Yes, failing to properly file a complete and correct FBAR can result in a penalty. You may be subject to a civil penalty of up to $10,000 per nonwillful violation that is not due to reasonable cause. For willful violations, the penalty may be the greater of $100,000 or 50 percent of the balance in the account that is not correctly reported.

However, the IRS will not impose a penalty for the failure to file a late FBAR if you have properly reported all your foreign financial accounts on your tax return and have paid all tax on the income from those accounts, if you have not previously been contacted by the IRS. For more information, see the IRS website.