What is the FBAR threshold?

$10,000 aggregate across ALL foreign accounts at any point during the year. If your 5 Indian accounts collectively exceeded $10,000 at any time, you must file — even if no single account exceeded $10,000.

Is FBAR the same as FATCA?

No. FBAR (FinCEN 114) is filed with the Treasury Department via BSA E-Filing. FATCA (Form 8938) is filed with the IRS as part of your tax return. Different thresholds, different agencies, different penalties. Many H-1B holders must file both.

What is the FBAR penalty for non-willful failure to file?

Up to $10,000 per violation (per account, per year). Willful violations: the greater of $100,000 or 50% of the account balance. Criminal penalties: up to $500,000 fine and 10 years imprisonment.

FBAR Guide for H-1B Visa Holders

Understanding the Report of Foreign Bank and Financial Accounts (FBAR) and your filing obligations.

FBAR penalties are among the harshest in tax law:

Non-willful violation: Up to $10,000 per report (per year). Following Bittner v. United States, 598 U.S. 85 (2023), the Supreme Court held that non-willful penalties are assessed per FBAR filing, not per account. The penalty applies even if you were unaware of the filing requirement.
Willful violation: The greater of $100,000 or 50% of the account balance at the time of the violation, per account, per year.
Criminal penalties: Willful failure to file can result in criminal prosecution with fines up to $500,000 and imprisonment up to 10 years.

What Is FBAR?

FBAR stands for the Report of Foreign Bank and Financial Accounts, officially known as FinCEN Form 114. It is a reporting requirement administered by the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Unlike your tax return, FBAR is not filed with the IRS.

If you are a U.S. person (including an H-1B visa holder who is a tax resident) and you have a financial interest in or signature authority over one or more foreign financial accounts, you must file an FBAR if the aggregate value of all your foreign accounts exceeds $10,000 at any time during the calendar year.

The $10,000 Threshold

Key rule:

The $10,000 threshold is based on the aggregate value of all your foreign accounts combined, not per-account. If you have 5 Indian accounts each worth $3,000 (total: $15,000), you must file an FBAR even though no single account exceeds $10,000.

The value is determined by the highest balance in each account during the year, converted to U.S. dollars using the Treasury Department's end-of-year exchange rate. You sum the highest balances across all accounts — if the total exceeds $10,000 at any point during the year, you must file.

How to File FBAR

FBAR is filed electronically through the BSA E-Filing System, which is separate from the IRS e-filing system:

Go to the BSA E-Filing System at bsaefiling.fincen.treas.gov
Select "File FBAR" (you do not need to create an account for individual filings)
Enter each foreign account's details: account number, financial institution name, maximum value during the year, account type, and country
Submit electronically and save your confirmation

Deadline: April 15, with an automatic extension to October 15. No separate extension request is needed.

Important: FBAR is entirely separate from your tax return. Our platform generates your tax return (including Form 8938 if needed), but FBAR must be filed directly with FinCEN. After you complete your return with us, we provide a post-filing reminder about FBAR if your foreign accounts indicate you may need to file one.

Common Indian Accounts That Count

For H-1B visa holders from India, the following account types are typically reportable on FBAR:

NRE / NRO Accounts

Non-Resident External and Non-Resident Ordinary savings and fixed deposit accounts at Indian banks. Both types count.

EPF (Employee Provident Fund)

Your EPF balance from previous Indian employment counts as a foreign financial account. Interest earned is taxable income.

PPF (Public Provident Fund)

PPF accounts count toward the aggregate threshold. Interest earned is taxable in the U.S. even though it is tax-free in India.

Indian Mutual Funds

Mutual fund holdings through Indian AMCs are reportable. They are also classified as PFICs, requiring additional Form 8621 reporting.

NPS (National Pension System)

NPS accounts are foreign financial accounts for FBAR purposes. Contributions and growth may also have income tax implications.

Demat / Stock Accounts

Indian brokerage accounts holding stocks in demat form count toward the FBAR threshold.

FBAR vs. FATCA

Many H-1B filers need to file both FBAR and FATCA (Form 8938). The two filings are not duplicative — they are separate legal obligations with different thresholds, different filing locations, and different penalties. Filing one does not satisfy the other.

Post-Filing Reminder

After you complete your tax return with H1B TaxFile, we provide a post-filing checklist that includes an FBAR reminder if your foreign account data suggests you may need to file one. The reminder includes the filing URL, deadline, and a summary of the accounts you reported during your tax preparation.

IRS source: FinCEN: Report of Foreign Bank and Financial Accounts

Frequently Asked Questions

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H1B TaxFile Team

Written by the H1B TaxFile editorial team — tax professionals and software engineers who specialize in U.S. federal tax filing for H-1B visa holders, F-1 students, and nonresident aliens.

Reviewed by a licensed CPA with international tax experience.

Disclaimer: This guide is for educational purposes only and does not constitute tax or legal advice. Tax laws are complex and change frequently. Consult a qualified tax professional for advice specific to your situation.