The FBAR penalty applies per unfiled form, not per account, with a dramatically higher ceiling for willful violations than non-willful ones.
How it works
A non-willful violation is capped at a flat dollar maximum per year, or the account balance if smaller. A willful violation instead uses whichever is greater: a much higher flat floor, or 50% of the account balance.
What this does not include
This computes the civil penalty structure only — willful FBAR violations can also carry criminal penalties (fines and potential imprisonment) separate from and in addition to the civil penalty this calculator computes.
How to use this calculator
- Enter the highest account balance, whether the violation was willful, and years violated.
Frequently asked questions
What determines whether a violation is “willful”?
Generally intentional disregard of the filing requirement, though courts have also found reckless disregard sufficient to trigger willful-level penalties in some circuits.
Is FBAR penalty assessed per account or per form?
Per form (per year), following the Supreme Court’s Bittner v. United States decision — not per individual foreign account, which had previously been a point of dispute.
Are there programs to reduce FBAR penalties for voluntary disclosure?
Yes — the IRS offers streamlined filing compliance procedures and other voluntary disclosure programs that can significantly reduce or eliminate penalties for taxpayers who come forward before being contacted by the IRS.
