FBAR: reporting your Canadian accounts to the US Treasury
If you are a US citizen or resident with foreign accounts, including Canadian bank accounts, RRSPs, or TFSAs, this filing is separate from your tax return and carries its own penalties.
Last reviewed by US Tax Professionals, a cross-border tax practice in Winnipeg.
The threshold
FBAR is required when the combined highest balances of all your foreign financial accounts exceed 10,000 US dollars at any point during the year, even for a single day. For US citizens living in Canada this is easier to cross than it sounds: a chequing account, a savings account, and regular RRSP, TFSA, or RESP contributions can add up quickly, which is why many US citizens in Canada have an FBAR requirement.
It is not part of your tax return
FBAR is filed with FinCEN, not the IRS, using a separate electronic system, and it reports account existence and balances rather than income.
The penalty structure is why this matters
Non-willful failures to file can still carry significant penalties. For people who qualify, the IRS Streamlined Filing Compliance Procedures and the Delinquent FBAR Submission Procedures are ways to catch up.
FBAR and Form 8938 are not the same thing
Form 8938 (FATCA) is a separate foreign asset disclosure attached to your 1040, with its own and much higher thresholds. Having to file an FBAR does not automatically mean you have to file Form 8938, and some people have to file both.
Not sure how this applies to your situation?
This guide is general information, not individualized advice. Request a consultation to see how FBAR fits your actual filing.
Who this usually applies to