Why This Matters
Many Russian immigrants maintain bank accounts in Russia — for family support, property, or business. US law requires reporting of these accounts if they exceed certain thresholds. This is one of the most common areas where immigrants unknowingly violate US law, and the penalties are disproportionately severe.
FBAR: FinCEN Form 114
Who must file: Any US person (citizen, green card holder, or resident alien) who has a financial interest in, or signature authority over, one or more foreign financial accounts whose total aggregate value exceeded $10,000 at any point during the calendar year.
Note: This is an aggregate threshold. If you have three accounts with $4,000 each, you must file — the combined $12,000 exceeds $10,000.
What accounts are covered: Bank accounts, brokerage accounts, mutual funds, and other financial accounts held at foreign financial institutions.
How to file: FBAR is filed electronically through the FinCEN BSA E-Filing system at bsaefiling.fincen.treas.gov — not through the IRS. It is filed separately from your tax return.
Deadline: April 15, with automatic extension to October 15 (no form needed to request the extension).
Penalties for non-filing:
- Non-willful violation: up to $10,000 per violation per year
- Willful violation: the greater of $100,000 or 50% of the account balance, per year — plus potential criminal charges
FATCA: Form 8938
FATCA is a separate but overlapping requirement. It is filed with your regular tax return (Form 1040).
Who must file: US taxpayers with foreign financial assets above these thresholds:
- Single filer living in the US: $50,000 at year-end or $75,000 at any point during the year
- Married filing jointly living in the US: $100,000 at year-end or $150,000 at any point
- Higher thresholds apply if you live outside the US
What to report: Foreign bank accounts, foreign stock or securities, interests in foreign entities, and other foreign financial instruments.
FBAR vs. FATCA — Key Differences
| FBAR (FinCEN 114) | FATCA (Form 8938) | |
|---|---|---|
| Filed with | FinCEN (separate system) | IRS (with tax return) |
| Threshold | $10,000 aggregate | $50,000+ (varies) |
| Deadline | April 15 (auto-extends) | Same as tax return |
Filing one does not satisfy the obligation of the other. If you meet both thresholds, you must file both.
Voluntary Disclosure
If you have unreported foreign accounts from prior years, there are IRS programs that allow you to come into compliance with reduced penalties. The Streamlined Filing Compliance Procedures are commonly used for non-willful violations. Consult a tax attorney before taking any action — this is not a DIY situation.
Practical Takeaway
If you have any bank account in Russia (or any other country) that has ever held more than $10,000 in total across all your foreign accounts, you likely need to file an FBAR. Put a recurring reminder on April 1 each year to check your account balances and file before April 15.