Offshore Account Disclosures: What if You Missed the Deadline to File in 2025?

Federal law requires U.S. taxpayers to report qualifying offshore accounts on an annual basis. Taxpayers must report their foreign financial assets (which include offshore accounts) to the IRS using Form 8938, and they must separately report their offshore accounts to the Financial Crimes Enforcement Network (FinCEN) using the FBAR form. So, what if you missed the deadline to file in 2025? Find out from Washington D.C. offshore tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.

Taxpayers Who Haven’t Filed IRS Form 8938 and an FBAR are Delinquent

At this point in the year, taxpayers who haven’t filed IRS Form 8938 and an FBAR (if they were required to do so) are delinquent. IRS Form 8938 is due when taxpayers file their annual tax returns, and FBARs are due no later than October 15. Delinquent offshore account disclosures can expose taxpayers to significant penalties—including criminal penalties in some cases—so it is important that taxpayers come into compliance as quickly as possible.

Taxpayers have two primary options for remedying offshore account disclosure violations. However, each of these options is available in different circumstances:

• The IRS’ Streamlined Filing Compliance Procedures – The IRS’s streamlined filing compliance procedures provide a means for taxpayers to resolve non-willful offshore account disclosure violations. If you were unaware of the requirement to file IRS Form 8938 or an FBAR, you may be able to come into compliance by submitting a streamlined filing.
• IRS CI’s Voluntary Disclosure Practice – Taxpayers who have willfully failed to file IRS Form 8938 or an FBAR are not eligible to submit a streamlined filing. Instead, they must utilize the IRS Criminal Investigation’s (IRS CI) Voluntary Disclosure Practice. This is a very different process that is offered as a means “to resolve . . . non-compliance and limit exposure to criminal prosecution.”

The IRS’ streamlined filing compliance procedures and IRS CI’s Voluntary Disclosure Practice are both subject to strict eligibility criteria, and noncompliant submissions can prevent taxpayers from securing the protections that are available. Noncompliant submissions can also tip off the IRS (or IRS CI) to a taxpayer’s offshore account disclosure violations and trigger an audit or investigation. As a result, it is imperative that taxpayers make an informed decision about how to come forward.

What Should You Do If You Need to Remedy an Offshore Account Disclosure Violation in 2025?

With this in mind, if you need to remedy an offshore account disclosure violation in 2025, we strongly recommend consulting with an attorney who handles these matters. An experienced offshore tax attorney will be able to help you choose the best path forward under the circumstances at hand, submit your voluntary disclosure, and communicate with the IRS or IRS CI on your behalf as necessary.

Discuss Your Options with Washington D.C. Offshore Tax Attorney Kevin E. Thorn

If you need to know more about the options for remedying offshore account disclosure violations in 2025, we encourage you to contact us promptly. To discuss your options with Washington D.C. offshore tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, please call 202-349-4033 or contact us online today.