Bethesda FBAR Lawyer | Failing to File an FBAR Report

Bill VanderMass

Pontius Law are experts in IRS tax issues especially FIRPTA matters. They were able to resolve a long standing difficult IRS mistake in a relatively short time. I highly recommend John and his team.

Mac V

Everything you'd want from a law firm, and there's a reason their reviews are near-perfect. Sarah was patient, thorough, quick, and most importantly, effective. She took what looked like an impossible situation and got the best possible outcome. I highly recommend them to anyone who requires help with their tax situation.

Dan Rodriguez

They were friendly and helpful, quick and specific. Fair. What you want when you have questions and need professional guidance.

Chris Stoll

We contacted Pontius regarding a legal matter. The staff listened carefully to our questions and concerns, then followed up with a phone call to further discuss our situation. This discussion was very useful and helped give us direction to start resolving our issue and concerns. All the staff were very courteous and kind.

Cris C

Very helpful and professional!

Yuanting Luo

John is very knowledgable on the tax law. It's a great help after talking with John regarding my tax situation.

Claire Hambrick

John and his team were very professional and responded to my questions and provided guidance quickly.

Prince Mampouya

I had an exceptional experience working with John Pontius and his team. Within minutes of submitting a consultation request through their website, I received a feedback from Gigi (Executive Assistant) at his office for a seamless preliminary intake. The following day, I spoke directly with John, who was not only incredibly friendly but also remarkably knowledgeable. He broke down a complex situation into clear, actionable options and thoroughly answered every single question I had. If you need expert guidance and prompt, high-touch service, I highly recommend John Pontius.

Alex Kaufman

Incredibly helpful and easy to get a free consult. Recommend

South Carolina Ave

We had a very positive experience working with Pontius Tax Law. John and his team were very knowledgeable, responsive, courteous and professional. I would definitely recommend them.

An important part of the tax collection process involves individuals properly reporting their financial assets and worldwide income. The U.S. government also requires the reporting of foreign financial assets through a process known as a Report of Foreign Bank and Financial Accounts.

More commonly referred to as FBAR, these reporting requirements mean that you must include additional documentation with your tax return. Form 114 is sent to the Department of the Treasury electronically through the FinCen network. Failure to comply could result in financial penalties. Thankfully, resolving any FBAR issues could be possible with the help of an experienced tax controversies lawyer. Let a Bethesda FBAR lawyer advise you on the best way to proceed.

When FBAR Compliance is Necessary

Not everyone is required to file an FBAR. This can make the process confusing, given that many individuals are unaware that they are required to comply. A Bethesda attorney could advise whether a taxpayer’s failure to timely file an FBAR was willful or non-willful.

FBAR compliance applies to more than just U.S. citizens. The law specifically applies to any “United States person” that owns certain accounts overseas. In addition to citizens, a “United States person” also covers lawful foreign residents residing in the country. Domestic businesses, trusts, and estates might also be required to comply with FBAR.

These requirements are broad, but they do not apply to every account held by an institution outside of the United States. There is a minimum requirement that determines when filing is necessary. Specifically, financial assets and accounts must only be reported if the aggregate value is than $10,000 on any day in the year. This does not include the value of any real property held overseas – only financial accounts.

There are also other exceptions to FBAR compliance. For example, funds that are held in U.S. military banking facilities do not qualify, even when those facilities are overseas. However, overseas retirement accounts and IRAs are not exempt. It is important to speak to an attorney before assuming any financial accounts are exempt from FBAR compliance.

The Deadline for FBAR Compliance

FBAR compliance must occur every year that a “United States person” owns financial accounts that meet the $10,000 minimum value. The deadline each year is April 15, which applies to the accounts owned the year prior. While there is an automatic extension until October 15, there is no leeway after that.

Delinquent FBAR Filing Process

There are times when a taxpayer’s only option is to make an FBAR submission after the deadline. This delinquent filing could bring an individual into compliance without a penalty but it must be done carefully. A Bethesda FBAR attorney could determine if a taxpayer would benefit from a late filing.

As of July 1, 2026, the IRS has removed its Delinquent FBAR Submission Procedures webpage from its website. This suggests that the administrative option for coming into FBAR filing compliance without penalties is no longer available.

The removal of these procedures does not mean that penalties will automatically be imposed for late filed FBARs. Rather, it means that taxpayers who file delinquent FBARs may now have potential penalty exposure, depending on the facts and circumstances of their case.

If you need to come into FBAR compliance, contact us to evaluate your options. We can help assess your circumstances and determine whether you may have reasonable cause to request penalty abatement if penalties are proposed or assessed.

Call a Bethesda FBAR Attorney to Ensure Compliance

Some individuals might think that all they need to do is file Form 8938 to the IRS to report their financial assets held outside of the country. The FBAR, which goes to the Treasury Department, is just as important. It is not difficult to maintain FBAR compliance, but you may require legal counsel to determine if you need to file.

Reach out to a Bethesda FBAR lawyer to learn if you have an obligation to report or disclose your foreign financial accounts.