IRS Removes Its Public Penalty-Free FBAR Fix-Up Guidance: What Dallas-Area International Business Owners and Expats Need to Know in 2026

The IRS removed its public Delinquent FBAR Submission Procedures page in July 2026. That page had offered a defined route for certain taxpayers whose foreign income was properly reported but whose FBARs were late. A Texas tax lawyer can help Dallas-area business owners and expats understand what the change means for older filings.

The removal does not create a new FBAR law. It also does not mean every late filing will produce a penalty. It does mean taxpayers can no longer rely on the same public program description when trying to correct past failures.

What did the former FBAR procedure provide?

The former procedure applied when the taxpayer had reported all income from foreign accounts and paid the related tax. The taxpayer also could not be under a civil examination or criminal investigation by the IRS. The IRS could not have already contacted the person about the missing FBAR.

A qualifying taxpayer could file the late reports with an explanation. The IRS stated that it would not impose an FBAR penalty under that procedure. That published assurance gave some taxpayers a fairly direct way to correct an isolated filing failure.

Does the change make FBAR penalties automatic?

No. Current IRS guidance says that filing late is a violation that may lead to penalties. It also says the decision to assert a penalty depends on the facts and circumstances.

The Internal Revenue Manual still says a penalty will not be asserted when the failure was non-willful and due to reasonable cause. The foreign account must also be properly reported on the late FBAR. This protection requires a case-specific showing, so it is not the same as relying on the former public procedure.

Who must file an FBAR?

People who are U.S. citizens or residents may face an FBAR filing duty if their reportable foreign accounts have a combined value above $10,000, even briefly, during the calendar year. That obligation can also apply to companies or other entities created under U.S. law.

The requirement may apply to someone who owns a foreign account or has signature authority over one. Business owners should therefore review company accounts as well as personal accounts. Expats should not assume that living outside the United States removes the filing duty.

When is the FBAR due?

The FBAR is generally due on April 15 for accounts held during the prior calendar year. An automatic extension runs through October 15, and no separate extension request is required.

This timing is especially important in 2026. An FBAR covering accounts held during 2025 is not late before the automatic October 15 deadline. Older missing reports should be reviewed separately instead of being treated as part of the current filing year.

What options remain for a late FBAR?

The IRS currently tells taxpayers who have not been contacted or placed under investigation to file late FBARs as soon as possible. The electronic form allows the filer to explain the reason for filing late. A corrected report should be filed as an amended FBAR.

Some taxpayers may qualify for the Streamlined Filing Compliance Procedures. Those procedures may apply when missed FBARs are connected to unreported foreign income or late tax returns and the conduct was non-willful. A Texas tax lawyer can review whether streamlined filing or another compliance route fits the facts.

Why is willfulness so important?

FBAR penalties can differ sharply depending on whether the conduct was non-willful or willful. Reckless conduct or willful blindness may support a finding of willfulness even when a taxpayer says there was no intent to break the law.

The filing history and tax returns may affect that analysis. Prior warnings can also be important. A taxpayer should not guess about willfulness or send an incomplete explanation without understanding how the available records may be viewed.

What should Dallas-area taxpayers do now?

Gather prior FBARs and foreign account records. Compare them with the related federal tax returns. Identify which years may be missing or incorrect, then seek advice promptly because delay can make the situation harder to address.

Coleman Jackson, P.C. helps international business owners and expats evaluate federal reporting concerns. The firm can explain available compliance choices based on the taxpayer’s filing history. To speak with a Texas tax lawyer, call Coleman Jackson, P.C. on (214) 599-0431 or fill out the online contact form.

This law blog is written by attorneys at Coleman Jackson, P.C., which is located at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206 for educational purposes; it does not create an attorney-client relationship between this law firm and its reader. You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

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