FBAR & FATCA Enforcement Trends in 2026
FBAR & FATCA Enforcement Is Increasing
Global banking transparency continues expanding. In 2026, IRS enforcement efforts focus heavily on foreign account reporting.
Many expats mistakenly believe that paying foreign taxes removes reporting obligations. It does not.
What Is FBAR?
If your foreign financial accounts exceed $10,000 at any time during the year, you must file FinCEN Form 114.
This includes:
- Checking and savings accounts
- Foreign pensions
- Certain investment accounts
- Joint accounts
What Is FATCA?
FATCA reporting applies when foreign financial assets exceed certain thresholds. This is filed with your tax return on Form 8938.
See full reporting breakdown here:
https://www.expatriatetaxreturns.com/fbar-fatca-reporting/
Crypto & Foreign Exchanges
Foreign crypto exchanges may trigger both FBAR and FATCA exposure depending on structure. This is a rapidly evolving area.
Late Filing Options
If you failed to file, you may qualify for Streamlined Filing Procedures. Learn about catching up here:
https://www.expatriatetaxreturns.com/late-expat-tax-filing-options/
Penalties can be reduced when handled properly.
FAQ
Penalties can exceed $10,000 per violation.
Often yes, depending on structure.
Yes, through structured voluntary disclosure programs.
