Foreign Account Reporting: A Complete Guide to the Report of Foreign Bank and Financial Accounts (FBAR)
For many U.S. citizens and residents living abroad, understanding foreign account reporting is a critical part of staying compliant with U.S. tax law. One of the most important requirements in this area is the Report of Foreign Bank and Financial Accounts (FBAR) — a filing that many American expats must submit if they hold financial accounts outside the United States. In this article, we’ll break down what the FBAR is, who must file it, and why foreign account reporting matters. What Is the FBAR? The Report of Foreign Bank and Financial Accounts, commonly known as FBAR , is a form used to disclose certain foreign financial accounts to the U.S. Treasury. Officially filed on FinCEN Form 114 , the FBAR is required under the Bank Secrecy Act for U.S. persons with an interest in foreign financial accounts. Foreign financial accounts can include: Bank accounts (savings, checking, CDs) Brokerage accounts Mutual funds and investment accounts Certain pension or retirement acco...