The three-part test
Generally, you must file an FBAR for a calendar year if all three of these are true:
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You are a "U.S. person"
A U.S. citizen or resident, or a U.S. entity such as a corporation, partnership, LLC, trust, or estate.
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You had a financial interest in, or signature authority over, a foreign financial account
You owned the account, were its beneficial owner, or could control the movement of its assets.
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The aggregate value exceeded $10,000
The combined maximum value of all your foreign accounts was more than $10,000 at any point during the year.
Who is a "U.S. person"?
For FBAR purposes, a U.S. person generally includes:
- U.S. citizens — including those living abroad.
- U.S. residents — including green-card holders and those meeting the substantial-presence test.
- Entities — corporations, partnerships, and limited liability companies created or organized in the U.S.
- Trusts and estates formed under U.S. law.
Living abroad? U.S. citizens and residents generally remain subject to FBAR rules even while living outside the United States. Citizenship or residency status — not where you physically live — drives the obligation.
Financial interest vs. signature authority
You can have a filing obligation in two different ways:
| Type | What it means | Examples |
|---|---|---|
| Financial interest | You are the owner of record or the beneficial owner of the account. | Your personal foreign savings account; an account owned through an entity you control. |
| Signature authority | You can control the disposition of the account's assets by communicating with the institution — even without owning it. | A company account you can direct as an employee or officer; a relative's account you are authorized to manage. |
This is why some people are surprised to learn they may need to file — signature authority alone can create an obligation.
Understanding the $10,000 threshold
The threshold is based on the combined value of all your foreign accounts, using the highest value each account reached during the year — not the year-end balance, and not each account individually.
Example: You hold three foreign accounts that peaked at $4,000, $4,000, and $3,000 during the year. Individually none exceeds $10,000, but together they reach $11,000 — over the threshold. In this scenario, an FBAR would generally be required, and all foreign accounts must be reported, not just the largest.
Joint accounts and spouses
Jointly held accounts are generally reportable by each U.S. person who is a co-owner. There are limited circumstances in which a spouse may be included on the other spouse's FBAR rather than filing separately, but specific conditions must be met. When in doubt, review the current FinCEN instructions.
Common exceptions
Certain filers or accounts may be exempt or subject to special rules, including:
- Certain accounts jointly owned by spouses (under specific conditions).
- Accounts held by some U.S. government entities and certain retirement plans.
- Individuals whose signature authority arises only from their employment, in specific situations.
- Correspondent/Nostro accounts and certain accounts held at U.S. military banking facilities.
Exceptions are narrow and fact-specific. Do not assume one applies without confirming.
Reminder: This is general educational information, not personalized legal or tax advice. Whether you must file depends on your exact facts. Confirm with the official FinCEN instructions or a qualified professional. See our disclaimer.