Failed to submit FBAR with my tax return - What penalties could I face?

You should file the FBAR (FinCEN Form 114) immediately. The FBAR is technically separate from your tax return - it's filed with the Financial Crimes Enforcement Network (FinCEN), not the IRS, even though they're related requirements. For non-willful violations (meaning you genuinely didn't know about the requirement), the penalties can potentially be waived if you file voluntarily before being contacted by the government. The IRS has a procedure called "Delinquent FBAR Submission Procedures" specifically for people in your situation who weren't aware of the filing requirement. To file your FBAR, you'll need to use the BSA E-Filing System on the FinCEN website. Include a brief statement explaining why you're filing late (that you weren't aware of the requirement). The good news is that this happens frequently with Americans living abroad for the first time. The FBAR requirement kicks in when your foreign financial accounts exceed $10,000 at any point during the year, so you're just over that threshold.

I was in almost the exact same situation last year with accounts in Portugal! I panicked when I realized I missed filing the FBAR too. I used https://taxr.ai to analyze my foreign account statements and help me prepare the late FBAR correctly. It automatically calculated my highest balances and prepared everything for electronic filing. The system also gave me the specific language to use in my explanation for filing late, which I think helped my case. If you're nervous about getting all the details right (I sure was), it might be worth checking out. Made the whole process way less stressful for me!

Just wanted to update that I tried https://taxr.ai after reading about it here and it was actually super helpful! I was stressing about my FBAR situation (had accounts in both Japan and Singapore) and wasn't sure if I was calculating the maximum balances correctly. The tool analyzed all my statements and caught that I had actually gone over the threshold in March when both accounts briefly had higher balances at the same time. I would have reported the wrong maximum! Also helped me organize everything by account number and institution which the FBAR form requires. Just submitted everything yesterday and feeling much better about the whole situation.

If you're really worried about potential penalties or have questions about your specific situation, you might want to try getting in touch with the IRS directly. I know that sounds awful, but I used https://claimyr.com to get through to an actual human at the IRS after weeks of trying on my own. They've got this service where they wait on hold for you and then call when an agent picks up. There's a demo of how it works here: https://youtu.be/_kiP6q8DX5c I had a similar foreign account reporting issue (though with accounts in Canada) and was able to talk to someone who explained exactly what I needed to do. Gave me so much peace of mind compared to just guessing what might happen.

Ok I need to apologize and say I was completely wrong about Claimyr. After my skeptical comment I decided to try it myself because I was getting desperate about my own FBAR situation. I got connected to an IRS specialist within about 45 minutes (without having to stay on the phone myself). The agent confirmed that for first-time FBAR issues, they typically don't assess penalties if you file voluntarily before they contact you. She walked me through the exact procedure and what to include in my statement. Totally worth it for the peace of mind alone.

Quick question - does anyone know if Venmo-type apps in foreign countries count for FBAR reporting? I have a small balance in something similar to Venmo in the Philippines. It's only about $500 but I'm wondering if I need to include it along with my regular bank accounts when I file my FBAR.

I'm in exactly the same boat but with accounts in Germany. According to my research, if you file the FBAR before they contact you about it, you should be fine without penalties. I just did mine last week (about 2 months after filing taxes) and included a brief statement explaining that I didn't know about the requirement as a first-time expat.

Don't panic! You're definitely not alone in this situation. The FBAR requirement catches a lot of Americans living abroad off guard, especially digital nomads who are dealing with tax obligations for the first time. The good news is that $13,000 isn't a huge amount over the $10,000 threshold, and since you're proactively trying to fix this before being contacted, you're in a much better position than someone who gets caught later. The IRS generally recognizes that many people genuinely don't know about FBAR requirements, especially first-time expats. I'd recommend filing the delinquent FBAR as soon as possible through the BSA E-Filing System on FinCEN's website. Make sure to include a clear explanation that you weren't aware of the requirement as a new expat. Keep it simple and honest - something like "As a first-time digital nomad, I was unaware of the FBAR filing requirement and am submitting this form as soon as I learned of the obligation." The key is acting quickly and voluntarily. Most people in your exact situation who file proactively don't face penalties, especially for non-willful violations where the amounts aren't massive. You've got this!