What Does the End of the Delinquent FBAR Submission Procedures Mean?
For U.S. taxpayers who are out of compliance for failing to report their foreign accounts, assets, and investments on the FBAR (FinCEN Form 114), there are various FBAR amnesty programs available to assist them with getting into compliance. While the streamlined procedures are the most popular option for taxpayers who are non-willful, another ‘program’ that some taxpayers qualified for was the Delinquent FBAR Submission Procedures (DFSP), but as of July 2026, it appears the IRS terminated these procedures. The question then becomes whether the termination of the delinquent FBAR submission procedure signals something worse, or is it just that the program was outdated?
First, Delinquent FBAR Submission Procedures (DFSP) vs. Delinquent FBAR Filings
It is very important to distinguish between the specific procedure known as the Delinquent FBAR Submission Procedures and just filing delinquent FBARs. The fact that the IRS terminated the Delinquent FBAR Submission Procedures just means that those procedures are no longer an avenue for taxpayers who are out of compliance to submit their late FBARs. It has no bearing on the fact that taxpayers are still required to submit delinquent FBARs through one of the other amnesty programs if they have missed prior FBARs.
What Does Ending DFSP Signal?
Whether the end of the delinquent F bar submission procedures will have a domino effect on other non-willful offshore disclosure programs is yet to be seen. These days, most taxpayers do not qualify for the Delinquent FBAR Submission Procedures anyway because they had other international reporting forms they were required to file or missed income on their original returns. But it is also important to note that the streamlined procedures were originally developed as a standalone program to serve as a band-Aid for taxpayers to get caught up with their FBAR and FATCA. Likewise, the IRS voluntary disclosure program is currently under construction, and there is the potential that the IRS may combine both non-willful and willful submissions into one voluntary disclosure program.
Thus, taxpayers who are considering making a disclosure should consider these options in conjunction with timing the Disclosure.
Late Filing Penalties May Be Reduced or Avoided
For Taxpayers who did not timely file their FBAR and/or other international information-related reporting forms, the IRS has developed many different offshore amnesty programs to assist Taxpayers with safely getting into compliance. These programs may reduce or even eliminate international reporting penalties.
Current Year vs. Prior Year Non-Compliance
Once a Taxpayer missed the tax and reporting (such as FBAR and FATCA) requirements for prior years, they will want to be careful before submitting their information to the IRS in the current year. That is because they may risk making a quiet disclosure if they just begin filing forward in the current year and/or mass filing previous year forms without doing so under one of the approved IRS offshore submission procedures. Before filing prior untimely foreign reporting forms, Taxpayers should consider speaking with a Board-Certified Tax Law Specialist who specializes exclusively in these types of offshore disclosure matters.
Avoid False Offshore Disclosure Submissions (Willful vs Non-Willful)
In recent years, the IRS has increased the level of scrutiny for certain streamlined procedure submissions. When a person is non-willful, they have an excellent chance of making a successful submission to Streamlined Procedures. If they are willful, they would submit to the IRS Voluntary Disclosure Program instead. But, if a willful Taxpayer submits an intentionally false narrative under the Streamlined Procedures (and gets caught), they may become subject to significant fines and penalties.
Need Help Finding an Experienced Offshore Tax Attorney?
Hiring an experienced international tax attorney to represent you for unreported foreign and offshore account reporting can be overwhelming for Taxpayers trying to sift through the false information and nonsense they find in online research. Only a handful of attorneys worldwide are Board-Certified Tax Specialists who specialize exclusively in offshore disclosure and international tax amnesty reporting.
*This resource may help Taxpayers seeking to hire offshore tax counsel: How to Hire an Offshore Disclosure Lawyer.
Golding & Golding: About Our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, specifically IRS offshore disclosure.
Contact our firm today for assistance.