The DOJ and IRS Are Actively Conducting FBAR Investigations in 2026

The DOJ and IRS are actively targeting business owners suspected of failing to file FBARs to disclose their foreign bank accounts. Under federal law, failure to file an FBAR can result in a fine equal to 6 times the undisclosed account value, plus additional criminal penalties.

Individual and corporate taxpayers who own foreign bank accounts are required to disclose them to the federal government annually. This mandatory disclosure is made using the Report of Foreign Bank and Financial Accounts (FBAR). Taxpayers must often file IRS Form 8938 as well. DOJ and IRS FBAR investigations can have serious consequences—including criminal consequences in many cases. Learn more from New York tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

Federal Investigations Targeting Nondisclosure of Foreign Bank Accounts Pose Serious Risks

Taxpayers’ obligation to disclose foreign bank accounts to the federal government exists under two statutes: the Bank Secrecy Act (BSA) and the Foreign Account Tax Compliance Act (FATCA). While the BSA and FATCA include civil penalties for inadvertent noncompliance, they also provide for criminal enforcement when warranted.

We have recently seen an increase in criminal investigations by the DOJ and the IRS, including FBAR investigations.

In all cases, taxpayers accused of FBAR noncompliance can face steep fines—up to six times the value of their undisclosed foreign accounts. In criminal cases, additional fines and federal prison time are also on the table.

This makes it vital for business owners and other taxpayers with foreign bank accounts to prioritize compliance with FBAR (and IRS Form 8938) in 2026. Those who are not in compliance should take steps to promptly come into compliance, as proactively remedying disclosure violations can significantly mitigate the risks involved.

How Thorn Law Group Can Help

We assist clients in New York and worldwide with all aspects of foreign bank account disclosure compliance. If you are at risk (or your business is at risk) of facing a DOJ or IRS FBAR investigation, we can:

• Submit an IRS Streamlined Disclosure Filing – This option is available to taxpayers who have inadvertently failed to meet their FBAR filing obligations.
• Submit an IRS Voluntary Disclosure – This option is available to taxpayers who have willfully failed to file an FBAR and are at risk of criminal prosecution.

If it is too late to take a proactive approach—if you are already under investigation by the DOJ or IRS—we can help in this situation as well. We have significant experience handling foreign bank account disclosure investigations, and we can use that experience to help protect you and your business by all available means.

Contact New York Tax Lawyer Kevin E. Thorn for More Information

If you would like more information about our foreign bank account disclosure compliance and defense services, please get in touch. To discuss your situation with New York tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, call 914-534-6004 or contact us confidentially online today.