If you’ve missed FBAR filings but all your foreign account income was properly reported on your tax returns, you may qualify for the IRS delinquent FBAR submission procedures. This program typically results in no penalties when eligibility requirements are met. Here’s everything you need to know about using this program.
Delinquent FBAR Submission Procedures: Key Points
- For taxpayers who missed FBARs but have no unreported income from accounts
- Usually results in no penalties when eligibility requirements are met
- Must not be under IRS examination or previously contacted about FBARs
- File late FBARs electronically with statement explaining reason
- Different from Streamlined Procedures (which handle unreported income)
Table of Contents
What Are Delinquent FBAR Submission Procedures?
The IRS created this program for taxpayers who simply didn’t know about FBAR requirements. It’s not a formal application process. Instead, you file the late FBARs with an explanation of why they’re late.
Key features:
- No formal application required
- File late FBARs with statement of explanation
- Designed for non-willful, no unreported income situations
- IRS accepts most filings without follow-up
This is the simplest path to FBAR compliance for many taxpayers. For complete FBAR requirements, see our FBAR Filing Guide.
Eligibility Requirements
You may use delinquent FBAR submission procedures if ALL of these apply:
You qualify if:
- Not under IRS civil examination or criminal investigation
- Not previously contacted by IRS about delinquent FBARs
- No unreported income from the foreign financial accounts
- All account income was properly reported and taxes paid
- Failure to file was not willful
You don’t qualify if:
- You have unreported income from foreign accounts (use Streamlined instead)
- You’re under IRS examination for any tax year
- IRS has already contacted you about missing FBARs
- Your failure to file was willful
For more on willful vs non-willful, see our FBAR Penalties & Relief Guide.
What “No Unreported Income” Means
This is the critical qualification. The requirement means:
- All interest from foreign accounts was reported on Schedule B
- All dividends were reported on Schedule B
- All capital gains were reported on Schedule D
- Tax was paid on this income
- There are no “hidden” deposits or income streams
Even small amounts of unreported income disqualify you. If you earned $50 in interest but didn’t report it, you’ll need the Streamlined Procedures instead.
Common income sources from foreign accounts:
- Interest (even on checking accounts in some countries)
- Dividends
- Capital gains from sales
- Foreign pension contributions (in some cases)
If you have unreported income, don’t use this procedure. You’ll need to use Streamlined Filing Compliance instead. See our FBAR Penalties & Relief Guide for details.
Step-by-Step Filing Process
Step 1: Gather Account Statements
Collect statements for all delinquent years. You’ll need:
- Maximum account values for each account, each year
- Account numbers
- Financial institution names and addresses
- Statements for every month (or year-end at minimum)
If you can’t get monthly statements, use the highest balance from available statements. Document what you used and why.
Step 2: Calculate Maximum Values
For each account, identify the highest balance during the calendar year. Then convert to USD using Treasury year-end exchange rates.
See our FBAR Exchange Rates Guide for official Treasury rates and conversion instructions.
Step 3: Prepare FinCEN 114 for Each Delinquent Year
You’ll file one FBAR per calendar year. Each FBAR includes:
- All reportable accounts for that year
- Maximum value of each account in USD
- Account type and financial institution information
- Your identifying information
Step 4: Write Statement of Explanation
Prepare a statement that includes:
- Your name and SSN/ITIN
- Tax years being filed
- Reason for late filing
- Confirmation that all income was properly reported
- Confirmation that failure was not willful
Keep it concise. One page is typical.
Step 5: File Electronically
File through the BSA E-Filing System:
- Go to bsaefiling.fincen.gov
- Select FinCEN 114 (FBAR)
- When asked why filing late, select “Delinquent FBAR”
- Complete the form for each year
- Attach your statement or include it in the comments field
- Submit and save your confirmation
Paper filing is not accepted. You must file electronically.
Statement of Explanation: What to Include
Your statement should be straightforward. Here’s what to address:
Required elements:
- Your name and taxpayer ID
- The years for which you’re filing
- Why you didn’t file on time
- Confirmation that all foreign account income was reported on tax returns
- Statement that your failure was not willful
Common legitimate reasons:
- Unaware of FBAR requirement
- Relied on tax preparer who didn’t mention FBAR
- Inherited accounts and didn’t know reporting was required
- New U.S. resident unfamiliar with U.S. filing requirements
- Thought retirement accounts were exempt
- Misunderstood the $10,000 threshold (thought it was per account, not aggregate)
Keep the statement factual. Don’t over-explain or make excuses. State what happened, confirm compliance going forward.
Expected Outcome
In most cases: No penalties assessed.
The IRS generally accepts delinquent FBAR filings without follow-up when eligibility requirements are met. You’ll receive electronic confirmation of your filing, and that’s usually the end of it.
Rare follow-up scenarios:
- IRS may request additional documentation
- Questions about specific account valuations
- Clarification on statement of explanation
Retain copies of everything you filed, including the BSA confirmation, for at least 6 years.
Going forward, file current year FBARs on time. See FBAR Deadline for this year’s dates.
When This Program Won’t Work
| Situation | Why Ineligible | Alternative |
|---|---|---|
| Unreported income from accounts | Core requirement not met | Streamlined Procedures |
| Under IRS examination | Already in system | Voluntary Disclosure or work with examiner |
| Previous IRS contact about FBARs | Already flagged | Voluntary Disclosure |
| Willful non-filing | Doesn’t meet non-willful requirement | Voluntary Disclosure |
If you don’t qualify for delinquent procedures, you still have options. Just different ones.
Streamlined Procedures Alternative
If you have unreported income from foreign accounts but your failure was non-willful, the Streamlined Filing Compliance Procedures may work.
Two versions:
| Program | Penalty | Who Qualifies |
|---|---|---|
| Streamlined Foreign Offshore | 0% | U.S. taxpayers living abroad |
| Streamlined Domestic Offshore | 5% of highest balance | U.S. taxpayers living in the U.S. |
Requirements:
- Non-willful conduct (must certify under penalty of perjury)
- 3 years of amended tax returns
- 6 years of FBARs
- Certification statement explaining non-willfulness
The 5% penalty applies to the highest aggregate balance across all accounts during the 6-year period. For many taxpayers, this is still far less than standard FBAR penalties.
For complete details, see our FBAR Penalties & Relief Guide.
Voluntary Disclosure Alternative
For willful violations or complex situations, IRS Voluntary Disclosure may be necessary.
When to consider voluntary disclosure:
- Conduct was willful
- Large amounts are involved
- Complex structures or entities
- Concerned about criminal exposure
- Ineligible for other programs
What it involves:
- No set penalty (negotiated case-by-case)
- Generally protects against criminal prosecution
- Requires full disclosure of all foreign accounts
- More expensive than other options
Voluntary disclosure typically requires a tax attorney due to potential criminal implications.
How Many Years to File
| Situation | Years to File |
|---|---|
| Delinquent procedures | All missed years within 6-year statute of limitations |
| Streamlined domestic | 6 most recent years |
| Streamlined foreign | 6 most recent years |
For delinquent procedures, file all years within the 6-year statute of limitations. If you’ve missed more than 6 years, consider filing all missed years to demonstrate good faith.
See our guide on who needs to file FBAR for threshold requirements.
After Filing: What to Expect
Immediately:
- Electronic confirmation of each FBAR filed
- No immediate penalty notices
In the following weeks/months:
- Usually nothing. Most filings are accepted without follow-up.
- Occasionally, IRS may request clarification
- Keep records in case of future questions
Going forward:
- File current year FBARs by the deadline
- April 15 (automatic extension to October 15)
- Don’t miss again. Repeat violations are treated more seriously.
Consider professional help for ongoing compliance. We handle FBAR filings regularly and can ensure you don’t miss future deadlines.
Frequently Asked Questions
What are delinquent FBAR submission procedures?
Delinquent FBAR submission procedures are an IRS program that allows taxpayers who missed FBAR filings but properly reported all foreign account income to file late FBARs with a statement explaining the delay. When eligibility requirements are met, this typically results in no penalties.
Who is eligible for delinquent FBAR procedures?
You’re eligible if: you’re not under IRS examination, you haven’t been contacted by IRS about missing FBARs, all income from foreign accounts was reported on your tax returns, and your failure to file was not willful.
How do I file a delinquent FBAR?
File electronically through the BSA E-Filing System at bsaefiling.fincen.gov. Select “Delinquent FBAR” as the reason for late filing and include a statement explaining why you’re filing late.
What if I have unreported income from foreign accounts?
If you have unreported income, you don’t qualify for delinquent FBAR procedures. Use the Streamlined Filing Compliance Procedures instead, which require filing amended tax returns along with the late FBARs.
Will I be penalized for filing delinquent FBARs?
When all eligibility requirements are met, delinquent FBAR submission procedures typically result in no penalties. The IRS designed this program specifically for non-willful taxpayers who properly reported their income.
How many years of FBARs should I file?
File all missed years within the 6-year statute of limitations. If you want to demonstrate complete good faith, consider filing all missed years even if some are older than 6 years.
What is the difference between delinquent and streamlined procedures?
Delinquent procedures are for taxpayers who missed FBARs but reported all income. Streamlined procedures are for taxpayers who have unreported income and need to file both amended tax returns and late FBARs. Streamlined domestic carries a 5% penalty; streamlined foreign is 0%.
Related FBAR Resources
- Complete FBAR Filing Guide
- FBAR Deadline
- FBAR Penalties & Relief Options
- FBAR vs Form 8938 Comparison
- FBAR Exchange Rates Guide
- Who Needs to File FBAR
- All International Tax Services
Need Help Determining If You Qualify?
We can analyze your situation and determine whether delinquent FBAR procedures work for you. If you need a different approach, we’ll explain your options. Get an upfront estimate before we start.
View FBAR Filing Services | Schedule a Consultation
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