The delinquent FBAR submission procedures let a US person file overdue FBARs without penalty if three things are true. You reported all income from the foreign accounts and paid the US tax on it, you are not under IRS civil examination or criminal investigation, and the IRS has not already contacted you about the missing FBARs. You file the late FBARs electronically and attach a statement explaining why they were late.
Many Americans in the UK and UAE did everything right on their tax returns but never knew about FinCEN Form 114, the Report of Foreign Bank and Financial Accounts. Their tax is paid; only the information report is missing. For them, the full Streamlined Filing Compliance Procedures are unnecessary. This guide explains who qualifies for the simpler route, how to use it, and when it is the wrong choice.
What the delinquent FBAR submission procedures are
The procedures are an IRS compliance option, separate from the general FBAR filing rules, set out on its Delinquent FBAR Submission Procedures page. They are not a formal amnesty programme with a separate form. Instead, they are a statement of IRS practice: if you meet the conditions and file the missing FBARs, the IRS will not impose a penalty for the late filing, unless it later determines otherwise on examination.
The eligibility conditions
You can use the procedures if all of the following apply. First, you have not filed a required FBAR. Second, you are not under a civil examination or criminal investigation by the IRS. Third, you have not already been contacted by the IRS about the delinquent FBARs. Finally, you have no unreported income from the foreign accounts. That last condition is the one that decides most cases.
What "no unreported income" means
Every pound of interest, every dividend and every gain from the accounts must already appear on your US returns, with US tax paid. Many Americans in Britain report their salary correctly but omit UK bank interest or ISA income, believing it is tax-free. ISA income is free of UK tax but fully taxable in the US. If any such income is missing, you do not qualify, and you need a route that amends the returns too.
Delinquent FBAR submission procedures vs streamlined filing
The choice between the two routes depends almost entirely on whether your tax returns are complete.
| Feature | Delinquent FBAR Submission Procedures | Streamlined Filing Compliance Procedures |
|---|---|---|
| Your tax returns | Filed and complete, all foreign income reported | Missing or incomplete |
| What you file | Late FBARs only, with a reason statement | 3 years of returns, 6 years of FBARs, Form 14653 or 14654 |
| Penalty | None, if the IRS accepts the facts | None under SFOP; 5% under SDOP |
| Certification of non-wilfulness | Not required as a separate form | Required, under penalty of perjury |
| Best for | Correct returns, missed FBARs only | Missed income, returns or both |
If your returns also need fixing, our guide to which years streamlined filing covers explains that route instead.
How to file late FBARs under the procedures
The process is straightforward, but precision matters. You file through the FinCEN BSA E-Filing System; there is no paper option for most filers.
Step 1: identify the years
The IRS does not set a fixed look-back for this route, but the FBAR penalty statute of limitations is six years. In practice, most advisers file the missing FBARs for the past six years. Each year is a separate FinCEN Form 114.
Step 2: value each account
Report each account's highest balance during the year, converted at the Treasury's year-end exchange rate. Joint accounts, closed accounts and signature authority all count. Our guide to the FBAR maximum account value covers the calculation in detail.
Step 3: select the late-filing reason
When you file each late FBAR, the system asks why it is late. You select the option for filing late and give a reason. Keep it factual and specific: for example, that you were unaware of the FBAR requirement, that all income from the accounts was reported, and when you learned of the obligation. Avoid vague or inconsistent explanations. The IRS can compare your statement with your returns.
The traps that push you out of this route
Three situations come up repeatedly in our work with UK-based Americans.
Unreported UK interest or ISA income
As noted above, this is the most common disqualifier. Before filing under the procedures, check every account's income against your Form 1040 for each year. A single missed Cash ISA interest payment is enough to fail the condition.
Missed Form 8938 or other information returns
The procedures cover FBARs only. If you also missed Form 8938, Form 8621 for UK funds or Form 5471 for a UK company, you need a separate fix, often the Delinquent International Information Return Submission Procedures. Our IRS streamlined filing page explains how the routes fit together.
Wilful conduct
If you knew about the FBAR requirement and chose not to file, none of the non-wilful routes is appropriate. That situation needs legal advice before any filing.
An illustrative case
Consider an illustrative American teacher in Abu Dhabi with a UAE salary account and a UK savings account left over from earlier years. The facts are illustrative. Her US returns claimed the Foreign Earned Income Exclusion and correctly reported the small UK interest each year. She never filed FBARs. Because no income is missing and the IRS has not contacted her, she files six late FBARs under the procedures with a short, consistent explanation. No amended returns and no penalty certification are needed.
If you have missed FBARs and are unsure which route fits, book a consultation with our FBAR and FATCA team. We check your returns against your accounts first, so you choose the right procedure.
Frequently Asked Questions
What are the IRS Delinquent FBAR Submission Procedures?
The Delinquent FBAR Submission Procedures are an IRS compliance option for US persons who missed FBARs but reported all income from their foreign accounts. If you are not under examination and the IRS has not contacted you about the FBARs, you file the late forms electronically with an explanation, and the IRS generally will not impose a penalty.
Who qualifies for the delinquent FBAR submission procedures?
You qualify if you have no unreported income from the foreign accounts, are not under IRS civil examination or criminal investigation, and have not already been contacted by the IRS about the delinquent FBARs. If income from the accounts is missing from your returns, you should use the Streamlined Filing Compliance Procedures instead.
How many years of late FBARs should I file?
Most advisers file the missing FBARs for the past six years, matching the six-year statute of limitations for FBAR penalties. Each year requires a separate FinCEN Form 114 filed through the BSA E-Filing System.
Is there a penalty for filing FBARs late under these procedures?
Generally no. The IRS states that it will not impose a penalty for failing to file FBARs if you properly reported and paid tax on the income from the accounts and meet the other conditions. However, FBARs filed this way can still be selected for examination.
Do I need to file Form 14653 for delinquent FBARs?
No. Form 14653 and Form 14654 are certifications used in the Streamlined Filing Compliance Procedures. Under the Delinquent FBAR Submission Procedures, you provide a statement explaining why the FBARs were filed late, but no separate certification form is required.
What if I also missed Form 8938?
The Delinquent FBAR Submission Procedures cover only FBARs. Missing Form 8938, Form 8621, Form 5471 or other international information returns need a separate fix, often the Delinquent International Information Return Submission Procedures, or a streamlined submission if income was also omitted.
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