exceeds that amount.

Reportable accounts include bank accounts, securities accounts, mutual funds, whole life insurance policies with cash value, and certain retirement accounts. The standard FBAR filing deadline is April 15, with an automatic extension to October 15 each year. Unlike tax returns, FBARs are not filed with the IRS but must be submitted electronically through the Financial Crimes Enforcement Network’s BSA E-Filing System.

Why People Miss Their FBAR Filing Obligations

Missing FBAR filing deadlines happens for numerous legitimate reasons. The most common is simple lack of awareness—many taxpayers, especially those who recently became U.S. residents or inherited overseas assets, simply don’t know about this requirement. The FBAR obligation exists independently of whether you owe taxes on the foreign accounts, which often creates confusion.

• Misunderstanding which accounts meet the reporting threshold
• Confusion between FBAR requirements and other international tax forms like Form 8938 (FATCA)
• Assuming financial institutions or tax preparers handle this filing automatically
• Temporary overseas assignments that unexpectedly trigger FBAR requirements
• Becoming a signatory on family or business accounts abroad without realizing the reporting implications
• Health issues or personal crises that disrupt normal tax compliance activities

Even knowledgeable taxpayers and businesses can inadvertently miss FBAR filings due to the complexity of international tax regulations and the somewhat unique nature of this particular filing requirement. International taxation often involves overlapping requirements that can confuse even financially savvy individuals.

Consequences of Not Filing Required FBARs

The penalties for failing to file required FBARs can be severe, which is why addressing delinquent filings promptly is crucial. For non-willful violations—the definition of which has been the subject of significant litigation—penalties can reach up to $10,000 per violation, subject to inflation. In a situation with multiple years of non-compliance, these penalties can accumulate rapidly.

For willful violations, where evidence suggests you willfully avoided filing, the stakes are much higher. Penalties can reach the greater of $100,000 or 50% of the account balance at the time of the violation. In extreme cases involving deliberate concealment or fraud, criminal penalties including fines up to $250,000 and imprisonment for up to five years may apply.

The IRS typically has six years from the FBAR due date to assess civil penalties for violations. During this period, the agency may discover unfiled FBARs through various means, including:

• Information sharing with foreign tax authorities
• Foreign bank reporting under FATCA requirements
• Whistleblower tips
• Discrepancies between reported income and financial activity
• Routine audits of tax returns that reveal foreign accounts

Options for Filing Past-Due FBARs

The IRS offers several programs for taxpayers to address delinquent FBARs, each designed for different circumstances:

1. Delinquent FBAR Submission Procedures: For taxpayers who either weren’t required to file tax returns,or have filed all required returns properly reporting all income from foreign financial accounts, and haven’t been contacted by the IRS about the delinquent FBARs.
2. Streamlined Filing Compliance Procedures: Available in two formats (Domestic and Foreign Offshore) for taxpayers whose failure to report foreign financial assets resulted from non-willful conduct.
3. Voluntary Disclosure Practice: For taxpayers concerned about potential criminal liability or substantial civil penalties due to willful conduct.

The right option depends on your specific circumstances, particularly whether your non-filing was willful, whether you’ve reported and paid tax on all income from the foreign accounts, and whether you reside in the U.S. or abroad. Selecting the appropriate procedure is important as it directly impacts potential penalties and compliance requirements.

The Delinquent FBAR Submission Procedures

The Delinquent FBAR Submission Procedures represent the simplest path to compliance for many non-willful taxpayers. You may qualify if:

• You were not required to file tax returns for the years in question, or
• You have filed all required tax returns and properly reported all income from the foreign financial accounts, and
• You have not been contacted by the IRS about the delinquent FBARs

Under these procedures, you may:

1. Electronically file the delinquent FBARs through the BSA E-Filing System, including all required information about your foreign accounts.
2. Select a reason for filing late on the form.
3. Include a statement explaining why you’re filing late (your reasonable cause statement).

When filed under these conditions, the IRS will not impose FBAR penalties if you properly reported and paid tax on all income from the foreign financial accounts and meet the other criteria. This approach is particularly beneficial because it doesn’t require upfront payment of a significant penalty, amended tax returns, or a formal certification of non-willfulness that the streamlined procedures require.

The Streamlined Filing Compliance Procedures

If you failed to report income from your foreign accounts or have other tax noncompliance issues, the Streamlined Filing Compliance Procedures may be appropriate. In complex cases, consider consulting with an international tax attorney for tailored guidance. These procedures come in two varieties:

Streamlined Domestic Offshore Procedures (SDOP)

Streamlined Domestic Offshore Procedures apply to U.S. taxpayers who are ineligible for the Streamlined Foreign Offshore Procedures (see more below) and require:

• Filing amended tax returns for the most recent three years for which the tax return due date has passed
• Filing delinquent FBARs for the most recent six years
• Paying a 5% miscellaneous offshore penalty based on the highest year-end aggregate value of certain offshore assets
• Providing a signed certification that the failure to file was non-willful

Streamlined Foreign Offshore Procedures (SFOP)

Streamlined Foreign Offshore Procedures apply to certain taxpayers who meet specific criteria and offer more favorable terms:

• Similar filing requirements for tax returns and FBARs, thought this procedure allows for the filing of delinquent income tax returns, whereas the SDOP does not
• No miscellaneous offshore penalty
• Certification of non-willfulness

Both streamlined procedures require that your failure to file was due to non-willful conduct—meaning behavior that was due to negligence, inadvertence, mistake, or a good-faith misunderstanding of legal requirements.

How to Prepare and File Past-Due FBARs

Regardless of which procedure you use, preparing past-due FBARs involves several key steps:

1. Gather account information: Collect statements showing maximum account balances, account numbers, financial institution names and addresses, and account type for each foreign account.
2. Determine how far back to file: Generally, you should file for the past six years for which FBARs were due, as this aligns with the statute of limitations for FBAR violations.
3. Prepare electronic filings: Use the BSA E-Filing System to prepare and submit your delinquent FBARs. Each year requires a separate FBAR filing.
4. Include required information: For each account, you’ll need to provide the maximum value during the year (converted to USD), the type of account, the financial institution’s information, and account number.
5. Explain your delinquency: Depending on the ultimate compliance procedure which is used, state that you’re filing under the Delinquent FBAR Submission Procedures or the other appropriate procedure.

Accuracy and attention to detail are key when preparing these submissions. The information you provide must be consistent with your tax returns and any other international information returns you’ve filed.

Common mistakes to avoid include:

• Incorrect currency conversion
• Missing account information
• Failure to file separate FBARs for each year
• Not keeping copies of what you’ve filed
• Inconsistent treatment of accounts across different years
• Erroneous belief that a foreign financial asset may not be a foreign account

These errors can create future complications and potential compliance issues. Taking time to verify all information before submission can prevent future headaches and potential compliance problems.

Building a Reasonable Cause Defense

If the IRS has already proposed a penalty, or if you are considering coming into compliance, a strong reasonable cause statement effectively explains why you failed to file on time in the context of existing law. Effective reasonable cause explanations often include:

• Lack of knowledge about the requirement despite reasonable efforts to comply with tax laws
• Reliance on incorrect professional advice
• Health issues that prevented timely filing
• Natural disasters or other catastrophic events
• Significant family emergencies

When crafting your statement, be truthful but concise. Focus on the factors that prevented compliance rather than excuses. Document supporting evidence such as medical records, evidence of professional advice, or documentation showing when you first learned of the requirement.

The IRS evaluates reasonable cause by considering whether you exercised ordinary business care and prudence but were nevertheless unable to file on time. They’ll look at your compliance history, the complexity of your situation, and whether you corrected the failure promptly after discovering it.

When to Seek Professional Assistance

While some situations may be straightforward enough to handle on your own, many delinquent FBAR scenarios warrant professional guidance. Consider seeking help if:

• You have substantial foreign assets
• You’re unsure which program is appropriate for your situation
• Your non-filing spans many years
• You have income from foreign accounts that wasn’t reported on tax returns
• You’re concerned your conduct might be considered willful
• You’ve received communication from the IRS regarding foreign accounts

For example, if your situation is complex, you might consider consulting an international tax lawyer to help navigate the intricacies of your case. While professional assistance involves costs, it often delivers substantial return on investment through penalty avoidance, stress reduction, and assurance that compliance is handled correctly the first time.

What to Expect After Filing Delinquent FBARs

After submitting delinquent FBARs, you’ll receive an acknowledgment from the BSA E-Filing System. Under the Delinquent FBAR Submission Procedures, if you qualify, you typically won’t hear anything further from the IRS unless there are issues with your submission or other compliance concerns.

The statute of limitations for FBAR violations generally runs six years from the original due date of the FBAR.

To maintain compliance going forward:

• Set calendar reminders for future FBAR deadlines
• Keep detailed records of all foreign financial accounts
• Consider whether you have other international reporting requirements
• Stay informed about changes to international tax reporting rules

By addressing past noncompliance and establishing systems for future compliance, you can resolve this tax issue and move forward with greater peace of mind regarding your international financial activities.

Facing a Tax Problem? We’re Here to Help.

At Hughes Noff Tax Law, we know how overwhelming it can feel when the IRS or state tax authorities get involved. Whether you’re dealing with an IRS audit or tax dispute, international tax non-compliance, or tax debt resolution, we’re here to give you relief and bring down that anxiety. Let us deal with the federal government—so you don’t have to.

We approach every client with empathy and provide the advocacy, direction, service, and resolution they deserve. We have over 25 years of experience resolving complex tax controversies and understand the unique and sensitive nature of these matters. As both attorneys and CPAs, we understand the law and the numbers. Our clients appreciate the clarity and peace of mind we help restore—read their stories here.

Contact us today or call 410-694-7758 to schedule your consultation.