Every U.S. person that has a financial interest in, or signature or other authority over, a financial account or accounts in a foreign country must report the accounts annually on a FinCEN Report 114, Report of Foreign Bank and Financial Accounts, if the aggregate value of the foreign financial accounts exceeds $10,000 during a calendar year.

The penalty for violating the FBAR requirement depends on whether the violation was non-willful or willful. The Fifth Circuit held that the $10,000 penalty for non-willful failure to file an FBAR applied to each bank account that should have been listed on the FBAR in Bittner , 128 AFTR 2d 2021-6760 (CA 5). The Ninth Circuit and some district courts have held that non-willful FBAR penalty applies per form, not per account. The Supreme Court granted certiorari to hear an appeal of the Fifth Circuit FBAR case.