The $10,000 threshold is the max balance at any moment - not year-end

FBAR & FATCA Filing for Foreign Account Holders

If you are an NRI or a US person with accounts in India or abroad, the US wants to know about them. Cross $10,000 across all foreign accounts and you owe an FBAR. Hold Indian mutual funds and you likely owe PFIC Form 8621 too. We file all of it correctly - and quietly fix past years.

See What I Need to File I Never Filed Before
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Quick answer

Do I have to file an FBAR for my bank accounts in India?

Yes, if the combined balance crossed the threshold. A US person - citizen, green-card holder, or US tax resident, including most NRIs who are US residents - must file an FBAR (FinCEN Form 114) when the total of all foreign financial accounts exceeds $10,000 at any point in the year, even for a single day, and even if no single account reaches that amount on its own. NRE, NRO, FCNR, demat, and PPF accounts all count toward the total. Many filers also owe FATCA Form 8938 with their tax return at higher thresholds, and Indian mutual funds are generally PFICs requiring Form 8621. These are reporting forms, not extra taxes, but penalties can apply when required filings are missed. An eligible taxpayer whose conduct was non-willful may qualify for an IRS catch-up procedure, but eligibility and penalty treatment depend on the complete facts. Compare the IRS Streamlined Procedures and other filing paths before submitting late forms.

Decision points

FBAR, Form 8938 and late filing are separate questions

  • FBAR: test the aggregate maximum value of foreign financial accounts against the $10,000 threshold.
  • Form 8938: apply a separate asset definition and thresholds based on filing status and residence.
  • Late filing: determine whether income was omitted, why the filing failed and whether the IRS has contacted the taxpayer.
  • Investments: review foreign funds separately for possible Form 8621 reporting.

FBAR vs FATCA: They Are Not the Same

These two filings overlap but are separate, with separate thresholds and separate penalties. Many people need to file both.

FBAR - FinCEN Form 114

Filed with FinCEN, separate from your tax return

  • →Triggered when foreign accounts total over $10,000 at any point in the year
  • →Covers bank, NRE, NRO, FCNR, fixed deposits, and demat accounts
  • →Filed electronically through the BSA E-Filing System
  • →Civil penalties can apply, and statutory maximums are adjusted annually for inflation

FATCA - Form 8938

Filed with your Form 1040 tax return

  • →Higher thresholds that vary by filing status and US vs abroad residence
  • →Covers specified foreign financial assets, including some not on FBAR
  • →Penalty of $10,000, rising to $50,000 for continued failure
  • →Often filed together with FBAR for the same accounts

$10K

FBAR threshold

Aggregate across all foreign accounts, max balance at any time.

8938

FATCA form

Filed with your return when assets exceed FATCA thresholds.

8621

PFIC form

One per Indian mutual fund, every year you hold it.

Oct 15

FBAR deadline

Due April 15 with an automatic extension to October 15.

What We File for You

  • FBAR (FinCEN Form 114) for all NRE, NRO, FCNR, savings, deposit, and demat accounts
  • FATCA Form 8938 statement of specified foreign financial assets
  • PFIC Form 8621 for Indian mutual funds, with QEF or mark-to-market election analysis
  • Form 1116 Foreign Tax Credit and Form 8833 treaty positions under the India-US DTAA
  • Coordination with your Indian CA on Form 67 and ITR so both sides reconcile

Review the Correct Filing Path Before Catching Up

The correct response depends on what was missed, whether related income was reported, where the taxpayer lived, whether the conduct was non-willful, and whether the IRS has already made contact. Penalty relief is not automatic, so the filing path should be selected before late forms are submitted. See the detailed FBAR Streamlined Filing guide.

Streamlined Filing Compliance Procedures

For eligible individual taxpayers who certify non-willful conduct. The foreign and domestic procedures have different residence tests and penalty terms. A typical submission includes the required returns and information forms for three years and FBARs for six years.

Delinquent FBAR Submission Procedures

Late FBAR filing may be appropriate when related income and tax returns were complete and the IRS has not already contacted the taxpayer. The IRS considers the explanation and complete facts, including whether reasonable cause exists.

FBAR & FATCA FAQs

What is FBAR and who must file it?
FBAR is the Report of Foreign Bank and Financial Accounts (FinCEN Form 114), required under 31 U.S.C. §5314 of the Bank Secrecy Act. Any US person must file if all foreign accounts together exceeded $10,000 at any point in the year. The trigger is the maximum balance at any moment, not the year-end balance.
Do I report NRE and NRO accounts?
Yes. NRE, NRO, FCNR, deposits, and demat accounts are all reportable. NRE interest being tax-free in India under the treaty does not exempt the account from FBAR disclosure.
How is FATCA different from FBAR?
FBAR is filed with FinCEN at a $10,000 threshold. FATCA Form 8938 is filed with your tax return at higher thresholds that vary by filing status and where you live. Many taxpayers must file both, and each carries its own penalty.
Are my Indian mutual funds a problem?
Usually yes. Indian mutual funds, including ELSS, are generally PFICs and require a separate Form 8621 per fund each year, with harsh default tax unless a QEF or mark-to-market election is made. It is one of the most commonly missed NRI filings.
I never filed. What now?
First determine what was missed, whether related income and returns were complete, where you lived, whether the conduct was non-willful, and whether the IRS has contacted you. Eligible taxpayers may consider the Streamlined Filing Compliance Procedures, late FBAR filing, or another offshore compliance option. Penalty relief is not automatic.

Let's Sort Out Your Foreign Accounts

A 30-minute call covers your accounts, what you need to file, and whether a catch-up program fits. No commitment.

[email protected] +1-206-209-8210

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By Gurleen Kaur
Founder of Illuminous Accounting. Experience at Deloitte and Grant Thornton.