FBAR Penalties

In Depth

Generally there are two penalties, the Willful Violation and the Non-Willful Violation.

Willful Violation - A voluntary, intentional violation of a known legal duty.
Non-Willful Violation - The establishment of this penalty will turn on negligence and the taxpayer's knowledge of the FBAR filing requirements. See our article, A Closer Look at the Non-Willful FBAR Penalty, published in California Tax Lawyer on the non-willful penalty.

Failing to file an FBAR carries a civil penalty of $10,000 for each non-willful violation. If the violation is willful, the penalty is the greater of $100,000 or 50 percent of the account balance for each year that is unfiled. Filing a false tax return is a felony that can carry a sentence of up to 5 years in prison and a fine of up to $25,000. Failure to file a FBAR is also a criminal offense and the criminal penalties for FBAR violations are fines of up to $500,000 and up to 10 years in prison.

Therefore, it is our belief that if you face an FBAR issue, you should consult with a tax attorney immediately.

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