There are both civil and criminal penalties for failure to file a Foreign Bank Account Report 90-22.1 (FBAR).
Criminal Penalties:
FAQ #6: What are some of the criminal charges I might face if I don’t come in under OVDP and the IRS examines me?
Possible criminal charges related to tax returns include tax evasion (26 U.S.C. § 7201), filing a false return (26 U.S.C. § 7206(1)) and failure to file an income tax return (26 U.S.C. § 7203). Willfully failing to file an FBAR and willfully filing a false FBAR are both violations that are subject to criminal penalties under 31 U.S.C. § 5322.
· A person convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000.
· Filing a false return subjects a person to a prison term of up to three years and a fine of up to $250,000.
· A person who fails to file a tax return is subject to a prison term of up to one year and a fine of up to $100,000.
· Failing to file an FBAR subjects a person to a prison term of up to ten years and criminal penalties of up to $500,000.