Bank Secrecy Act: FBAR and cash reporting
The Bank Secrecy Act makes some foreign accounts and large cash payments reportable. Here is who reports what, when it is due, and what mistakes cost, in plain English.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 29, 2026.
The Bank Secrecy Act (BSA) is a 1970 federal law that makes certain cash payments and foreign bank accounts reportable. FinCEN, a Treasury bureau, writes the rules. It matters to owners who take in cash and to anyone with money abroad. The official text is 31 U.S.C. 5311 to 5336 and 31 CFR chapter X. Our Border-and-Till Tally sorts the duties.
- FBAR: file FinCEN Form 114 if foreign accounts together topped $10,000 at any time in the year, online with FinCEN, not with the return.
- Due April 15, with automatic time to October 15.
- Form 8300: a business getting over $10,000 in cash reports within 15 days.
- Splitting cash to avoid a report, called structuring, is a crime even for legitimate money.
Who it covers
| Who | Covered? | Note |
|---|---|---|
| U.S. person or U.S.-formed entity with foreign accounts | FBAR if combined over $10,000 | Signature authority counts too |
| Any trade or business receiving cash | Form 8300 if over $10,000 | Limited exceptions apply |
| Banks and other institutions | Currency transaction report over $10,000 | The customer does not file it |
The numbers
| Item | Amount or date | Year |
|---|---|---|
| FBAR threshold | Combined over $10,000 | 2026 |
| FBAR due date | April 15, 2027 (October 15 automatic) | 2026 accounts |
| FBAR non-willful ceiling | $16,536 per report | 2025 table; none yet for 2026 |
| FBAR willful ceiling | Greater of $165,353 or 50% of balance | 2025 table |
| Earlier non-willful | $15,611, then $16,117 | 2023, 2024 tables |
| Form 8300 error | Up to $340 per return | Returns due 2026, 2027 |
Source: 31 CFR 1010.821
Our checklist
The Border-and-Till Tally:
- Border 1: list each foreign account you own or sign on, with its highest balance.
- Border 2: add them. Over $10,000 means Form 114. Any foreign account, large or small, means Yes to the first question on Schedule B, Part III, line 7a (2025 form).
- Till 1: log each cash receipt: date, amount, payer's taxpayer ID.
- Till 2: add related payments across 24 hours and 12 months.
- Till 3: file Form 8300 in 15 days, send the payer a statement by January 31, keep a copy 5 years.
Mistakes people make
- Filing the FBAR with the tax return instead of FinCEN's online system.
- Testing $10,000 account by account, not on combined highest balances.
- Missing a Form 8300 because a customer paid cash in installments.
Call an attorney about unreported foreign accounts that may have been willful, an IRS or FinCEN letter, suspected structuring, or a possible money services business. We are a CPA firm, not a law firm.
Common questions
Does an account in India count for the FBAR?
Yes, it is a foreign financial account. Form 8938 is separate and does not replace the FBAR. See our [India guide](/indian-cpa/).
Are foreign retirement accounts exempt?
The FBAR exception covers foreign accounts held by U.S. IRAs and 401(a), 403(a) and 403(b) plans only, so we read it as excluding a Canadian RRSP.
Does a customer's check trigger Form 8300?
A check on the payer's own account is not cash. Cashier's checks and money orders of $10,000 or less can count in some retail sales.
Official sources
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Form 8300 and Reporting Cash Payments of Over $10,000
- FinCEN: Bank Secrecy Act statutes and regulations
- eCFR: 31 CFR 1010.350, reports of foreign financial accounts
- eCFR: 31 CFR 1010.821, penalty adjustment table
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