If you are a US resident or citizen with financial accounts or assets in another country, you may have reporting obligations that go beyond your annual tax return. Two separate regimes apply: FBAR (FinCEN Form 114) and FATCA (Form 8938). These are reporting requirements — not taxes — but failure to file carries severe penalties. Most H-1B visa holders with Indian bank accounts fall within FBAR filing requirements without realising it.

FBAR: FinCEN Form 114

File FBAR if: You have a financial interest in, or signature authority over, one or more foreign financial accounts with an aggregate value exceeding $10,000 at any point during the calendar year.

Deadline: April 15 with automatic extension to October 15
Where to file: BSA E-Filing system (bsaefiling.fincen.treas.gov) — NOT with your federal tax return
Cost: Free to file yourself

The $10,000 threshold is aggregate across all your foreign accounts combined. If you have three Indian accounts each holding $4,000 at any point during the year, you must file FBAR (aggregate $12,000 exceeds the threshold). The trigger is the maximum aggregate value at any single moment during the year — not the December 31 balance.

Which Accounts Must Be Reported on FBAR

  • NRE account: Yes — always report
  • NRO account: Yes — always report
  • Fixed deposits / FDs: Yes — report if held at a foreign bank
  • Demat account: Report if the account has a cash balance (securities held may also require Form 8938)
  • PPF (Public Provident Fund): Generally no FBAR required (government-administered plan). May require Form 8938 if over threshold.
  • EPF / NPS: Consult a tax professional — treatment depends on whether you have signing authority
  • Indian mutual funds: Complex PFIC (Passive Foreign Investment Company) rules apply separately — this is a distinct and serious issue

FATCA: Form 8938

Form 8938 is filed with your federal tax return (not separately) and covers foreign financial assets above higher thresholds. For US residents in 2025: single filers must file if foreign assets exceed $50,000 at year-end or $75,000 at any point during the year. For married filing jointly, these thresholds double. Form 8938 is broader than FBAR — it covers direct ownership of foreign stock, foreign entities, and certain trusts, in addition to accounts at foreign financial institutions.

Penalties for Non-Filing

FBAR penalties are serious. Non-willful failure to file: up to $10,000 per year per violation. Willful failure: up to the greater of $100,000 or 50% of the account balance per year. In egregious cases, criminal prosecution is possible. The IRS and FinCEN have increasingly pursued offshore non-compliance in recent years — the risk of discovery is not theoretical.

First-Time Non-Filers: The Streamlined Procedure

If you had foreign accounts in prior years but did not know about FBAR requirements, the IRS Streamlined Filing Compliance Procedures allow you to come into compliance voluntarily with significantly reduced penalties. The Domestic Streamlined procedure (for US residents) requires filing amended tax returns for 3 years and FBARs for 6 years, plus a one-time 5% miscellaneous offshore penalty. The Foreign Streamlined procedure (for those physically living abroad) carries no penalty at all.

This amnesty window is not permanent — it closes if the IRS contacts you first. If you have unfiled FBARs, act before receiving any correspondence from the IRS or FinCEN. The WealthSerene FBAR Checker can help you determine whether and what you need to file.