History of FBAR

FBAR stands for “Foreign Bank Account Report.” The FBAR is a tool used by the U.S. government to identify persons who may be using foreign financial accounts to break U.S. law.

Contrary to popular belief, the FBAR is not technically required by the tax code. Instead, it is a creature of the Bank Secrecy Act. A once obscure Bank Secrecy Act form, the FBAR was first instituted as a reporting requirement for U.S. persons with overseas accounts. Today, the IRS has breathed new life into the FBAR as a tax enforcement and revenue-raising tool. The IRS has administered and enforced the FBAR since 2003.