The FBAR is an Information Report which must be filed if you have a financial interest in one or more of Foreign Financial Accounts and the aggregate value of all of the accounts is more than $10,000 at any point during the Tax Year.

Every U.S. Person lives in  USA or abroad, which includes U.S.Citizens, Green Card Holders, Resident Aliens, having Financial Interest in or Signature Authority over a Foreign Financial Account, including a Bank Account, Brokerage Account, Mutual Fund, Trust, or other type of Foreign Financial Account, exceeding certain thresholds, must file the FBAR.

The penalties for failure to file an FBAR are worse than tax penalties. Failing to file an FBAR can carry a civil penalty of $10,000 for each non-willful violation. But if your violation is found to be willful, the penalty is the greater of $100,000 or 50 percent of the amount in the account for each violation—and each year you didn’t file is a separate violation.

The FBAR (FinCEN Form 114) must be filed electronically with the US Treasury Department (not the IRS) by April 15th. There is an automatic extension of 2 months for US citizens living abroad.