Retired Expats Facing $3.6 Million in FBAR Penalties - Here's What They Did Wrong

Summary

Mike from Savvy Nomad discusses the critical FBAR (Foreign Bank Account Report) requirement for US expats, highlighting a New Zealand retired couple facing a $3.6 million penalty for failing to report foreign bank accounts. The key point is that any American with over $10,000 in combined non-US financial accounts at any point during a year must file an FBAR, with potential penalties of over $16,000 per violation per year, even if no actual taxes are owed. The practical takeaway is for expats to carefully track their foreign bank account balances and ensure timely, accurate FBAR reporting to avoid potentially devastating financial penalties.