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You may also receive Notice 1330 (Information on Making FBAR Penalty Payment by Check). Note that the IRS sends several different letters and notices. These may not be the exact letters that you receive. As of 2022, the maximum penalty for non-willful violation is $14,489.

Filing Delinquent FBARs Filing an FBAR late or not at all is a violation and may subject you to penalties. If the IRS hasn't contacted you about a late FBAR and you're not under civil or criminal investigation by the IRS, you should file late FBARs as soon as possible to keep potential penalties to a minimum.

Follow these steps to resolve delinquent FBARS FBARs will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.

The penalties for failing to file an FBAR can be severe. For willful violations, the penalty can be as high as the greater of $100,000 or 50% of the account balance. Non-willful violations carry a penalty of up to $10,000 per violation. In some cases, criminal charges can also be filed.

For willful violations, you can be fined $100,000 or 50% of your highest account value—whichever is higher. The IRS can assert these penalties for each year you didn't file. For example, if you willfully didn't file FBARs for 5 years, you could be fined $500,000 or more!

Taxpayers who hold foreign accounts finally received clarity as the Supreme Court ruled that the $10,000 non-willful penalty for failure to file a FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) applies on a per form, not per account, basis.