2025 FBAR Conversion Rates | FBAR International Tax Lawyer

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The 2025 FBAR conversion rates are very important for your US international tax compliance. The reason for their importance is their relation to FBAR (FinCEN Form 114) and the IRS Form 8938. The 2025 FBAR and 2025 Form 8938 instructions both require that 2025 FBAR conversion rates be used to report the required highest balances of foreign financial assets on these forms (in the case of Form 8938, the 2025 FBAR conversion rates is the default choice, not an exclusive one). In other words, the 2025 FBAR conversion rates are used to translate foreign-currency highest balances into US dollars for the purposes of FBAR and Form 8938 compliance.

The U.S. Department of Treasury  already published the 2025 FBAR conversion rates online (they are called “Treasury’s Financial Management Service rates” or the “FMS rates”).

Since the 2025 FBAR conversion rates are highly important to US taxpayers, international tax lawyers and international tax accountants, Sherayzen Law Office provides the table below listing the official 2025 FBAR conversion rates (note that the readers still need to refer to the official website for any updates).

Country – Currency Foreign Currency to $1.00
AFGHANISTAN – AFGHANI65.9600
ALBANIA – LEK81.8500
ALGERIA – DINAR128.9210
ANGOLA – KWANZA912.2860
ANTIGUA – BARBUDA – E. CARIBBEAN DOLLAR2.7000
ARGENTINA – PESO1,480.0000
ARMENIA – DRAM380.0000
AUSTRALIA – DOLLAR1.4950
AUSTRIA – EURO0.8510
AZERBAIJAN – MANAT1.7000
BAHAMAS – DOLLAR1.0000
BAHRAIN – DINAR0.3770
BANGLADESH – TAKA123.0000
BARBADOS – DOLLAR2.0200
BELARUS – NEW RUBLEUNAVAILABLE*
BELGIUM – EURO0.8510
BELIZE – DOLLAR2.0000
BENIN – CFA FRANC553.7500
BERMUDA – DOLLAR1.0000
BOLIVIA – BOLIVIANO6.8500
BOSNIA – MARKA1.6640
BOTSWANA – PULA12.1360
BRAZIL – REAL5.4770
BRUNEI – DOLLAR1.2850
BULGARIA – LEV NEW1.6640
BURKINA FASO – CFA FRANC553.7500
BURUNDI – FRANC3,000.0000
CAMBODIA – RIEL4,001.0000
CAMEROON – CFA FRANC556.4400
CANADA – DOLLAR1.3690
CAPE VERDE – ESCUDO93.8100
CAYMAN ISLANDS – DOLLAR0.8200
CENTRAL AFRICAN REPUBLIC – CFA FRANC556.4400
CHAD – CFA FRANC556.4400
CHILE – PESO900.3500
CHINA – RENMINBI6.9980
COLOMBIA – PESO3,773.6200
COMOROS – FRANC418.2400
CONGO – CFA FRANC556.4400
COSTA RICA – COLON493.3600
COTE D’IVOIRE – CFA FRANC553.7500
CROATIA – EURO0.8510
CUBA – Chavito1.0000
CUBA – PESO24.0000
CURACAO – CARIBBEAN GUILDER1.7800
CYPRUS – EURO0.8510
CZECH REPUBLIC – KORUNA20.1010
DEM. REP. OF CONGO – CONGOLESE FRANC2,215.0000
DENMARK – KRONE6.3550
DJIBOUTI – FRANC177.0000
DOMINICAN REPUBLIC – PESO62.7600
ECUADOR – DOLARES1.0000
EGYPT – POUND47.6000
EL SALVADOR – DOLLAR1.0000
EQUATORIAL GUINEA – CFA FRANC556.4400
ERITREA – NAKFA15.0000
ESTONIA – EURO0.8510
ESWATINI – LILANGENI16.5460
ETHIOPIA – BIRR154.6640
EURO ZONE – EURO0.8510
FIJI – DOLLAR2.2300
FINLAND – EURO0.8510
FRANCE – EURO0.8510
GABON – CFA FRANC556.4400
GAMBIA – DALASI72.0000
GEORGIA – LARI2.6650
GERMANY – EURO0.8510
GHANA – CEDI10.4000
GREECE – EURO0.8510
GRENADA – EAST CARIBBEAN DOLLAR2.7000
GUATEMALA – QUETZAL7.6600
GUINEA BISSAU – CFA FRANC553.7500
GUINEA – FRANC8,717.0000
GUYANA – DOLLAR215.0000
HAITI – GOURDE130.5500
HONDURAS – LEMPIRA26.3260
HONG KONG – DOLLAR7.7840
HUNGARY – FORINT327.2200
ICELAND – KRONA125.1100
INDIA – RUPEE89.8540
INDONESIA – RUPIAH16,649.9900
IRAN – RIAL42,000.0000
IRAQ – DINAR1,309.5000
IRELAND – EURO0.8510
ISRAEL – SHEKEL3.1910
ITALY – EURO0.8510
JAMAICA – DOLLAR159.0000
JAPAN – YEN156.6100
JORDAN – DINAR0.7080
KAZAKHSTAN – TENGE506.2800
KENYA – SHILLING128.9000
KOREA – WON1,443.7500
KOSOVO – EURO0.8510
KUWAIT – DINAR0.3080
KYRGYZSTAN – SOM87.4120
LAOS – KIP21,503.0000
LATVIA – EURO0.8510
LEBANON – POUND89,500.0000
LESOTHO – MALOTI16.5460
LIBERIA – DOLLAR177.0000
LIBYA – DINAR5.4020
LITHUANIA – EURO0.8510
LUXEMBOURG – EURO0.8510
MADAGASCAR – ARIARY4,470.0000
MALAWI – KWACHA1,751.0000
MALAYSIA – RINGGIT4.0560
MALDIVES – RUFIYAA15.4200
MALI – CFA FRANC553.7500
MALTA – EURO0.8510
MARSHALL ISLANDS – DOLLAR1.0000
MAURITANIA – OUGUIYA39.7990
MAURITIUS – RUPEE46.1000
MEXICO – PESO17.9560
MICRONESIA – DOLLAR1.0000
MOLDOVA – LEU16.6900
MONGOLIA – TUGRIK3,557.0000
MONTENEGRO – EURO0.8510
MOROCCO – DIRHAM9.1010
MOZAMBIQUE – METICAL 63.2700
MYANMAR – KYAT3,658.0000
NAMIBIA – DOLLAR16.5460
NEPAL – RUPEE143.7900
NETHERLANDS – EURO0.8510
NEW ZEALAND – DOLLAR1.7330
NICARAGUA – CORDOBA36.6000
NIGER – CFA FRANC553.7500
NIGERIA – NAIRA1,450.0000
NORWAY – KRONE10.0720
OMAN – RIAL0.3850
PAKISTAN – RUPEE279.8000
PALAU – DOLLAR1.0000
PANAMA – DOLARES1.0000
PAPUA NEW GUINEA – KINA4.1240
PARAGUAY – GUARANI6,554.6100
PERU – SOL3.3620
PHILIPPINES – PESO58.9110
POLAND – ZLOTY3.5900
PORTUGAL – EURO0.8510
QATAR – RIYAL3.6400
REP. OF N MACEDONIA – DENAR52.1600
ROMANIA – NEW LEU4.3340
RUSSIA – RUBLE81.9960
RWANDA – FRANC1,450.0000
SAO TOME & PRINCIPE – NEW DOBRAS20.8420
SAUDI ARABIA – RIYAL3.7500
SENEGAL – CFA FRANC553.7500
SERBIA – DINAR99.7100
SEYCHELLES – RUPEE13.8130
SIERRA LEONE – LEONE23.7000
SINGAPORE – DOLLAR1.2850
SLOVAK REPUBLIC – EURO0.8510
SLOVENIA – EURO0.8510
SOLOMON ISLANDS – DOLLAR7.9050
SOMALI – SHILLING567.0000
SOUTH AFRICA – RAND16.5460
SOUTH SUDAN – SUDANESE POUND4,600.0000
SPAIN – EURO0.8510
SRI LANKA – RUPEE309.4000
ST LUCIA – E CARIBBEAN DOLLAR2.7000
SUDAN – SUDANESE POUND2,400.0000
SURINAME – GUILDER37.8070
SWEDEN – KRONA9.1970
SWITZERLAND – FRANC0.7920
SYRIA – POUND11,000.0000
TAIWAN – DOLLAR31.3240
TAJIKISTAN – SOMONI9.2000
TANZANIA – SHILLING2,440.0000
THAILAND – BAHT31.6600
TIMOR – LESTE DILI1.0000
TOGO – CFA FRANC553.7500
TONGA – PA’ANGA2.3540
TRINIDAD & TOBAGO – DOLLAR6.7680
TUNISIA – DINAR2.8670
TURKEY – NEW LIRA42.9510
TURKMENISTAN – NEW MANAT3.4910
UGANDA – SHILLING3,615.0000
UKRAINE – HRYVNIA42.1950
UNITED ARAB EMIRATES – DIRHAM3.6720
UNITED KINGDOM – POUND STERLING0.7430
URUGUAY – PESO39.1400
UZBEKISTAN – SOM11,999.4100
VANUATU – VATU119.1300
VENEZUELA – BOLIVAR SOBERANO300.6180
VENEZUELA – FUERTE (OLD)248,832.0000
VIETNAM – DONG26,295.0000
WESTERN SAMOA – TALA2.7080
YEMEN – RIAL528.0000
ZAMBIA – NEW KWACHA22.0000
ZIMBABWE – GOLD25.0710

*Note #1: As of the time of this article, the Department of Treasury still has not published the FBAR rate for Belarus. Please, consult the Department of the Treasury for clarification.

2026 Form 8938 Threshold | US International Tax Lawyers

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US taxpayers must file Form 8938 with their US tax returns if they hold foreign financial assets with an aggregate value exceeding a relevant balance threshold. This article discusses the 2026 Form 8938 threshold limits.

2026 Form 8938 Threshold: Form 8938 Background

Form 8938 burst into the US international compliance scene in 2011 as a result of the famous Foreign Accounts Tax Compliance Act (FATCA). FATCA was enacted as part of the Hiring Incentives to Restore Employment Act of 2010 (“HIRE Act” or “Act”) which was signed into law by President Obama in 2020.

FATCA revolutionized international tax compliance of the world by forcing foreign banks to report their US-held accounts to the IRS. In essence, it created the third-party verification of foreign accounts that FBAR has always lacked. This third-party verification was supported on the other side by creation of a new requirement to report foreign assets by US taxpayers as part of their US tax returns – Form 8938.

Form 8938’s scope of disclosure is very broad. It generally includes two types of “specified foreign financial assets”: (a) any financial account (also defined very broadly) maintained by a foreign financial institution (again defined broadly); and (b) other specified foreign financial assets not held in an account maintained by a foreign institution.  Other Specified Foreign Financial Assets is a term with a reach far and beyond any other US international tax form, making Form 8938 a unique “catch-all” international tax reporting requirement.

2026 Form 8938 Threshold: Form 8938 is a Dangerous Form

The huge scope of Form 8938 presents a grave danger to US taxpayers, because US Congress armed the form with a wide range of penalties, including a $10,000 failure-to-file fee.  For these reasons, it is highly important to understand when a particular situation triggers the Form 8938 filing requirement. One of the most important filing criteria is the subject of this article — the 2026 Form 8938 filing threshold limits.

2026 Form 8938 Threshold: Filing Threshold Factors

When considering the Form 8938 threshold requirements, there are two most important factors that influence which filing threshold will apply in a particular situation. First, the filing status of the taxpayer(s): married filing jointly, married filing separately, single, et cetera.

The second factor is whether the taxpayer lives in the United States or lives abroad. 

2026 Form 8938 Threshold: Legal Test for Living Abroad

The IRS will agree that a taxpayer lives abroad if he meets one of the two “presence abroad” tests.

The first presence abroad test is satisfied if the taxpayer is a US citizen who has been a bona fide resident of a foreign country or countries for an uninterrupted period of an entire tax year.

The second presence abroad test is satisfied if the taxpayer is a US citizen or resident who is present in a foreign country or countries at least 330 full days during any period of twelve consecutive months in the relevant tax year.

Of course, these tests are almost exact replicas of the test for Foreign Earned Income Exclusion.

2026 Form 8938 Threshold: Taxpayers Living in the United States

Let’s first discuss the Form 8938 filing thresholds for taxpayers who live in the United States category by category:

Unmarried Taxpayers Living in the United States: the taxpayer is required to file Form 8938  if the total value of his specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during that tax year.

Married Taxpayers Filing a Joint Income Tax Return and Living in the United States: if the taxpayer is married and files joint income tax return with his spouse, Form 8938 must be filed if the spouses’ specified foreign financial assets are either more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the tax year.

Married Taxpayers Filing Separate Income Tax Returns and Living in the United States: if the taxpayer is married and lives in the United States, but files a separate income tax return from his spouse, then the reporting threshold is satisfied if the total value of his specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. Therefore, this category is very similar to that of the unmarried taxpayer who resides in the United States.

2026 Form 8938 Threshold: Taxpayers Living Abroad

Here are the Form 8938 filing thresholds for taxpayers who live abroad:

Married Taxpayers Filing a Joint Income Tax Return and Living Abroad: if the taxpayer lives abroad (as described above) and files a joint tax return with his spouse, then the reporting threshold is satisfied if the value of all specified foreign financial assets that the spouses own is either more than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year.

Taxpayers Filing Any Return Other Than Joint Tax Return and Living Abroad: if that taxpayer lives abroad and does not file a joint income tax return (instead he files a different type of tax return such as married filing separately, head of household or unmarried), then the reporting threshold is satisfied if the value of all specified foreign financial assets is either more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the tax year.

2026 Form 8938 Threshold: Specified Domestic Entity

Specified Domestic Entities are also required to file Form 8938. The filing threshold for a specified domestic entity is satisfied if the total value of such an entity’s specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

Contact Sherayzen Law Office For Help With IRS Form 8938

The reporting requirements under Form 8938 can be very complex. Moreover, Form 8938 noncompliance often occurs in conjunction with noncompliance with FBAR and other reporting requirements (such as Forms 5471, 8621, 8865 et cetera).  In such cases, filing of a late Form 8938 is often should be done through an IRS offshore voluntary disclosure option in order to reduce additional IRS tax penalties.

Sherayzen Law Office is an international tax law firm that specializes in US international tax compliance, including Form 8938. We are highly experienced with Form 8938 issues, including offshore voluntary disclosures involving Form 8938.  We can help you!

Contact us today to schedule your confidential consultation!

2026 Foreign Earned Income Exclusion | International Tax Lawyer & Attorney

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The Foreign Earned Income Exclusion (“FEIE”) is a valuable tax strategy available to US tax residents who live and work abroad. It allows US citizens to exclude a certain amount of foreign earned income from their US taxable income. The IRS adjusts the precise amount every year.  In this article, I will discuss the 2026 Foreign Earned Income Exclusion.

2026 Foreign Earned Income Exclusion: Background Information

FEIE was born out of the fact that the US tax system is unique and taxes its citizens and even more broadly its residents on their worldwide income irrespective of where they reside. In many countries, such taxpayers are subject to local foreign income taxes on the same income. In order to alleviate the potential burden of double taxation, the US Congress enacted Section 911 of the Internal Revenue Code. This section codified FEIE.

Section 911 allows qualifying individuals to exclude a specified amount of foreign earned income from US taxable income. The IRS adjusts this amount every single year.  A taxpayer must use Form 2555 to claim FEIE.

2026 Foreign Earned Income Exclusion: Eligibility

In order to claim FEIE, a taxpayer must meet certain requirements set forth in IRC §911. I will provide only a brief outline of these requirements in this article. They are discussed in more detail in other articles on our website.

First of all, FEIE applies only to foreign earned income, not passive income and not US-source income.

Second, the taxpayer must maintain his tax home in a foreign country. “Tax Home” is a term of art that has its specific meaning.

Third, you must pass either the physical presence test or the bona fide residence test.

2026 Foreign Earned Income Exclusion: Additional Considerations

While FEIE brings a huge benefit of income exclusion, it often is not the best option for US taxpayers who reside overseas. Let’s focus on the four most important considerations.

First, FEIE limits and in some cases completely eliminates the ability to take Foreign Tax Credit (“FTC”). If you use FEIE, you cannot use the FTC to reduce US taxes on income already excluded under the FEIE.  The problem arises when FTC is actually higher than the US tax.  In this case, you may be losing a very important tax strategy to reduce your US taxes not only in the current year, but also in the future.

Second, FEIE may result in ineligibility to take other tax credits normally available to a taxpayer.

Third, despite the income tax exclusion, your tax bracket will still be the same as if you were taxed on the whole amount (i.e. as if you had not claimed the foreign earned income exclusion).

Finally, while not a tax consideration, usage of FEIE by US permanent residents may result in the abandonment of their green card. In other words, FEIE may present a huge risk to the immigration goals of a taxpayer.

2026 Foreign Earned Income Exclusion: Adjustment for 2026

On October 9, 2025, the IRS announced that the foreign earned income exclusion amount under §911(b)(2)(D)(i) is going to be $132,900 for the tax year 2026. This is up from $130,000 in the tax year 2025.

Contact Sherayzen Law Office for Professional Help with Foreign Earned Income Exclusion

The Foreign Earned Income Exclusion is a vital tax tool for US taxpayers working abroad, but it must be used cautiously and after careful consideration of all circumstances.  Hence, if you are a US taxpayer who lives abroad or you are planning to accept a job overseas, you need to secure the help of Sherayzen Law Office, a premier firm in US international tax compliance. We can help you navigate the complexities of FEIE, determine your eligibility for it and build a tax strategy to help you maximize the advantages offered by the Internal Revenue Code. Contact Us Today to Schedule Your Confidential Consultation!

First Quarter 2026 IRS Interest Rates on Overpayment & Underpayment of Tax

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On November 13, 2025, the IRS announced that the First Quarter 2026 IRS interest rates on overpayment and underpayment of tax will not change from the Fourth Quarter of 2025.

This means that, the First Quarter 2026 IRS interest rates will be as follows:

seven (7) percent for overpayments (seven (7) percent in the case of a corporation);
seven (7) percent for underpayments;
nine (9) percent for large corporate underpayments; and
four and a half (4.5) percent for the portion of corporate overpayment exceeding $10,000.

How the IRS Calculated First Quarter 2026 IRS Interest Rates

The IRS calculates the IRS interest rates based on specific tax provisions. We begin with the Internal Revenue Code (“IRC”) §6621, which establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), the overpayment rate is the sum of the federal short-term rate plus 3 percentage points for individuals and 2 percentage points in cases of a corporation. There is an exception to this rule: with respect to a corporate overpayment of tax exceeding $10,000 for a taxable period of time, the rate is the sum of the federal short-term rate plus one-half of a percentage point.

Additionally, under §6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points. Similarly to overpayments, there is an exception for a large corporate underpayment: in such cases, §6621(c) requires the underpayment rate to be the sum of the relevant federal short-term rate plus 5 percentage points. Also, the readers should see §6621(c) and §301.6621-3 of the Regulations on Procedure and Administration for the definition of a large corporate underpayment and for the rules for determining the applicable date.

Finally, pursuant to the IRC §6621(b)(1), the IRS computed the First Quarter 2026 IRS interest rates based on federal short-term rates in October of 2025.

Importance of the First Quarter 2026 IRS Interest Rates

The IRS interest rates are relevant for a great variety of purposes. Let’s highlight three of its most important uses. Firstly, these rates will determine the interest a taxpayer will get on any IRS refunds.

Second, the IRS and the taxpayers use these rates to calculate the interest on any additional US tax liability on amended or audited tax returns. This also applies to the amended (and, in case of SFOP, original) tax returns that the taxpayers submit pursuant to Streamlined Domestic Offshore Procedures and Streamlined Foreign Offshore Procedures.

Finally, the First Quarter 2026 IRS interest rates will be used to calculate PFIC interest on any relevant §1291 PFIC tax. This PFIC interest will be reported on the relevant Form 8621 and ultimately Form 1040.

We at Sherayzen Law Office constantly deal with the IRS interest rates on overpayments and underpayments of tax. This is why we closely follow any changes in these IRS interest rates.

Fourth Quarter 2025 IRS Interest Rates on Overpayment & Underpayment of Tax

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On August 25, 2025, the IRS announced that the Fourth Quarter 2025 IRS interest rates on overpayment and underpayment of tax will remain the same as in the Fourth Quarter of 2025.

This means that, the Fourth Quarter 2025 IRS interest rates will be as follows:

seven (7) percent for overpayments (seven (7) percent in the case of a corporation);

seven (7) percent for underpayments;

nine (9) percent for large corporate underpayments; and

five (5) percent for the portion of corporate overpayment exceeding $10,000.

How the IRS Calculated Fourth Quarter 2025 IRS Interest Rates

The IRS calculates the IRS interest rates based on specific tax provisions. We begin with the Internal Revenue Code (“IRC”) §6621, which establishes the IRS interest rates on overpayments and underpayments of tax. Under §6621(a)(1), the overpayment rate is the sum of the federal short-term rate plus 3 percentage points for individuals and 2 percentage points in cases of a corporation. There is an exception to this rule: with respect to a corporate overpayment of tax exceeding $10,000 for a taxable period of time, the rate is the sum of the federal short-term rate plus one-half of a percentage point.

Additionally, under §6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points. Similarly to overpayments, there is an exception for a large corporate underpayment: in such cases, §6621(c) requires the underpayment rate to be the sum of the relevant federal short-term rate plus 5 percentage points. Also, the readers should see §6621(c) and §301.6621-3 of the Regulations on Procedure and Administration for the definition of a large corporate underpayment and for the rules for determining the applicable date.

Finally, pursuant to the IRC §6621(b)(1), the IRS computed the Fourth Quarter 2025 IRS interest rates based on federal short-term rates in July of 2025.

Importance of the Fourth Quarter 2025 IRS Interest Rates

The IRS interest rates are relevant for a great variety of purposes. Let’s highlight three of its most important uses. Firstly, these rates will determine the interest a taxpayer will get on any IRS refunds.

Second, the IRS and the taxpayers use these rates to calculate the interest on any additional US tax liability on amended or audited tax returns. This also applies to the amended (and, in case of SFOP, original) tax returns that the taxpayers submit pursuant to Streamlined Domestic Offshore Procedures and Streamlined Foreign Offshore Procedures.

Finally, the Fourth Quarter 2025 IRS interest rates will be used to calculate PFIC interest on any relevant §1291 PFIC tax. This PFIC interest will be reported on the relevant Form 8621 and ultimately Form 1040.

We at Sherayzen Law Office constantly deal with the IRS interest rates on overpayments and underpayments of tax. This is why we closely follow any changes in these IRS interest rates, including the Fourth Quarter 2025 IRS interest rates.