If you have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114), are not under a civil examination or a criminal investigation by the IRS, and have not already been contacted by the IRS about the late FBARs, you can simply file them.
If you don’t owe any additional tax on the income from your foreign accounts and you don’t have to file any late or amended tax returns to report and pay additional tax, you do not need to use either the Offshore Voluntary Disclosure Program (OVDP) or the Streamlined Filing Compliance Procedures which require you to pay penalties.
To fix late FBAR reports take the following steps:
Review the FBAR instructions;
File all FBARs electronically at BSAE filing;
On the cover page of the electronic form, select a reason for filing late; and
Include a statement explaining why the FBARs are being filed late.
If you are unable to file electronically, you should contact the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) help line at 1-800-949-2732 or 1-703-905-3975 (if calling from outside the United States) to determine possible filing alternatives.
The IRS will not impose a penalty for the late FBARs if you properly reported and paid tax the income from the foreign financial accounts
The IRS will not impose a penalty for the late FBARs if you properly reported and paid tax the income from the foreign financial accounts that you are going to report in the late FBARs, as long as you have not previously been contacted regarding an income tax examination or a request for unfiled returns for the years for which the late FBARs are going to be submitted.
Late FBARs will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.