If you have complied with the Federal income tax, but you have failed to file one or more FinCEN Forms 114, Report of Foreign Bank and Financial Accounts, “FBARs”, over the preceding six years, then you may only need to file delinquent FBARs or amended FBARs, as appropriate, over the preceding six years to become compliant. There is no penalty in a submission of delinquent FBARs.
There is no penalty for making a delinquent FBAR submission, provided the taxpayer makes the submission of his own volition, before the U.S. Treasury contacts the taxpayer about the delinquency. Therefore, if a taxpayer has delinquent FBARs over the preceding six years, we prepare and file the delinquent FBARs clearing the delinquency as soon as possible.
Why six years? The statute of limitations on assessment of a penalty for failure to file an FBAR is six years. It begins running on the due date of the FBAR, whether the FBAR is filed or not.