DOJ and IRS FBAR Investigations Can Lead to Substantial Penalties

The DOJ and IRS are actively conducting FBAR investigations in 2026. These investigations pose substantial risks for targeted taxpayers—including fines and federal prison time. For noncompliant taxpayers who are not yet under federal scrutiny, submitting an IRS streamlined disclosure filing or a voluntary disclosure could be critical to avoiding unnecessary consequences.

Federal law requires U.S. taxpayers to disclose all qualifying foreign bank accounts annually. This requirement is intended to help ensure that taxpayers pay what they owe—and, as a result, the DOJ and IRS take compliance very seriously. DOJ and IRS FBAR investigations are becoming increasingly common, with targeted taxpayers facing criminal prosecution in many cases. Learn more from Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

Are the DOJ and IRS Targeting FBAR Noncompliance in 2026?

The DOJ and IRS have enhanced their efforts to target FBAR noncompliance in 2026. We have seen more investigations than usual in this area, and many are leading to federal criminal charges.

While inadvertent FBAR noncompliance is not a criminal offense, the DOJ can pursue criminal charges for suspected willful nondisclosure of foreign bank accounts. While civil and criminal enforcement actions both pose significant risks, the risks of facing criminal enforcement can be far more severe.

What Are the Risks of Facing a DOJ or IRS FBAR Investigation?

In civil cases, FBAR noncompliance can trigger substantial fines for both individual and corporate taxpayers. These fines can be up to six times the value of a taxpayer’s undisclosed foreign bank accounts. In criminal cases, federal prison time is also on the table.

Notably, while the FBAR filing requirement exists under the Bank Secrecy Act (BSA), federal prosecutors can also pursue criminal charges under other federal statutes in these cases. Criminal charges under the Internal Revenue Code (IRC), Foreign Account Tax Compliance Act (FATCA), and other pertinent federal statutes also carry fines and prison time—and aggregate sentences can potentially amount to millions of dollars in fines and decades of federal imprisonment.

How Thorn Law Group Can Help

At Thorn Law Group, we represent individual and corporate taxpayers in all FBAR-related matters. If you are behind on your FBAR filing obligations and are not yet facing federal scrutiny, we can help you submit an IRS streamlined disclosure or a voluntary disclosure to come into compliance. If you are being targeted in a DOJ or IRS FBAR investigation, we can work to steer the investigation toward a favorable resolution that avoids unnecessary consequences.

Discuss Your Options with Virginia Tax Lawyer Kevin E. Thorn

To learn more about how we help our clients avoid unnecessary consequences for foreign bank account disclosure noncompliance, contact us today. Call us at 703-752-3752 or tell us how we can get in touch online to schedule a confidential consultation with Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.