Money & Taxes
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Reporting your Nepal bank accounts (FBAR & FATCA)
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About
Who this is for
US persons (citizens, green-card holders, tax residents) who have bank accounts or financial assets back in Nepal — very common for our community.
The two filings (confirm current thresholds with a CPA)
- FBAR — FinCEN Form 114. Required if your foreign financial accounts together exceeded a threshold (commonly cited at US$10,000 at any point in the year — confirm current). It's filed electronically with FinCEN (the BSA e-file system) — NOT with your tax return.
- FATCA — IRS Form 8938. Filed with your tax return if your foreign financial assets exceed higher thresholds that vary by filing status + whether you live in the US or abroad — confirm which applies to you.
Key things people get wrong
- "It's my money in Nepal, why report it?" US reporting rules apply to US persons' foreign accounts regardless — it's a reporting requirement, separate from whether you owe tax.
- Reporting ≠ taxing. Disclosing the account doesn't by itself create a tax bill; but income the account earns (interest, etc.) may be taxable — a CPA sorts this out.
- FBAR is separate from your tax return (FinCEN, not the IRS form) — people miss it because it's not on the 1040.
- The thresholds aggregate across all your foreign accounts — small accounts can add up past the line.
Steps
- Confirm you're a US person for tax (citizen, green-card holder, or meet the residency test).
- Total your foreign accounts — use the highest balance each reached during the year, across all accounts.
- Check the FBAR threshold → if over, file FinCEN Form 114 electronically by the deadline.
- Check the FATCA (Form 8938) thresholds for your filing status/residence → if over, file it with your tax return.
- Report any income the accounts earned, and keep records.
- Use a CPA experienced with foreign reporting — this is exactly the case to get professional help.
Frequently asked
Do I have to report a small Nepali account?
Maybe — FBAR aggregates all foreign accounts against the threshold; check the total, not each account.
Will reporting make me owe tax?
Not by itself; income earned may be taxable. A CPA advises.
What if I didn't know and missed it?
There are catch-up procedures in some cases — talk to a tax professional promptly; don't keep ignoring it.
Is FBAR part of my tax return?
No — it's a separate FinCEN e-filing.



