IRS removes Delinquent FBAR Submission Procedures
As of July 1, 2026, the IRS has removed the Delinquent FBAR Submission Procedures, ending the published administrative process that generally allowed certain taxpayers to file late FBARs without penalties. The FBAR filing requirements themselves have not changed, but late filers now face greater uncertainty when resolving missed filings.
What changed?
The IRS removed the Delinquent FBAR Submission Procedures from its website on July 1, 2026, without issuing a formal announcement or replacement program.
For years, the IRS maintained a dedicated webpage explaining how certain taxpayers could submit late FBARs without penalties if they met specific eligibility requirements. That page has now disappeared.
Instead, the IRS’s current FBAR guidance simply states that taxpayers who fail to file an FBAR on time should file it as soon as possible. The IRS also reminds taxpayers that late filing may result in penalties and directs those who qualify for other compliance programs, such as the Streamlined Filing Compliance Procedures, to follow those procedures instead.
Published on: July 31, 2026
Written by: Clark Stott
In this article
What were the Delinquent FBAR Submission Procedures?
The Delinquent FBAR Submission Procedures allowed certain taxpayers who had simply forgotten to file FBARs to become compliant without facing penalties, provided they met strict IRS requirements.
The program was designed for taxpayers whose mistake was limited to the FBAR itself, not their income reporting.
Generally, taxpayers qualified if they:
- Properly reported all taxable income related to their foreign financial accounts
- Paid all tax due on that income
- Had not been contacted by the IRS about missing FBARs
- Were not already under civil examination or criminal investigation
Who commonly relied on this procedure?
Examples included:
- An American living in Australia who reported all investment income but never knew about the FBAR filing requirement.
- A dual citizen who recently learned that overseas bank accounts must be reported separately from a US tax return.
- Someone whose accountant prepared their federal tax return but overlooked the FBAR filing.
In situations like these, the Delinquent FBAR Submission Procedures offered a relatively straightforward path to correcting the mistake.
As of July 1, 2026, these procedures are no longer available. The IRS has removed the program from its website and has not announced a replacement, meaning taxpayers can no longer rely on this published administrative relief when filing late FBARs.
Before vs. after the IRS policy change
The biggest change is the loss of a published administrative safe harbor, not a change in the FBAR law itself. The comparison below highlights the practical difference.
|
Before July 1, 2026 |
After July 1, 2026 |
|
Delinquent FBAR Submission Procedures available |
Procedure removed |
|
IRS published guidance generally stating qualifying taxpayers would not receive penalties |
No published administrative guarantee |
|
Clear process for eligible late FBAR filings |
Greater reliance on IRS discretion |
|
Predictable administrative outcome |
More uncertainty for taxpayers correcting past omissions |
Taxpayers can still file a late FBAR. However, the IRS no longer provides a dedicated procedure explaining when late filings may qualify for penalty relief. As a result, choosing the right compliance option is now more important than before.
Why did the IRS remove the procedure?
The IRS has not publicly explained why it removed the Delinquent FBAR Submission Procedures, so any explanation beyond the official announcement is based on practitioner observations rather than confirmed IRS policy.
When the procedures were introduced, many Americans abroad were unaware of their FBAR filing obligations. Today, foreign financial institutions routinely identify US account holders and report information under FATCA, giving the IRS greater visibility into offshore accounts.
There is no evidence that the IRS plans to impose more FBAR penalties because of this change. However, taxpayers who discover missed FBARs no longer have a published penalty-relief procedure to rely on, making it more important to carefully consider the appropriate compliance path.
Who is most affected?
The change primarily affects taxpayers who discover they should have filed an FBAR after the filing deadline has already passed. If you’ve consistently filed your FBARs on time each year, this announcement is unlikely to affect you.
Some of the taxpayers most likely to be affected include:
- Americans who recently moved overseas and were unaware of the FBAR requirement.
- Dual citizens who did not realize they needed to report foreign financial accounts to the US.
- Green Card holders living abroad.
- “Accidental Americans” who were unaware of their US filing obligations.
- Taxpayers catching up on several years of US tax compliance.
These situations are more common than many people realize. In many cases, taxpayers reported all of their income correctly but simply didn’t know that filing an FBAR was a separate reporting requirement.
Example
Sarah, a US citizen living in the UK, has filed her US tax returns every year since moving overseas. In 2026, she discovers that she should also have been filing FBARs because the combined value of her UK bank accounts exceeded US$10,000.
A few months earlier, Sarah may have qualified to use the Delinquent FBAR Submission Procedures if she met the IRS requirements.
Today, that published option is no longer available. While she can still file her overdue FBARs, determining the most appropriate compliance path may require a closer review of her individual circumstances.
What should you do if you missed an FBAR?
If you’ve missed an FBAR, don’t ignore it. The appropriate next step depends on why the filing was missed and whether there are other compliance issues involved.
Not every late FBAR situation is the same. The IRS offers different compliance options depending on the facts, so it’s important to avoid assuming that one solution fits every taxpayer.
Situation 1: You only missed an FBAR
If you reported all of your taxable income, filed your US tax returns, and only recently discovered the missed FBAR, you should generally file the delinquent FBAR as soon as possible and evaluate your circumstances carefully. Although the former Delinquent FBAR Submission Procedures are no longer available, filing promptly is generally preferable to continuing the noncompliance.
Situation 2: You missed FBARs and tax returns
If you also failed to file one or more US tax returns or omitted foreign income, your situation is more complex. Depending on your circumstances, another IRS compliance option, such as the Streamlined Filing Compliance Procedures, may be more appropriate than simply filing late FBARs.
Situation 3: Your situation may be considered willful
If the failure to file was intentional or involved knowingly hiding foreign accounts, you should seek qualified legal or tax advice before taking any action. These situations involve different legal considerations and should not be handled in the same way as an inadvertent filing oversight.
Does this affect the Streamlined Filing Compliance Procedures?
No. The IRS has not announced any changes to the Streamlined Filing Compliance Procedures. The Streamlined Filing Compliance Procedures remain available for eligible taxpayers who failed to meet their US tax and reporting obligations due to non-willful conduct.
This means taxpayers who qualify may still be able to use the Streamlined procedures to correct prior tax returns and delinquent FBARs, provided they meet the program’s eligibility requirements.
That said, the recent removal of the Delinquent FBAR Submission Procedures serves as a reminder that administrative compliance programs can change over time.
While there is currently no indication that the Streamlined Filing Compliance Procedures are ending, taxpayers with unresolved filing obligations may wish to address them sooner rather than assuming today’s relief programs will always remain available.
Frequently Asked Questions
Can I still file a late FBAR?
Yes. The IRS has not eliminated late FBAR filing. You can still submit a delinquent FBAR if you discover you missed a filing. However, the Delinquent FBAR Submission Procedures are no longer available, so there is no longer a published administrative process that generally provided penalty relief for qualifying late filings.
Does this change affect Form 8938?
No. The IRS’s announcement only affects the Delinquent FBAR Submission Procedures.
Form 8938, Statement of Specified Foreign Financial Assets, is a separate reporting requirement filed with your federal tax return under the Foreign Account Tax Compliance Act (FATCA). Depending on your circumstances, you may still need to file Form 8938 even if you also file an FBAR.
Can I file several years of overdue FBARs at once?
Yes. If you’ve missed multiple years, you can generally submit delinquent FBARs for each affected year. However, the appropriate way to become compliant depends on your overall tax situation, including whether you’ve also missed US tax returns or failed to report foreign income.
Does this announcement affect taxpayers who already used the Delinquent FBAR Submission Procedures?
No. The removal of the procedures does not affect taxpayers who previously used the program while it was available. The announcement only affects taxpayers who discover missed FBAR filings after the procedures were removed.
Are FBAR penalties automatic?
No. The IRS has not stated that every late FBAR will result in a penalty. While penalties remain possible under existing law, the IRS continues to evaluate cases based on the individual facts and circumstances.
Should I seek professional advice before filing a late FBAR?
It depends on your situation. If you only missed an FBAR but have otherwise remained compliant, your circumstances may be relatively straightforward. However, if you’ve also missed US tax returns, have unreported foreign income, or are unsure which compliance option applies, consulting a qualified US expat tax professional can help you determine the most appropriate path.
Prefer to talk it through? Schedule your free callback today.
Clark Stott has been with Expat Tax Online since 2015. Being a dual national based in the UK, Clark has unique experience helping US citizens (and Accidental Americans) become tax compliant via the Streamlined Tax Amnesty program. Clark likes to help Americans in the UK keep their tax situations as simple as possible to avoid harsh IRS treatment.