Acceptable reasons for filing an FBAR late generally fall under the reasonable cause exception: a serious illness, the death of an immediate family member, a natural disaster or other event beyond your control, or an inability to access the financial records you need. The Report of Foreign Bank and Financial Accounts is due April 15, with an automatic extension to October 15, so a late filing means you missed both.1IRS. Report of Foreign Bank and Financial Accounts (FBAR) The exception only applies to non-willful violations, and only if you properly reported the account balance.2Office of the Law Revision Counsel. 31 U.S.C. § 5321
What the IRS Treats as Reasonable Cause
There is no single definition of reasonable cause for FBARs. The IRS looks at the full picture and asks whether you used ordinary business care but still could not meet the deadline. The situations that typically qualify include:3IRS. Penalty Relief for Reasonable Cause
- Serious illness, or the death of an immediate family member
- Natural disasters or other events outside your control
- Inability to obtain the financial records needed to complete the form
Documentation strengthens the claim. Hospital records for an illness, or evidence of a disaster that affected you, help show the facts behind the explanation.3IRS. Penalty Relief for Reasonable Cause
Reasons the IRS Usually Rejects
Some explanations rarely work. The IRS generally does not accept a simple mistake, forgetting the deadline, or not knowing the law existed. Hiring a tax professional does not usually get you off the hook either; you are responsible for filing on time even if an advisor missed it on your behalf.3IRS. Penalty Relief for Reasonable Cause
If the government concludes the failure was willful, the reasonable cause exception is unavailable regardless of the explanation offered.2Office of the Law Revision Counsel. 31 U.S.C. § 5321
How to File Late and Present Your Reason
Your reason is submitted through one of two IRS paths, depending on whether your tax returns also need correcting.
Delinquent FBAR Submission Procedures
The Delinquent FBAR Submission Procedures (DFSP) are open to you if the IRS has not contacted you about the late forms, you are not under investigation, and you properly reported and paid tax on all income from the foreign accounts on your original returns. Under this program, no penalty is imposed.4IRS. Delinquent FBAR Submission Procedures
You file FinCEN Form 114 electronically for each missing year. On the cover page you select a reason for the late filing and include a statement explaining it. The filings are not attached to your tax return and remain subject to review or audit.4IRS. Delinquent FBAR Submission Procedures
Streamlined Filing Compliance Procedures
If you also need to amend tax returns to report foreign income, the Streamlined Filing Compliance Procedures (SFCP) are the usual route. The program is for taxpayers who can certify that the failure to report was non-willful, meaning it stemmed from a mistake or misunderstanding of the law rather than a deliberate choice. You generally submit amended returns for the last three years and FBARs for the last six.5IRS. Streamlined Filing Compliance Procedures The non-willful certification is where your reason for the late filing lives in this program.
Keep Records to Back the Explanation
Whatever reason you give, keep the underlying records. For each foreign account you must retain the name on the account and account number, the name and physical address of the financial institution, the type of account, and its highest value during the year, for at least five years from the FBAR’s original due date.1IRS. Report of Foreign Bank and Financial Accounts (FBAR) Supporting evidence for the reason itself, such as medical or disaster documentation, belongs in the same file.3IRS. Penalty Relief for Reasonable Cause