FATCA, FBAR & Brazilian Bank Accounts: US Citizen Reporting Obligations

Americans living in Brazil face overlapping international reporting obligations from two governments simultaneously. Brazil’s DCBE (Declaração de Capitais Brasileiros no Exterior) requires reporting foreign assets exceeding USD $1 million to the Central Bank by June 5 annually. The US FBAR (FinCEN Report 114) requires reporting foreign financial accounts with aggregate balances exceeding $10,000 at any point during the year, due April 15 (extended automatically to October 15). Miss either filing and you face penalties that dwarf the underlying tax — up to R$250,000 for DCBE and $100,000+ per violation for willful FBAR failure. Add FATCA Form 8938, Brazil’s CBE (Capitais Brasileiros no Exterior) obligations, and automatic information sharing between the IRS and Receita Federal under the US-Brazil Intergovernmental Agreement, and you have a compliance landscape where a single missed form can cost more than the assets it reports.

This guide maps both systems side by side — thresholds, deadlines, penalty structures, what each government already knows about your accounts, and the real-world scenarios where Americans in Brazil get caught — so you can comply with both without gaps or redundancy.

“The asymmetry between FBAR and DCBE penalties catches Americans in Brazil off guard. FBAR penalties are assessed per account, per year — a person with three unreported Brazilian accounts over three years faces potential non-willful penalties of $90,000, even if zero tax was owed.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

How Does the $10,000 FBAR Threshold Actually Work?

The FBAR threshold is one of the most misunderstood numbers in international tax compliance. Under 31 U.S.C. § 5314 and 31 C.F.R. § 1010.350, every US person (citizen, green card holder, or tax resident) who has a financial interest in or signature authority over one or more foreign financial accounts must file an FBAR if the aggregate value of all foreign accounts exceeded $10,000 at any point during the calendar year.

What “Aggregate” Means

You do not need $10,000 in a single account. The threshold is calculated across all foreign financial accounts combined. If you have:

• Banco do Brasil checking: peak balance R$25,000 (~$5,000)
• Nubank savings: peak balance R$18,000 (~$3,600)
• XP Investimentos brokerage: peak balance R$12,000 (~$2,400)

Your aggregate peak balance is approximately $11,000. FBAR is required — even though no single account exceeded $10,000.

What “At Any Point” Means

FBAR uses a high-water mark measurement. The $10,000 threshold is evaluated based on the maximum balance each account held at any moment during the year — not the December 31 balance. This means:

• If you received a R$60,000 payment on March 15, spent it all by March 20, and your account ended the year at R$2,000 — the FBAR balance for that account is R$60,000
• If you transferred money between two Brazilian accounts, the balance may have briefly existed in both — count the peak in each account separately
• Currency conversion uses the Treasury Department’s year-end exchange rate, not the rate on the day of the peak balance

What Counts as a “Foreign Financial Account”

For FBAR purposes, a “foreign financial account” held in Brazil includes:

• Bank accounts — checking (conta corrente), savings (poupança), CDB, and other deposit accounts at any Brazilian bank (Itaú, Bradesco, Banco do Brasil, Nubank, Inter, C6, etc.)
• Brokerage accounts — accounts at Brazilian brokerages (XP, BTG Pactual, Clear, Rico, etc.) regardless of what assets they hold
• Investment funds — fundos de investimento where you have a direct ownership interest
• Digital wallets and prepaid cards — Nubank, PicPay, Mercado Pago, and similar fintech accounts with stored monetary value
• Life insurance and pension products with cash value — PGBL and VGBL accounts at Brazilian insurers (Brasilprev, SulAmérica, etc.)
• Cryptocurrency accounts — accounts at centralized exchanges (Binance, Mercado Bitcoin) operating outside the US (under current FinCEN guidance)

Not included in FBAR: Direct ownership of Brazilian real property (but a bank account holding rental income from that property is included), direct ownership of precious metals or art, and purely domestic US retirement accounts (IRA, 401(k)).

“The most common FBAR mistake I see among Americans in Brazil is not counting their poupança account. Many clients assume savings accounts are too small to matter — but when aggregated with their checking, brokerage, and digital wallet accounts, they cross the $10,000 threshold without realizing it.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

What Is FATCA Form 8938 and How Does It Differ from FBAR?

FATCA (the Foreign Account Tax Compliance Act, enacted as part of the HIRE Act of 2010) created a parallel reporting obligation through Form 8938 (Statement of Specified Foreign Financial Assets). Many Americans assume Form 8938 and FBAR are redundant. They are not.

Critical point: Filing Form 8938 does not eliminate the FBAR requirement, and vice versa. Most American expats in Brazil must file BOTH. The thresholds, measurement dates, asset definitions, and filing destinations are all different. Missing one while filing the other is one of the most common compliance gaps.

Form 8938 Threshold for Expats

The thresholds for US taxpayers living abroad (those who meet the bona fide residence test or physical presence test under IRC § 911) are higher than for domestic filers:

For domestic filers (living in the US), the thresholds are lower: $50,000/$75,000 (single) and $100,000/$150,000 (joint). Americans who move between the US and Brazil during the year should verify which threshold applies based on their residency status for that tax year.

What Is the FBAR Penalty Structure?

FBAR penalties under 31 U.S.C. § 5321 are among the most severe in the US tax enforcement system because they are assessed per account, per year — creating exponential exposure for multi-year non-compliance.

Non-Willful Violations

• Penalty: Up to $10,000 per account, per year of non-filing
• “Non-willful” means: You did not know about the FBAR obligation, or you knew but the failure was due to negligence rather than intentional disregard
• Example: An American with 3 Brazilian accounts who failed to file FBAR for 3 years faces potential penalties of $90,000 (3 accounts × 3 years × $10,000)
• Mitigation: The IRS has discretion to reduce non-willful penalties and often does for first-time filers who self-correct through the Streamlined Procedures

Willful Violations

• Penalty: The greater of $100,000 or 50% of the account balance at the time of the violation — per account, per year
• “Willful” means: You knew about the FBAR obligation and chose not to file, or you acted with reckless disregard for the requirement
• Example: An American with a R$1,000,000 (~$200,000) Brazilian account who willfully failed to file for 3 years faces potential penalties of $300,000 (50% × $200,000 × 3 years) — potentially exceeding the account value
• Criminal prosecution: Willful FBAR violations can result in criminal charges under 31 U.S.C. § 5322, carrying fines up to $250,000 and imprisonment up to 5 years

Recent Case Law

The Supreme Court’s 2023 decision in Bittner v. United States (598 U.S. 85) clarified that non-willful FBAR penalties are assessed per report (i.e., per year of failure), not per account — a significant reduction in exposure. Under Bittner, the American with 3 accounts and 3 years of non-filing faces a maximum non-willful penalty of $30,000 (3 years × $10,000), not $90,000. However, willful penalties remain per-account and were not affected by Bittner.

“The Bittner decision was a major win for Americans abroad, but it only applies to non-willful violations. If the IRS determines you were willful — and they look at factors like whether you checked ‘no’ on Schedule B when you had foreign accounts — the per-account penalty still applies, and the numbers become devastating.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

Filing Deadline Calendar

Threshold Amounts Comparison

What Counts as a “Foreign Account” — FBAR vs. DCBE?

The definition differs between FBAR and DCBE, creating gaps that catch people:

For FBAR Purposes (US)

A “foreign financial account” includes:

• Bank accounts in Brazil (checking, savings, CDB, poupança)
• Brokerage accounts at Brazilian brokerages (XP, BTG, Clear, etc.)
• Investment funds (fundos de investimento) where you have a direct ownership interest
• Prepaid cards and digital wallets with stored value (Nubank, PicPay, etc.)
• Life insurance or pension with cash value — PGBL and VGBL accounts at Brazilian insurers
• Cryptocurrency accounts at foreign exchanges (under current FinCEN guidance, centralized exchange accounts count)

Not included: Direct ownership of real property (but a bank account holding rental income is included), direct ownership of precious metals or art.

For DCBE Purposes (Brazil)

“Foreign assets” is broader than financial accounts and includes:

• Bank accounts abroad (US checking, savings, money market)
• Brokerage and investment accounts (Schwab, Fidelity, Vanguard, etc.)
• Real property abroad (your US house, rental properties, undeveloped land)
• Equity in foreign companies (S-Corp shares, LLC interests, C-Corp shares)
• Trusts where you are settlor or beneficiary
• Loans receivable from foreign entities
• Cryptocurrency held at foreign exchanges or in self-custody wallets
• Retirement accounts (IRA, 401(k), Roth IRA, pension plans)
• Life insurance policies with foreign insurers

Key difference: DCBE captures real property and retirement accounts that FBAR does not. Your US house and your 401(k) count toward the DCBE threshold.

What Are the CBE Obligations for Brazilian Tax Residents?

The CBE (Capitais Brasileiros no Exterior) framework — administered by the Banco Central do Brasil under Resolução BCB nº 278/2022 — is the broader regulatory umbrella that includes the DCBE filing. Understanding the full CBE framework helps contextualize the reporting requirements.

Who Must Report

Any individual or legal entity that is a Brazilian tax resident (including US citizens who have established tax residency in Brazil) and holds assets of any type outside Brazil with a total value exceeding USD $1 million as of December 31.

What Triggers Tax Residency in Brazil

Under Instrução Normativa RFB nº 208/2002, you become a Brazilian tax resident when:

• You enter Brazil on a permanent visa
• You enter on a temporary work visa and begin employment
• You have been physically present in Brazil for 184+ days within a 12-month period (even on a tourist visa)
• You acquire Brazilian citizenship or permanent residency

For Americans: Once you become a Brazilian tax resident, you have reporting obligations to BOTH countries simultaneously. Brazil taxes worldwide income. The US taxes citizens on worldwide income regardless of where they live. The overlap creates the dual-reporting burden this guide addresses.

CBE Asset Categories

The DCBE filing (the annual declaration component of CBE) requires reporting in the following categories:

1. Depósitos — bank accounts, money market accounts
2. Participações societárias — equity in foreign companies, LLC interests, corporate stock
3. Empréstimos — loans receivable from foreign persons or entities
4. Imóveis — real property (residential, commercial, agricultural)
5. Aplicações financeiras — investments, brokerage accounts, mutual funds
6. Outros bens e direitos — other assets including intellectual property, cryptocurrency, trusts, retirement accounts

Each asset must be reported with:

• Country where held
• Type and description
• Value in USD (converted at the PTAX rate on December 31, published by the Banco Central)
• Acquisition date and original value

How Does the IGA Automatic Information Exchange Work?

The US-Brazil Intergovernmental Agreement (IGA) is the mechanism through which FATCA operates between the two countries. Brazil signed a Model 1 IGA with the United States, meaning information flows through the tax authorities rather than directly from financial institutions to the IRS.

How It Works in Practice

1. Brazilian banks identify US persons — through W-9/W-8 forms, FATCA self-certification questionnaires, US phone numbers, US addresses, US place of birth on file, or Social Security numbers
2. Brazilian banks report to the Receita Federal — account holder identity, account balances, gross interest, dividends, and gross proceeds from sales
3. Receita Federal transmits to the IRS — annually, under the terms of the IGA
4. The IRS receives data and cross-references it against FBAR filings, Form 8938 filings, and income reported on Form 1040

What the IRS Already Knows

If your Brazilian bank has identified you as a US person — and every major Brazilian bank (Itaú, Bradesco, Banco do Brasil, Santander, Nubank, Inter) has FATCA compliance programs — the IRS receives:

• Your name, address, and US taxpayer identification number
• Account number
• Account balance or value as of year-end
• Gross amounts of interest, dividends, and other income
• Gross proceeds from the sale of securities

This means the IRS can compare: What your Brazilian bank reported about your accounts versus what you reported on your FBAR and Form 8938. Discrepancies are flagged automatically.

What the Receita Federal Already Knows

The information exchange is bidirectional. Under the IGA:

• US financial institutions report accounts held by Brazilian tax residents to the IRS
• The IRS transmits this data to the Receita Federal
• The Receita Federal cross-references against your DIRPF and DCBE

Your US brokerage account at Schwab, your Bank of America checking account, and your Vanguard retirement account — if any of these institutions identified you as a Brazilian tax resident — that information reaches the Receita Federal.

“The era of hiding accounts is over. Between FATCA, CRS, and the US-Brazil IGA, both governments have real-time visibility into your cross-border financial life. The question is not whether they will find out — it is when. Voluntary compliance costs a fraction of what enforcement penalties extract.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

Penalties Comparison

The asymmetry problem: FBAR penalties are among the most severe in the US tax code. Even after Bittner reduced non-willful penalties to per-report assessment, the amounts remain substantial. And willful penalties — assessed per account — can exceed the total value of the accounts being penalized.

How Do DCBE and FBAR Overlap but Differ?

For Americans in Brazil: You file DCBE to report your US assets TO Brazil, and FBAR to report your Brazilian accounts TO the US. You are reporting in both directions simultaneously.

Real Scenarios: Where Americans in Brazil Get Caught

Scenario 1: The Poupança Account Surprise

Profile: Sarah, US citizen, married to a Brazilian, living in São Paulo since 2020. Has a joint Itaú checking account and a personal poupança savings account. Combined peak balance: R$55,000 (~$11,000). Never filed FBAR because she thought only “investment accounts” counted.

Exposure: 5 years of non-filing. Under Bittner, non-willful penalty: up to $50,000 (5 years × $10,000 per report). Her Brazilian bank has been reporting her to the IRS through FATCA since she opened the account.

Resolution: Streamlined Filing Compliance Procedures — 0% penalty for qualifying foreign residents.

Scenario 2: The LTDA Owner Who Forgot Form 5471

Profile: Michael, US citizen, opened a consulting LTDA in Brazil in 2022. Properly filed FBAR and Form 8938 every year. Never heard of Form 5471.

Exposure: 4 years of non-filing of Form 5471. Penalty: $10,000 per year = $40,000. Plus continued penalties of $10,000/month after IRS notice until filed.

Resolution: Reasonable cause defense — argue that the failure was due to reasonable cause, not willful neglect. Success depends on documenting good-faith efforts to comply.

Scenario 3: The Dual Resident With a US House

Profile: Roberto, Brazilian-American dual citizen, living in Brazil since 2019. Owns a house in Florida valued at $450,000 and has a Schwab brokerage account worth $300,000. Never filed DCBE because he thought it only applied to bank accounts.

Exposure: His total foreign assets ($750,000) are below the $1 million DCBE threshold — so he does not need to file DCBE. But he must report the Schwab account on his DIRPF (Brazilian income tax return). And he must report his Brazilian accounts on FBAR. The common mistake here is assuming DCBE is the only Brazilian reporting obligation. The DIRPF requires disclosure of all foreign assets regardless of value.

Resolution: Ensure DIRPF includes all foreign assets in the Bens e Direitos section. File FBAR for Brazilian accounts.

Scenario 4: The Crypto Trader

Profile: Amanda, US citizen in Rio de Janeiro, trades cryptocurrency on Binance (headquartered outside the US) and Mercado Bitcoin (Brazilian exchange). Combined peak balance across both exchanges: $35,000.

Exposure: Both accounts are reportable on FBAR. The Binance account is a “foreign financial account” for FBAR purposes. The Mercado Bitcoin account is also foreign (from the US perspective). Additionally, the Receita Federal requires separate crypto reporting under IN RFB 1.888/2019 for Brazilian residents conducting crypto transactions exceeding R$35,000/month on foreign exchanges.

Resolution: File FBAR reporting both exchange accounts. Report crypto holdings on DIRPF. Comply with IN 1.888 monthly reporting.

Common Reporting Mistakes

1. Not reporting poupança (savings) accounts on FBAR

Poupança accounts are bank accounts. They count toward the $10K FBAR threshold. The fact that they earn minimal interest does not exempt them.

2. Forgetting VGBL/PGBL on FBAR

Brazilian retirement/insurance products with account balances are reportable. The IRS has not issued definitive guidance on PGBL/VGBL classification, but the conservative (and recommended) approach is to report them. The potential penalty for not reporting far exceeds any argument that they are exempt.

3. Not reporting US real property on DCBE

Your US house counts toward the DCBE $1M threshold. Many Brazilians (and Brazilian tax residents) forget that DCBE covers real property — it is not limited to financial accounts.

4. Using the wrong exchange rate

DCBE uses the PTAX rate on December 31 (published by Banco Central). FBAR uses the Treasury Department rate on December 31. These rates differ. Using the wrong rate can push you above or below a threshold — and creates discrepancies that trigger audit inquiries.

5. Not filing FBAR for accounts with zero year-end balance

If your Brazilian account had a balance over $10K at any point during the year — even if it was zero on December 31 — FBAR is required. The high-water mark rule catches accounts that held funds temporarily.

6. Ignoring Form 5471 for Brazilian LTDA ownership

If you own 10%+ of a Brazilian LTDA (the most common entity type), you likely must file Form 5471. This is one of the most commonly missed international forms, and the penalty is $10,000 per year of non-filing with no statute of limitations.

7. Not converting DCBE asset values correctly

DCBE requires reporting in USD at the PTAX rate on December 31. Brazilian real property and holding company quotas must be converted from BRL to USD using this rate. Many filers use incorrect rates or forget to update property valuations.

8. Failing to report crypto holdings

Cryptocurrency held at foreign exchanges is reportable on FBAR (if the exchange qualifies as a financial account) and on DCBE (as a foreign financial asset). The Receita Federal also requires separate crypto reporting through IN RFB 1.888/2019. Missing any one of these three obligations creates independent penalty exposure.

9. Assuming Form 8938 replaces FBAR

Filing Form 8938 with your tax return does not satisfy the FBAR requirement. They go to different agencies (IRS vs. FinCEN), cover different asset types, use different thresholds, and carry independent penalties. Most Americans in Brazil must file both.

10. Not reporting signature authority accounts

If you have signature authority over a Brazilian corporate account (e.g., you are a signatory on your employer’s bank account) but no financial interest, FBAR still requires reporting. Many employees with check-signing authority on company accounts miss this requirement.

How to Handle Multi-Year Non-Compliance

Many Americans discover their DCBE and FBAR obligations years late. The correction strategy depends on the duration and nature of the non-compliance:

1-2 Years Late

File the delinquent returns immediately. FBAR has an automatic extension to October 15, so if you file before that date, you may not even be late. DCBE late filing triggers graduated penalties starting at R$2,500. The Receita Federal often does not pursue penalties for brief, voluntary late filings.

3+ Years Late (Non-Willful)

US side: The IRS Streamlined Filing Compliance Procedures are the standard path. You file 3 years of delinquent tax returns and 6 years of delinquent FBARs. For qualifying foreign residents (living outside the US for 330+ days in at least one of the delinquent years), the penalty is 0%. For US residents who were non-willful, the penalty is 5% of the highest aggregate foreign account balance during the 6-year period.

Brazil side: File all delinquent DCBEs and DIRPFs. Each filing incurs its own penalty. Voluntary correction before receiving an audit notification (intimação) results in reduced penalties under Art. 138 of the Código Tributário Nacional. Coordinate with a Brazilian contador to minimize exposure.

Willful Non-Compliance

If the non-compliance was willful (you knew about the obligations and chose not to file), the Streamlined Procedures are not available. The IRS Voluntary Disclosure Practice or traditional amended filing may be necessary. Willful FBAR penalties reach $100,000+ per account per year or 50% of account balances — potentially exceeding the account value itself. Seek specialized legal counsel before taking any action.

“The Streamlined Procedures are the single most valuable tool available to non-compliant Americans abroad. Zero penalty for qualifying foreign residents — that is extraordinary. But you must certify that the failure was non-willful. If you cannot make that certification truthfully, you need a different strategy, and you need a lawyer before you make any disclosures.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

What Does the Receita Federal Know About Your US Accounts?

Brazil receives automatic information exchange from the US through:

1. FATCA IGA Model 1 — US financial institutions report Brazilian tax residents’ accounts to the IRS, which transmits the data to Brazil’s Receita Federal
2. CRS (Common Reporting Standard) — While the US has not adopted CRS globally, Brazil exchanges information with 100+ jurisdictions that do participate

The Receita Federal — operating under Lei 9.430/1996 and subsequent normative instructions — receives:

• Account holder identity
• Account balances
• Gross interest, dividends, and other income
• Gross proceeds from sales

This data is cross-referenced against your DIRPF and DCBE. Discrepancies trigger audit notices (malha fina).

What Does the IRS Know About Your Brazilian Accounts?

The IRS receives information about US persons’ Brazilian accounts through:

1. FATCA IGA Model 1 — Brazilian financial institutions report US persons’ accounts to the Receita Federal, which transmits to the IRS
2. Information exchange agreements — Brazil and the US have a Tax Information Exchange Agreement (TIEA)

Brazilian banks (Itaú, Bradesco, BB, Nubank, Inter, Santander) actively identify US persons through:

• W-9 or W-8 forms during account opening
• FATCA self-certification questionnaires
• US phone number, address, or place of birth on file
• US Social Security Number or ITIN

If your Brazilian bank knows you are American, your account data is being reported to the IRS. The data arrives with a lag of approximately 12–18 months — meaning the IRS receives 2024 data in late 2025 or early 2026.

Filing Coordination Strategy

For Americans in Brazil, the optimal filing sequence each year is:

1. January-February: Gather all US and Brazilian tax documents (W-2s, 1099s, Brazilian informes de rendimento)
2. March-April: Prepare US Form 1040 (or file extension); file FBAR by April 15 (auto-extended to Oct 15)
3. April-May: Prepare and file Brazilian DIRPF (due last business day of May)
4. June: File DCBE (due June 5) using December 31 asset data
5. October: File extended US return if applicable; ensure FBAR is finalized

The key is ensuring data consistency across all filings. Your US brokerage account balance reported on FBAR should match the value reported on DCBE (adjusted for exchange rate differences — Treasury rate vs. PTAX rate). Your Brazilian income reported on DIRPF should match what appears on your US Form 1040. Discrepancies between filings are the primary trigger for audit inquiries from both the IRS and Receita Federal.

Voluntary Disclosure Options

US Side: Streamlined Filing Compliance Procedures

If you are a non-willful non-filer (you did not know about FBAR or Form 8938), the IRS Streamlined Filing Compliance Procedures allow you to:

• File 3 years of delinquent tax returns
• File 6 years of delinquent FBARs
• Pay a 5% penalty on the highest aggregate balance of unreported foreign accounts (0% if you qualify as a foreign-resident taxpayer under the bona fide residence test)
• Certify that the failure was non-willful

This is the most common path for Americans in Brazil who discover their reporting obligations years late.

Brazil Side: Regularization

Brazil has periodically offered voluntary disclosure programs (most recently the RERCT in 2016-2017, governed by Lei nº 13.254/2016). Outside a formal program, late filing of DCBE triggers graduated penalties that increase with delay duration. Late DIRPF filings trigger the standard multa de ofício. There is no permanent “streamlined” equivalent in Brazil — consult a Brazilian tax advisor for the current best approach.

Frequently Asked Questions

Do I need to report my Brazilian bank account on both FBAR and Form 8938?

If you meet the thresholds for both, yes. FBAR reports to FinCEN; Form 8938 reports to the IRS. Different agencies, different purposes, both mandatory. The $10,000 FBAR threshold is far lower than the $200,000/$400,000 Form 8938 threshold for expats — so many Americans file FBAR but not Form 8938.

My Brazilian brokerage account holds only Brazilian stocks. Is it reportable on FBAR?

Yes. A brokerage account at a Brazilian institution is a “foreign financial account” for FBAR purposes, regardless of what assets it holds. The account location (Brazil) determines reporting, not the asset nationality.

Does my spouse’s Brazilian account count toward my FBAR threshold?

If you file jointly, yes — combined accounts are considered. If you file separately and have no signature authority over your spouse’s account, it does not count toward your threshold. But if you have joint accounts, those are reportable.

I filed my DCBE late. What is the penalty?

Penalties range from R$2,500 (less than 30 days late) to R$250,000 (failure to file or false information), depending on delay duration and asset amount. The Banco Central may reduce penalties for self-correction before audit notification.

Can the Receita Federal access my US bank account information?

Yes — through FATCA automatic information exchange. If your US bank identified you as a Brazilian tax resident (or dual US-Brazil), your account data is transmitted to Brazil annually. This includes balances, interest, dividends, and gross proceeds.

I have a Brazilian holding company. Does that trigger Form 5471?

If you own 10%+ of a Brazilian LTDA or S.A. and are a US person, you likely meet the Form 5471 filing requirement. The form requires detailed financial statements of the foreign corporation, and the $10,000/year penalty for non-filing with no statute of limitations makes this one of the highest-risk international compliance gaps.

“Most US CPAs do not understand DCBE. Most Brazilian contadores do not understand FBAR. The result is gaps between filings — and gaps are what trigger audit inquiries from both the IRS and the Receita Federal. You need an advisor who speaks both systems.” — Zachariah Zagol, Founding Partner, OAB/SP 351.356

Why ZS Advogados?

International reporting compliance for Americans in Brazil requires simultaneous fluency in US tax law (FBAR, FATCA, Form 5471, Form 8938) and Brazilian tax law (DCBE, DIRPF, CBE, carnê-leão, IN 1.888). Most US CPAs do not understand DCBE. Most Brazilian contadores do not understand FBAR. The result is gaps — and gaps trigger penalties.

Zachariah Zagol — the first American admitted to the Brazilian Bar (OAB/SP 351.356), with an LL.M. from USC Gould School of Law — coordinates compliance across both systems. He works with US CPAs and Brazilian contadores to ensure no filing is missed, no threshold is miscalculated, and no account goes unreported. For multi-year non-compliance situations, he evaluates Streamlined Procedures eligibility, prepares the non-willful certification, and coordinates the simultaneous US and Brazilian filings that minimize penalty exposure on both sides.

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