Offshore Account Violations: Should You Submit a Voluntary Disclosure Before the End of 2025?

Offshore Account Reporting Thresholds for 2025 (and 2026)

Two federal laws establish offshore account disclosure requirements for U.S. taxpayers. The Foreign Account Tax Compliance Act (FATCA) establishes the requirement to disclose foreign financial assets (including offshore accounts) using IRS Form 8938, while the Bank Secrecy Act establishes the requirement to file a Report of Foreign Bank and Financial Accounts (FBAR) with the Financial Crimes Enforcement Network (FinCEN).

As of 2025, the filing thresholds under FATCA and the BSA are as follows. These thresholds are remaining unchanged for 2026:

FACTA Filing Thresholds (IRS Form 8938)

For taxpayers residing in the U.S., FATCA requires the submission of IRS Form 8938 to disclose foreign financial assets (including offshore accounts) that exceed the following thresholds:

• Unmarried or Married Filing Separately – Total value of foreign financial assets exceeds $50,000 on the last day of the tax year or $75,000 at any time during the year.
• Married Filing Jointly – Total value of foreign financial assets exceeds $100,000 on the last day of the tax year or $150,000 at any time during the year.

Higher filing thresholds apply to U.S. taxpayers living abroad. Regardless of where they reside, taxpayers must file IRS Form 8938 along with their annual return.  

BSA Filing Threshold (FBAR)

The BSA establishes a single filing threshold for all taxpayers regardless of filing status and country of residence. Under the BSA, U.S. taxpayers must file an FBAR to report their offshore accounts if the aggregate value of their offshore accounts exceeds $10,000 at any time during the calendar year. FBARs are due on April 15 regardless of when taxpayers file their return, though all taxpayers receive an automatic six-month extension.

Submitting a Voluntary Disclosure to Resolve an Offshore Account Violation

Even with the automatic 6-month extension for FBARs, the 2025 deadlines for disclosing offshore accounts have passed. For taxpayers who are behind on their offshore account disclosures, coming into compliance typically involves submitting a voluntary disclosure.

The IRS has established two separate voluntary disclosure programs—one for non-willful violations and another for willful violations—and taxpayers must choose the correct program under which to file. In all cases, however, taxpayers must act promptly, as the ability to submit a voluntary disclosure ends once the IRS opens an audit or investigation.  

Request an Appointment with New York Offshore Tax Lawyer Kevin E. Thorn

If you need more information about submitting a voluntary disclosure in 2025 (or 2026), we encourage you to contact us promptly. To request an appointment with New York offshore tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 914-534-6004 or contact us confidentially online today.