FBAR Filing for Israeli-Americans

What You’re Probably Missing

If you are a U.S. taxpayer with Israeli financial accounts, FBAR may apply even when nothing feels like a traditional bank account. Israeli-Americans often miss Keren Hishtalmut, brokerage accounts, joint family accounts, inherited accounts, and accounts where they only have signing authority.

This article breaks down the FBAR blind spots Israeli-Americans most often miss, why the $10,000 threshold is broader than people expect, and what to consider if prior years were missed.

• Best for: Israeli-Americans, dual citizens, and U.S. residents with accounts in Israel.
• Common issue: the FBAR threshold is based on the combined maximum value of all foreign financial accounts.
• Next step: schedule a consultation before the IRS contacts you.

Shai runs a consulting business out of New Jersey. Been in the US fourteen years. Files his taxes every spring — pays his CPA, gets his refund, done. When he came to me last March, he had three years of returns and one question: “Do I need to file something called an FBAR?”

He did. He had for fourteen years. He hadn’t filed once.

We were specifically looking at his Keren Hishtalmut, a brokerage account at Meitav, and a joint savings account with his father in Netanya. None of them were bank accounts in his mind. All of them were foreign financial accounts under FinCEN’s rules.

Here’s what hits me every time I have this conversation: the problem isn’t that people are hiding assets. The problem is that the category “foreign financial account” is much wider than anyone ever told you.

The Account Gap

I call this The Account Gap — the distance between what you think of as a “bank account” and what FinCEN Form 114 actually requires you to report.

“Foreign bank account” is what people hear. “Foreign financial account” is what the law says.

That gap is where most Israeli-American tax exposure lives. And it’s not small.

“But My Israeli Accountant Handles All of That”

This is the one I hear most often, and I get it completely. You have professionals on both sides of the ocean. The US side handles your US stuff, the Israeli side handles your Israeli stuff.

Here’s where that breaks down: FBAR is a US disclosure requirement, not an Israeli tax matter. Your Israeli accountant isn’t thinking about FinCEN — and frankly, why the hell would they? Their job is the Israeli Tax Authority. These are two entirely different reporting systems, and the gap between them is exactly where the IRS looks first.

Your US CPA may not be asking the right questions either. Not because they’re bad at their job — because they don’t know what you have in Israel.

You Already Know Something Is Off

You’ve probably felt it at some point. Maybe someone at your shul mentioned FBAR. Maybe your accountant asked once and never followed up. Maybe you saw something online and assumed it didn’t apply to you because you already “file everything.”

That instinct that something was incomplete? It was right.

What You’re Actually Missing

These are the accounts most Israeli-Americans don’t realize are reportable:

1. Keren Hishtalmut — Yes. Most people don’t list it because it feels like a pension, not a bank account. FinCEN doesn’t care how you feel about it.
2. Israeli brokerage accounts — Meitav, IBI, Discount Brokerage, any Israeli securities firm. If you hold an account there, it counts.
3. Joint accounts with Israeli family — Your name on your parents’ account in Israel — even if you never touch it — is a potential reporting obligation. Same with Power of Attorney. Signatory authority counts.
4. Inherited accounts — An account sitting in Israeli probate after a parent passed. The moment you have ownership or signatory authority, the clock starts.
5. The $10,000 threshold is aggregate — This one gets people every time. It’s not $10,000 per account. It’s $10,000 combined across all foreign accounts at any point during the year. Your Israeli checking and your Hishtalmut might each be under $10,000 individually. Together, you’re filing.

What the Numbers Actually Say

In 2023, the Supreme Court ruled in Bittner v. United States that non-willful FBAR penalties are assessed per form, not per account — a real win for taxpayers who made honest mistakes. But the ruling also confirmed something important: this is actively enforced. The IRS collected over $5.6 billion in FBAR penalties and settlements between 2007 and 2021. Non-willful isn’t safe. It’s just cheaper.

There’s a Way Out — But Only If You Go First

If you haven’t been filing and you should have, the IRS Streamlined Filing Compliance Procedures program exists specifically for non-willful non-filers. It’s not a free pass. But it is far better than getting caught after the fact. If you already received a notice or are worried the issue may be bigger than a missed form, review our IRS problem resolution services before responding on your own.

The program closes the moment the IRS opens an examination. You can’t use it retroactively. First-mover advantage is the only advantage here.

The Question Worth Asking Today

Look at your Israeli accounts right now — not the ones already on your FBAR. The ones you’ve never listed. Is the Hishtalmut there? The brokerage? The joint account with your parents? For broader tax filing support, see our tax preparation services for Israeli-Americans.

If you’re not sure, that’s already an answer.

L’hitraot,
Alad

Alad Adar is an Enrolled Agent and owner of A Plus Tax & Accounting, LLC — serving Israeli-Americans, dual citizens, and immigrant business owners nationwide. Book a free consultation at aplustaxhelp.com.

PS — Tell me: which account type on this list surprised you most? I genuinely want to know which one people aren’t thinking about — drop it in the comments.

Ready to file your FBAR or get compliant?
Review our tax preparation services for Israeli-Americans or schedule a strategy consultation to discuss your specific situation.

FBAR Questions Israeli-Americans Ask Most

Does Keren Hishtalmut need to be reported on FBAR?

Often, yes. Keren Hishtalmut can be treated as a foreign financial account for FBAR purposes, even when it feels more like an Israeli savings or employment benefit account. The exact reporting depends on the account and your filing facts.

Is the FBAR threshold $10,000 per account?

No. The threshold is based on the combined maximum value of all foreign financial accounts at any point during the calendar year. Several smaller Israeli accounts can trigger FBAR together.

Do Israeli pension, investment, or joint accounts count?

They can. Israeli brokerage accounts, pension-like accounts, joint accounts, inherited accounts, and accounts where you only have signing authority may all need to be reviewed for FBAR.

What if I missed FBAR filings in prior years?

Do not guess or rush into a filing. The right option depends on whether the mistake was non-willful, which years were missed, and whether the IRS has already contacted you. Start by reviewing the facts with a tax professional who handles FBAR and IRS resolution work.

For a narrower look at one common account, read Does Keren Hishtalmut Need to Be Reported on FBAR?