FBAR Filing Requirements for Dual Citizens of Canada and the US
- Tiffany Woodfield
- Jun 1
- 9 min read
Written by Tiffany Woodfield, Senior Wealth Advisor, Portfolio Manager, CRPC®, CIM®, TEP®
Reviewed by Mia Bent, CPA, CA, U.S. Tax Advisor mia@miabentcpa.com
As a US citizen, green card holder, or resident, you're required to file the Foreign Bank Account Report (FBAR) if you have foreign financial accounts with a combined value of over $10,000 at any point during the year. The FBAR isn't a tax form. It's a disclosure that tells the US government that your foreign accounts exist. It's filed separately from your tax return.
You can file electronically through the Financial Crimes Enforcement Network (FinCEN). The deadline to file is April 15th of each year.
The complexities of ensuring your cross-border finances are onside with the IRS while also preventing a large tax bill can seem overwhelming.
I've worked with many clients who are moving or have already moved across the border. A common issue my Canada-US clients have encountered is finding accurate information that's simple to understand.
When it comes to FBAR filing requirements and reporting, it can get complicated. So choosing to work with a cross-border accountant will likely be your best option. They will file the FBAR for you and stay on top of filing requirements.
Also, comprehensive cross-border financial planning is critical when moving across the border. So, make sure that you begin working with a dual-licensed financial advisor 1-2 years before you move.
This article will provide you with a basic overview of FBAR filing requirements. For more comprehensive information, refer to the IRS Website or speak with a cross-border accountant.
This article is not intended to provide legal or tax advice; it is general in nature. You need to speak to a qualified professional to gain insights into your particular situation.
This article is not intended to provide legal or tax advice; it is general in nature. You need to speak to a qualified professional to gain insights into your particular situation.
Background on When Foreign Account Monitoring Increased
The requirement to file FBARs (Foreign Bank Account Reports) is not new. Since 1970, the Bank Secrecy Act has required a US person who owns a foreign account to file an FBAR.
However, in 2010, the FATCA (Foreign Account Tax Compliance Act) came into law. This act requires all non-US financial institutions (e.g. Canadian financial institutions) to report information on US persons to the IRS. It also requires US persons to report their non-US financial assets each year to the IRS on Form 8938.
FATCA is in addition to the requirement to report FBARs to the Financial Crimes Enforcement Network (FinCEN) on Form 114. When FATCA came into law, it was introduced to prevent US taxpayers from avoiding taxes by keeping their foreign financial assets a secret.
Some Foreign Accounts Don't Need to Be Reported
First, you need to understand which accounts need to be reported.
If you are a US person and have a bank account, mutual fund, brokerage account or financial interest at a financial institution outside the United States, you may need to file an FBAR.
If the combined value of these foreign accounts is more than $10,000 at any time during the year, you will be required to file an FBAR.
Some accounts don't need to be reported.
Accounts in an IRA or another retirement plan, such as a 401(k), don't need to be reported. To confirm which accounts you need to file, speak to your cross-border accountant.
For more information, go to the IRS Government Website and review the FBAR Reference Guide.
This is an excellent guide that provides examples and further information on how and when to file your FBAR. It will help you determine which accounts are considered FBARs and if you have a financial interest in a foreign account.
When Should You File Your FBAR?
Your annual FBAR is due by April 15th. You are entitled to an automatic extension until October 15th if you need more time. Remember to keep your records for five years from the reporting date.
How to Electronically File Your FBAR
You don't file your FBAR with your annual tax return. Instead, you file through the Financial Crimes Enforcement Network system.
If you prefer to have your accountant or lawyer file for you, they will need you to fill out a form authorizing them to file your FBARs on your behalf.
Are There FBAR Penalties for not Filing?
The penalties for not filing an FBAR (Foreign Bank Account Report) are severe.
If you willfully failed to file, the civil penalty may be either 50% of the total balance of the foreign account or $165,353* — whichever is greater. A willful violation means you intentionally didn't report your accounts. The criminal penalties for a willful violation are severe, including significant monetary penalties and potentially imprisonment.
A non-willful violation occurs when you didn't realize you had a tax obligation. The penalties for non-willful violation are up to $16,536* per report, regardless of the number of accounts. (In other words, it’s not $16,536 per account.)
The Federal Civil Penalties Inflation Adjustment Act requires government agencies to adjust penalty amounts for inflation each year. FinCEN does this annually and publishes the updated figures in the Federal Register. Those inflation-adjusted numbers are what get applied in practice.
So, while the law says that $10,000 is the ceiling for a non-willful violation and $100,000 is the maximum for a willful violation, the inflation adjustment mechanism legally allows FinCEN to collect more than that. The statute sets the base, and the inflation adjustment process sets the real-world current amount.
For the latest inflation-adjusted penalties, click the link below to see the Federal Register.
*Adjusted each year for inflation, in 2026, the current civil maximum penalty for non-willful is $16,536. For willful, the current civil maximum penalty is $165,353 or 50% of the account balance, whichever is greater.
Why It's Important to Work with a Cross-Border Financial Advisor and Accountant
The benefits of having a trusted cross-border financial advisor and cross-border accountant are significant.
They can help you navigate these rules and help you stay onside with the IRS, so you can relax and plan your next adventure.
Trying to understand the rules on one side of the border is difficult. Then, when you add the complications of having to file in both countries, it can be overwhelming. Having a team that specializes in this area reduces your stress and helps to simplify things.
In addition, filing your FBAR is just one of many complexities required of US persons living in Canada.
You also need to make sure you are not invested in passive foreign investment companies (PFICs), optimize your portfolio for your country of residence, avoid issues with trusts, and keep your estate plan current, based on where you live.
This is a non-exhaustive list of the things many US persons living in Canada need to execute to ensure they’re compliant, tax-efficient, and optimized for where they live:
File a US tax return every year on worldwide income
File an FBAR if combined foreign account balances exceed $10,000
File Form 8938 under FATCA if foreign assets exceed the reporting threshold
Report Canadian registered accounts, including RRSP, TFSA, and Registered Education Savings Plan (RESP), to the IRS where required
Avoid investing in PFICs
Optimize your investment portfolio for your country of residence
Understand how the Canada-US Tax Treaty affects your tax obligations in both countries
Plan withdrawals from US retirement accounts, including IRAs and 401(k)s
Coordinate Canada Pension Plan (CPP), Old Age Security (OAS), and US Social Security benefits
File a Roth IRA treaty election if you hold a Roth IRA and move to Canada
Keep your estate plan current and ensure it works on both sides of the border
Understand the US estate tax exposure if your worldwide estate exceeds the exemption threshold
Avoid accidentally triggering a departure tax when leaving Canada
Understand the tax treatment of Canadian employer benefits and stock options
Review any trusts you are involved in for cross-border compliance and tax issues
Monitor your green card status if applicable, as long-term holders have additional tax obligations
Plan around the alternative minimum tax (AMT) where applicable
Keep records of the cost basis for all investments in both countries
Understand the implications of buying or selling real estate in either country
FBAR Filing FAQ
What are the requirements to file an FBAR?
As a US citizen, green card holder, or resident, you need to report foreign financial accounts that exceeded $10,000 at any point during the year. It doesn't matter if the accounts earned income or not. The threshold applies to the total across all accounts combined, not each account on its own. To report your foreign bank and financial accounts, you must file an FBAR. You can file FinCEN Form 114 electronically through the BSA E-Filing System. This is separate from your tax return.
Do I need to file FBAR if I have less than $10,000?
Generally, no — but be careful here. The $10,000 threshold applies to the combined balance across all your foreign accounts, not each one individually. So, if you have three accounts each holding $4,000, that is $12,000 combined, and you are required to file. If your aggregate balance never crossed $10,000 at any point during the year, you likely don't need to file.
What accounts are exempt from FBAR?
A few account types do not need to be reported. US retirement accounts, such as an IRA or 401(k), are exempt. Accounts held at a US military banking facility are also exempt. It is worth noting that Canadian registered accounts, such as an RRSP, are not exempt. They need to be reported if your combined foreign account balances exceed the $10,000 threshold. When in doubt, ask your cross-border accountant.
Who is not required to file FBAR?
If you are not a US person — meaning you're not a US citizen, green card holder, or resident for tax purposes — you don't need to file an FBAR. US persons who had no foreign financial accounts, or whose combined foreign account balances never exceeded $10,000 during the year, are also not required to file. Children are not exempt simply because they are minors. If a child has a foreign account that meets the threshold, a parent may need to file on their behalf.
What happens if I do not file FBAR?
The penalties are serious. For a non-willful violation (you simply did not know about the requirement), the penalty can be up to $16,536 per year. For a willful violation, the penalty jumps to the greater of $165,353 or 50% of the account balance. On top of that, willful violations can lead to criminal prosecution. The good news is that if you have never filed and your failure was non-willful, there are IRS programs that allow you to catch up with reduced or zero penalties. Act before the IRS contacts you first.
What happens if I have more than $10,000 in a foreign bank account?
You are required to report it by filing an FBAR. Having more than $10,000 in a foreign account does not mean you owe tax on it. The FBAR is a disclosure requirement, not a tax form. You're simply telling the US government that the account exists. That said, any income earned in that account does need to be reported on your US tax return. A cross-border accountant can help you make sure both obligations are handled correctly.
What income is reported on the FBAR?
The FBAR is not an income reporting form. It reports the existence of foreign financial accounts and their maximum balance during the year. You do not report income on the FBAR itself. Any income earned in those foreign accounts, such as interest, dividends, and capital gains, must be reported separately on your US income tax return. The two reporting obligations work together but are filed through completely different systems.
How much is the FBAR fee?
There is no government fee to file an FBAR. It is free to submit through the FinCEN electronic filing system. The cost you will incur is the professional fee charged by your cross-border accountant to prepare and file it on your behalf. That cost varies depending on the complexity of your accounts and how many years need to be filed.
Does FBAR need to be filed every year?
Yes, as long as your combined foreign account balances have exceeded $10,000 at any point during the year, you need to file. Every year that this is true, you must file. The annual deadline is April 15, with an automatic extension to October 15 if you need more time. It is not a one-time filing — it is an ongoing obligation for as long as you hold qualifying foreign accounts.
Next Steps
If you’re a Canadian resident or are planning on moving to Canada or the US and need assistance with moving and optimizing your investments, estate planning, wealth management and portfolio management, please get in touch. At SWAN Wealth, we specialize in Canadian financial planning, cross-border financial planning and cross-border wealth management.
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If you’re planning a cross-border move, these articles and guides will help simplify your move and ensure everything is covered.
About the Author
TIFFANY WOODFIELD
Tiffany Woodfield is a Portfolio Manager licensed in Canada and the USA, a Chartered Investment Manager (CIM), a Chartered Retirement Planning Counselor (CRPC), a Trust and Estate Practitioner (TEP) and the co-founder of SWAN Wealth Management, along with her husband, John Woodfield. Tiffany advises clients who live in Canada and the United States and want to simplify their cross-border financial plan, move their assets across the border, and optimize their investments to minimize their tax burden. Together, Tiffany and John Woodfield help their clients simplify their cross-border finances and create long-term revenue streams that will keep their assets safe whether they live in Canada or the U.S.
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