Question 1

What is the difference between FBAR and FATCA, and do I need to file both?

Accepted Answer

Yes, if you qualify for both thresholds. FBAR (FinCEN Form 114) reports foreign financial accounts if the aggregate value exceeded $10,000 at any point during the year. FATCA (Form 8938) reports specified foreign financial assets if the total exceeds $50,000 for single filers or $100,000 for married filing jointly. They are filed separately — FBAR electronically through FinCEN's BSA E-Filing System, Form 8938 attached to your annual US tax return. Many NRIs qualify for both and need to file them together. More detail in our FBAR vs FATCA guide.

Question 2

Do I need to report Indian bank accounts with less than $10,000?

Accepted Answer

Not on FBAR — the $10,000 threshold is an aggregate test across all your foreign accounts, not per account. If your combined NRE, NRO, and savings account balances never hit $10,000 at any single point in the year, FBAR is not required. However, FATCA Form 8938 has its own thresholds ($50,000 single / $100,000 MFJ) that consider a broader set of assets including mutual funds, stocks, and insurance policies with cash value. And if you file an Indian ITR, Schedule FA has its own ₹500,000 disclosure threshold. The thresholds do not stack — each form has its own independent test.

Question 3

Does FBAR only apply if I wire money to India, or does it apply just from holding the accounts?

Accepted Answer

FBAR has nothing to do with wiring or transferring money. It's triggered by the aggregate maximum value of all your foreign financial accounts combined — NRE, NRO, savings, demat, and any account where you have signature authority — at any single point during the calendar year. If your combined balance crosses $10,000 at any moment, even for a day, FBAR applies, whether or not a rupee ever moves. This is one of the most common gaps we find: people who've never sent money out of India assume that means nothing is reportable.

Question 4

What happens if I haven't filed FBAR or FATCA for past years?

Accepted Answer

Unfiled FBARs and Forms 8938 leave your US returns open to IRS review with no time limit. The IRS Streamlined Filing Compliance Procedures are designed exactly for this situation: non-willful omissions corrected voluntarily. For Foreign Offshore (SFOP), the penalty is 0% if you qualify. For Domestic Offshore (SDOP), it's a 5% miscellaneous penalty. In both cases, you file 6 years of FBARs, 3 years of amended returns with Form 8938, and a non-willful certification (Form 14653). The path is well-established, and the earlier you start, the cleaner the narrative. See our streamlined filing guide for the full mechanics.

Question 5

Will filing FBAR or FATCA now trigger an audit or get me in trouble for past years?

Accepted Answer

Filing itself doesn't trigger an audit. Foreign financial institutions already report account-holder data to the IRS under the FATCA agreement between the US and India, independent of whether you personally file anything — that exposure exists whether or not you file. Filing is what closes it, not what creates it. For non-willful omissions, the IRS built the Streamlined Filing Compliance Procedures specifically so people can catch up without the penalties designed for deliberate evasion. Staying undisclosed doesn't reduce your exposure — it just leaves the same information sitting unmatched on the IRS's side indefinitely.

Question 6

Is there a time limit on how far back the IRS can go for unfiled FBARs?

Accepted Answer

For the FBAR penalty itself, the IRS generally has 6 years from the date of the violation to assess a penalty. But that's a different clock from your income tax return: an unfiled FBAR or Form 8938 leaves your entire US tax return open to IRS review with no time limit at all, under Section 6501(c)(8), until the missing form is actually filed. Filing — even years late, through the Streamlined Program if you qualify — is what starts the normal limitation periods running again.

Question 7

My CPA in India says this is already taxed there, so US reporting doesn't apply. Is that correct?

Accepted Answer

No. FBAR and FATCA are information-reporting requirements, not tax forms. They do not impose additional tax — they inform the IRS about the existence of foreign accounts and assets. Tax paid in India on income from those accounts does not eliminate the US reporting obligation. An unfiled FBAR or Form 8938 leaves your entire US return open to IRS review indefinitely under Section 6501(c)(8), with no time limit, until it's filed. Filing correctly, even years late through the Streamlined Program if you qualify, is what actually closes that exposure.

Question 8

Does this review cover Indian mutual funds, PPF, EPF, and fixed deposits too, or only bank accounts?

Accepted Answer

The FBAR review covers all foreign financial accounts — bank accounts, NRE/NRO accounts, demat accounts, and any account with signature authority. The FATCA review covers a broader set of specified foreign financial assets, including mutual funds, stocks, insurance policies with cash value, and pension plans. PPF, EPF, and NPS may or may not trigger Form 8938 depending on their structure. Fixed deposits in NRE/NRO accounts are reportable on FBAR. We review everything in one pass and flag which reporting obligation applies to each asset, so nothing falls through the cracks.

Question 9

I inherited foreign accounts or investments from a parent — do I have FBAR or FATCA obligations?

Accepted Answer

Yes. Once you have a financial interest in or signature authority over the account, it counts toward your FBAR and FATCA thresholds the same as any account you opened yourself. The obligation generally starts the year you inherit it or are added as a beneficiary, not the year the account was originally opened — and it doesn't matter that you didn't make the deposits or investments, or that the account was never reported by the person who held it before you. This comes up often during estate settlement, when families discover a parent's Indian bank accounts, mutual funds, or insurance policies were never disclosed on any US return. We help figure out exactly what's reportable going forward, and whether prior years need attention too.

Question 10

How do I know if I qualify for the Streamlined Program or if I can just file late?

Accepted Answer

The Streamlined Program is for non-willful omissions where the IRS has not yet contacted you. You qualify for Streamlined Foreign Offshore (0% penalty) if you've been physically outside the US for at least 330 full days in one of the most recent three tax years. If you're still in the US, Streamlined Domestic Offshore (5% penalty) applies. If the omission was willful or the IRS has already contacted you, Streamlined is not available and you need a different approach. The free review call determines your eligibility before any work begins.

Question 11

Is this a standalone FBAR/FATCA filing, or does it connect to my broader US and India tax return?

Accepted Answer

It's coordinated, not standalone. FBAR files separately through FinCEN's BSA E-Filing System, but Form 8938 files as part of your full US return, so it has to line up with your FBAR, foreign tax credit, and Indian ITR filings. If you're already a tax filing client with us, FBAR and FATCA compliance folds into that same return and the same specialist. If you're not, this review can run on its own and connect into full filing whenever you're ready.

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