Disclosure of Offshore Accounts: What U.S. Taxpayers Need to Know in 2025

While the One Big Beautiful Bill (OBBB) that President Trump signed into law on July 4, 2025, includes several important changes for U.S. taxpayers, one area where the OBBB does not impact taxpayers’ obligations is in relation to the disclosure of offshore accounts. Taxpayers who have qualifying offshore accounts remain obligated to disclose these accounts to the IRS, FinCEN or both—and failing to do so still carries steep penalties. Boston offshore tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

U.S. Taxpayers’ Obligation to Disclose Offshore Accounts in 2025

Two federal statutes impose disclosure obligations for taxpayers with offshore accounts—and these obligations remain unaffected by the OBBB.

The first of these statutes is the Foreign Account Tax Compliance Act (FATCA). Under FATCA, taxpayers living in Massachusetts have an obligation to disclose their offshore accounts if they meet the following thresholds:

• Individual Taxpayers – Total value of offshore accounts (and other “foreign financial assets”) exceeds $50,000 on the last day of the tax year or $75,000 at any time during the year.
• Married Taxpayers Filing Jointly – Total value of offshore accounts (and other “foreign financial assets”) exceeds $100,000 on the last day of the tax year or $150,000 at any time during the year.

Taxpayers who are required to comply with FATCA must file Form 8938 with the IRS when they file their annual tax returns.

The second of these statutes is the Bank Secrecy Act (BSA). Under the BSA, all taxpayers (those living in the U.S. and abroad) must report their offshore accounts if their aggregate value exceeds $10,000 at any time during the calendar year. Taxpayers who are required to comply with the BSA must file a Report of Foreign Bank and Financial Accounts (FBAR) with FinCEN. FBARs are technically due on April 15, but taxpayers receive an automatic six-month extension.

What if You Didn’t File Form 8938 or an FBAR in 2025?

With this in mind, what if you have qualifying offshore accounts and you haven’t filed Form 8938 or an FBAR in 2025? If you are required to file an FBAR, you still have time to do so under the automatic extension. However, if you failed to file Form 8938 with your annual tax return, you will need to make an informed decision about how best to proceed.

In this scenario, submitting a streamlined filing or an IRS voluntary disclosure may be necessary. However, both of these are options under different scenarios. To ensure that you make an informed decision—and to ensure that you do so before the IRS initiates an audit or investigation—you should consult with an experienced Boston offshore tax lawyer promptly.

Request a Confidential Consultation with Boston Offshore Tax Lawyer Kevin E. Thorn

If you need to know more about your obligation to report your offshore accounts to the IRS or FinCEN, we invite you to get in touch. To request a confidential consultation with Boston offshore tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 617-692-2989 or contact us confidentially online today.