Since FBARS are filed through FinCen and not the IRS, penalties can be as high as $10,000 a year for filing errors or not knowing you had to file.
Fortunately, there is an amnesty option for expats to make up this tax situation. However, you’ll need to use them before the IRS contacts you. The amnesty program is called the Delinquent FBAR Submission Procedures.
Here are three ways you, as an American expat, can catch up and file your late FBARs:
If you already filed your tax return through us at MyExpatTaxes:
You can back file your FBAR through our MyExpatTaxes online portal You can do this for any qualifying years and need to explain why you didn’t file them before (i.e., you were unaware you had to do them).
If you already filed your tax return (either through another tax company, or on your own) or if you have not filed your tax return yet:
You can back file your FBAR through our MyExpatFBAR online portal or the FinCen portal. You can do this for any qualifying years and need to explain why you didn’t file them before (i.e., you were unaware you had to do them).
If you have not filed your tax return yet:
You can also make up for lost years by using the Streamlined Procedure tax amnesty program. This program is exclusively for Americans abroad who didn’t know they had to file taxes from abroad without facing tax consequences and fees.