Yes, delinquent FBAR penalty relief still exists.
Although the IRS removed its public Delinquent FBAR Submission Procedures webpage in July 2026, the underlying IRS guidance governing late FBARs remains in the Internal Revenue Manual. In fact, the current IRS manual still contains a section specifically titled “Delinquent FBAR Filing Procedures.”
For Americans living abroad who recently discovered they missed an FBAR, this is an important clarification. The disappearance of the IRS webpage did not eliminate the mechanism that allows qualifying taxpayers to file delinquent FBARs without penalties.
What Are the Delinquent FBAR Filing Procedures?
The Foreign Bank Account Report, or FBAR (FinCEN Form 114), is required when a U.S. person has a financial interest in or signature authority over foreign financial accounts whose combined value exceeds $10,000 at any point during the calendar year.
The FBAR is filed separately from a U.S. tax return through FinCEN’s BSA E-Filing System.
This requirement catches many Americans abroad by surprise. An ordinary checking account, savings account, investment account, or certain other financial accounts in the country where you live can create an FBAR filing requirement even if you owe no U.S. tax.
You can read more about the basic requirements in our FBAR filing guide.
When an FBAR should have been filed but wasn’t, the IRS has procedures for submitting it late.
What Happened to the IRS Delinquent FBAR Webpage?
On July 1, 2026, the IRS removed its longstanding public webpage explaining the Delinquent FBAR Submission Procedures.
We covered that development in our earlier article, IRS Quietly Removes Delinquent FBAR Submission Procedures From Its Website.
At the time, the removal understandably raised an important question: Had the IRS eliminated delinquent FBAR penalty relief, or had it simply removed the webpage explaining it?
We now have a much clearer answer.
The public webpage is gone. The underlying IRS procedures are not.
The IRS Internal Revenue Manual Still Contains the Delinquent FBAR Procedures
The strongest evidence comes directly from the IRS.
The current Internal Revenue Manual Section 4.26.16, which governs FBAR requirements and enforcement, still contains IRM 4.26.16.3.11 — Delinquent FBAR Filing Procedures.
That section instructs taxpayers to file delinquent FBARs electronically and provide a reason explaining why the FBAR was filed late.
More importantly, the IRS manual states that “a penalty will not be asserted” for an account when the IRS determines that:
- The failure to report the account on time was not willful.
- The failure was due to reasonable cause.
- The account was properly reported on the delinquent FBAR.
That language remains on the IRS website today.
The current version of IRM 4.26.16 was transmitted on August 26, 2025, and the Delinquent FBAR Filing Procedures in Section 4.26.16.3.11 remain in place.
In other words, removing the public-facing webpage did not remove the instructions IRS personnel use when dealing with delinquent FBARs.
The Reasonable Cause Exception Is Also Written Into Federal Law
There is an even more important layer of protection.
The reasonable cause exception does not depend solely on an IRS webpage or even the Internal Revenue Manual. It is also contained in the federal statute governing FBAR penalties.
Under 31 U.S.C. § 5321(a)(5)(B)(ii), no penalty is imposed for a non-willful FBAR violation when the violation was due to reasonable cause and the relevant account information was properly reported.
This distinction matters.
The statute provides the legal basis for the reasonable-cause exception, while the Internal Revenue Manual tells IRS personnel how delinquent FBAR filings and penalties are handled administratively.
Neither disappeared when the IRS removed its public webpage.
So, Does Delinquent FBAR Penalty Relief Still Exist?
Yes.
As of August 2026, the IRS’s own Internal Revenue Manual continues to recognize penalty relief for qualifying delinquent FBARs.
The IRS has also retained the practical mechanism for filing an FBAR late.
FinCEN’s current instructions for filing late reports specifically tell taxpayers filing after the deadline to select a reason for filing late. If none of the available choices accurately describes the situation, the filer can select “Other” and provide a written explanation.
This closely matches IRM 4.26.16.3.11, which instructs delinquent FBAR filers to explain why their filing was late.
So while one IRS informational webpage disappeared, the rest of the system surrounding delinquent FBAR filings remains in place.
What Does “Reasonable Cause” Mean for a Late FBAR?
Reasonable cause is based on the facts and circumstances surrounding the failure to file.
The IRS manual explains that courts evaluating reasonable cause have looked at whether the taxpayer exercised the level of care and prudence reasonably expected under the circumstances.
For an American abroad, relevant facts could include how the person became aware of the FBAR requirement, what they understood about their U.S. filing obligations, and what they did once they discovered the mistake.
Simply saying “I didn’t know” does not automatically establish reasonable cause. The explanation should accurately describe what happened rather than trying to fit a particular legal standard.
This is also why the distinction between non-willful conduct and intentionally ignoring a known filing obligation matters.
Example: An American Abroad Who Filed Tax Returns but Missed FBARs
Consider an American who has lived in Germany for ten years.
She has always filed Form 1040 and correctly reported the interest earned on her German bank accounts. However, she recently learns that because the combined balance of those accounts exceeded $10,000, she should also have been filing FBARs.
Her problem is limited to the missing FBARs.
If her failure was non-willful, she has reasonable cause, and she properly reports the accounts on her delinquent FBARs, the current IRS Internal Revenue Manual provides that a penalty will not be asserted.
This is precisely the type of situation in which filing delinquent FBARs should be considered.
What If You Also Failed to Report Foreign Income?
This is where the situation changes.
The delinquent FBAR procedures should not be confused with the Streamlined Filing Compliance Procedures.
If you filed your U.S. tax returns correctly and your only problem is that you missed your FBARs, filing delinquent FBARs with an appropriate explanation may resolve the issue.
If you also:
- Failed to file U.S. tax returns.
- Failed to report foreign interest, dividends, or other income.
- Failed to report other foreign financial assets.
- Have additional missing international information returns.
then simply filing delinquent FBARs may not correct your overall U.S. tax compliance.
Many Americans abroad in this position instead use the Streamlined Filing Compliance Procedures.
The IRS continues to maintain its official Streamlined Filing Compliance Procedures, including procedures for taxpayers residing outside the United States.
How Do You File a Delinquent FBAR?
The current IRS and FinCEN instructions remain straightforward.
A taxpayer filing a late FBAR should:
- Prepare FinCEN Form 114 for each required year.
- Use the filing rules applicable to the year being reported.
- File electronically through the FinCEN BSA E-Filing System.
- Select the appropriate reason for filing late.
- Provide an explanation when required.
- Accurately report all foreign financial accounts required for that year.
- Retain a copy of the filed FBAR for their records.
The IRS specifically confirms these steps in IRM 4.26.16.3.11, while FinCEN separately continues to provide instructions for late BSA filings.
Does Filing a Late FBAR Automatically Trigger a Penalty?
No.
A late FBAR does not automatically result in an FBAR penalty.
The current IRS manual expressly recognizes circumstances in which penalties should not be imposed, including reasonable-cause situations involving accurate delinquent FBARs.
IRS examiners also retain discretion when evaluating FBAR violations. IRM 4.26.16 explains that, depending on the facts and circumstances, an examiner can consider whether a warning letter and corrected filing are sufficient to achieve future compliance.
That does not mean every late FBAR is automatically penalty-free. The taxpayer’s facts—especially reasonable cause and whether the conduct was willful—still matter.
For more detail about potential exposure, see our guide to FBAR penalties for U.S. expats.
What Should Americans Abroad With Missing FBARs Do Now?
The most important takeaway from the IRS’s removal of its webpage is that the website changed, but the underlying relief did not disappear with it.
If you’ve discovered missing FBARs, first determine whether your problem is limited to FBAR reporting or whether your U.S. tax returns also need to be corrected.
If your tax returns are otherwise complete and accurate, delinquent FBAR filing may be the appropriate route.
If tax returns, foreign income, or other international information returns are also missing, the Streamlined Filing Compliance Procedures may provide a more appropriate way to become compliant.
And if there is any concern that the failure was intentional or potentially willful, do not simply submit late FBARs without first obtaining professional advice.
