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Delinquent FBAR Submission Procedures

Disclaimer: The following IRS Delinquent FBAR is intended for general information only and not legal or tax advice.

Zaher Fallahi, IRS Defense Tax Attorney, CPA, represents taxpayers nationwide with the IRS Audit, Cryptocurrency Tax, IRS Criminal Investigation Voluntary Disclosure Program (VDP), Streamlined Filing Compliance Procedures, FBARs and Foreign Gifts. For an Attorney-Client Privileged consultation, please call Toll Free 1-(877) 687-7558.

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Zaher Fallahi, IRS Defense Tax Attorney, CPA, has completed “Negotiation and Leadership”, and “Leveraging the Power of Emotions as You Negotiate” Certificate Programs at Harvard Law School.

IRS delinquent FBAR Filing

If taxpayers do not need to enter the Update IRS Voluntary Disclosure Practice (VDP) or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report gross income and pay additional tax, but:

  1. Have not filed a required Report of Foreign Bank and Financial Accounts (FBAR);
  2. Are not under a civil examination or a criminal investigation by the IRS, and,
  3. Have not already been notified by the IRS about the delinquent FBARs should file the delinquent FBARs according to the FBAR instructions. 

Follow these steps to resolve delinquent FBARs

  1. Review the instructions;
  2. Include a statement explaining why you are filing the FBARs late;
  3. File all FBARs electronically;
  4. On the cover page of the electronic form, select a reason for filing late; and,
  5. If you are unable to file electronically, contact FinCEN’s Help line at 1-800-949-2732, or 1-703-905-3975 (if calling from outside the United States) to determine possible alternatives to electronic filing.

The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns the gross income from the foreign financial accounts reported on the delinquent FBARs, and paid all tax on, and you have not already been notified by the IRS regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.

Delinquently filed FBARs will not be automatically subject to audit but may be selected for audit through the IRS’s current audit selection standards for information returns.

Zaher Fallahi, IRS Defense Tax Attorney, CPA, represents taxpayers nationwide with the IRS Audit, Cryptocurrency Tax, IRS Criminal Investigation Voluntary Disclosure Program (VDP), Streamlined Filing Compliance Procedures, FBARs and Foreign Gifts. For an Attorney-Client Privileged consultation, please call Toll Free 1-(877) 687-7558.