Help Needed: Filing Late Form 8938 and FBAR for Foreign Accounts

This is actually a fairly common situation for resident aliens, so try not to panic too much. The IRS has procedures in place for exactly these circumstances. For your first question, you need to report the maximum value of your accounts during the year on both Form 8938 and FBAR, not just the year-end balance. So yes, you'll need to report the $750k maximum balance. However, this itself isn't a problem - the issue would be failing to report it, which you're now taking steps to correct. For filing previous years, your approach is correct. The FBAR lookback period is 6 years, and amended returns generally go back 3 years. The statute of limitations for assessment is typically 3 years, though it can be extended in certain circumstances. Regarding the interest income, you don't need to create your own 1099-INT forms. Foreign financial institutions don't issue these forms. Instead, you should report the interest income directly on Schedule B of your Form 1040 when you file your amended returns. Just include the interest amounts and identify the foreign bank. Consider looking into the Streamlined Filing Compliance Procedures, which are designed for taxpayers who non-willfully failed to report foreign assets. This program can help you come into compliance while potentially reducing penalties.

After reading your post, I was in a similar situation last year. I tried figuring it out myself but got so confused with all the technical requirements and potential penalties. I ended up using https://taxr.ai which specializes in document analysis for international tax issues. They managed to sort through my foreign account statements and identified exactly which accounts needed reporting on both FBAR and 8938. The tool actually flagged a few accounts I wouldn't have thought needed reporting because of how the "financial interest" rules work with joint accounts. It also helped me track maximum balances across different accounts for multiple years, which was a nightmare to figure out manually with currency conversions and everything.

Just wanted to update about my experience with https://taxr.ai that was mentioned above. I was skeptical at first but decided to try it since I was completely lost with my foreign accounts situation. The service analyzed 5 years of my foreign bank statements in about 20 minutes and identified several accounts I hadn't realized needed FBAR reporting. What really helped was the detailed breakdown of maximum balances per account per year, with all the currency conversion already calculated. It even flagged a potential PFIC issue with what I thought was just a regular foreign savings account. The report was detailed enough that I could hand it directly to my tax preparer who used it to complete my streamlined filing. For anyone overwhelmed by foreign account reporting requirements, this definitely made the process much less stressful. My amended returns and FBARs have been accepted without any issues so far.

I was in almost the exact same situation two years ago. Spent weeks trying to get through to the IRS to ask questions about the streamlined program but couldn't get anyone on the phone. Eventually found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They got me connected to an actual IRS agent within about 30 minutes when I'd been trying for weeks. The IRS agent walked me through the entire process of filing late FBARs and doing the streamlined procedure. They confirmed I only needed to go back 3 years for tax returns and 6 for FBARs, and that I didn't need to worry about creating any 1099 forms for the foreign interest. Just needed to report it on Schedule B and check the foreign account box. Getting actual answers directly from the IRS gave me peace of mind before submitting everything, especially since penalties can be steep if done incorrectly.

I need to eat some humble pie here. After expressing skepticism about Claimyr in my previous comment, I decided to try it anyway since I was desperate to speak with the IRS about my FBAR situation. I was genuinely shocked when I got a call back in about 45 minutes connecting me to an actual IRS representative. The agent I spoke with was knowledgeable about international reporting requirements and confirmed that my case would likely qualify for the streamlined procedures. They also clarified that I didn't need to file additional documentation for small amounts of foreign interest income beyond reporting it on Schedule B. What I especially appreciated was getting confirmation directly from the IRS that my approach to calculating maximum account values was correct. Turns out I was overthinking it and making the process more complicated than necessary. Now I feel much more confident submitting my paperwork.

One important thing no one has mentioned yet - make sure you're using the right exchange rate! The Treasury Financial Management Service rate should be used for FBAR (FinCEN Form 114), but Form 8938 should use the exchange rate on the last day of the tax year. I messed this up on my first attempt and had to redo everything. Also, don't forget that the FBAR is filed electronically through the FinCEN BSA E-Filing System, not with your tax return. Form 8938 goes with your tax return. Different systems, different deadlines, different exchange rates... it's unnecessarily complicated.

Does anyone know if there's a minimum penalty for late FBARs? I'm in kinda the same situation but my accounts are much smaller (around $175k total). Everything I read online makes it sound like the penalties are going to be massive even though I just didn't know about these forms.