DOJ and IRS FBAR Investigations Are On the Rise in 2026

DOJ and IRS FBAR investigations are on the rise. We have seen an increase in these investigations in 2026, with individual and corporate taxpayers facing substantial penalties in many cases. Along with fines of up to six times the value of a taxpayer’s undisclosed accounts, the DOJ can also pursue criminal penalties when warranted.

Under federal law, individual and corporate taxpayers who own foreign bank accounts are required to disclose them annually. Making this disclosure involves filing a Report of Foreign Bank and Financial Accounts (FBAR) with FinCEN (and possibly also filing Form 8938 with the IRS). The DOJ and IRS have been prioritizing FBAR investigations in 2026—and these investigations have led to substantial penalties in many cases. Learn more from Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

FBAR Investigations Focus on Disclosure Noncompliance

In their FBAR investigations, the DOJ and IRS are focusing on disclosure noncompliance. Federal law requires U.S. taxpayers to file an FBAR to disclose all foreign bank accounts with an aggregate value of $10,000 at any point during the relevant tax year. Since foreign banks have disclosure obligations as well, the DOJ and IRS often have easy access to information about which taxpayers have (and haven’t) met their foreign bank account disclosure obligations.

FBAR Investigations Pose Substantial Risks

For noncompliant taxpayers, DOJ and IRS FBAR investigations pose substantial risks. Under federal law, the consequences of failing to timely file an FBAR can include:

• Fines of up to six times the value of the taxpayer’s undisclosed accounts
• Federal prison time (for business owners and other individuals)

In many cases, taxpayers accused of FBAR noncompliance will also face penalties for failing to file IRS Form 8938. Taxpayers must file IRS Form 8938 to disclose their foreign financial assets (provided that the aggregate value of these assets exceeds the applicable threshold), and foreign financial assets include taxpayers’ offshore accounts.

How Thorn Law Group Can Help

We assist individual and corporate taxpayers with all aspects of foreign financial asset disclosure compliance. If you have failed to file (or your business has failed to file) an FBAR, you may be able to come into compliance by submitting either an IRS streamlined disclosure filing or an IRS voluntary disclosure. Our team can assess your options and take appropriate action on your behalf.

We also provide legal representation to individual and corporate taxpayers targeted in FBAR investigations. If it is too late to submit an IRS streamlined disclosure filing or an IRS voluntary disclosure, we can work to favorably resolve the government’s investigation without undue liability.

Request a Consultation with Boston Tax Lawyer Kevin E. Thorn

If you need more information about your options for avoiding steep penalties for FBAR noncompliance, we encourage you to contact us promptly. To request a confidential consultation with Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, call 617-692-2989 or tell us how we can reach you online now.