CPA of Denver knowledge base

How the FBAR Aggregate Threshold Works

A practical explanation of why multiple foreign accounts are combined when determining whether an FBAR filing is required.

The FBAR threshold is based on the aggregate maximum value of all reportable foreign financial accounts. A taxpayer should review each account, determine its maximum value during the year, convert foreign currency using the applicable year-end exchange rate, and then test the combined amount. The filing analysis can differ from the reporting rules that apply on an income tax return.