What is the penalty for not reporting foreign bank accounts (FBAR)?

The penalties for failing to report foreign bank accounts on FinCEN Form 114 (FBAR) are among the harshest in tax law. Non-willful violations carry a penalty of up to $10,000 per account per year. Willful violations carry a penalty of up to $100,000 or 50% of the account balance at time of violation (whichever is greater) per account per year. Criminal penalties for willful violations can include up to 5 years in prison and fines up to $250,000. FBAR filing is required if you have a financial interest in or signature authority over foreign accounts with an aggregate value exceeding $10,000 at any point during the year. This includes bank accounts, investment accounts, and certain foreign pension accounts. If you haven't been filing FBARs, the IRS Streamlined Filing Compliance Procedures may allow you to come into compliance with reduced penalties. The Streamlined Domestic program has a 5% penalty on the highest aggregate balance. The Streamlined Foreign program has zero penalties if you qualify. Coming forward voluntarily before the IRS contacts you is always preferable to waiting.