Fbar: I forgot, now what?

[sanrin]

I forgot to file the FBAR for the last 2 year. I have a bank account in Europe where max I have was 40k a year.
Should I report it now (amended) with the risk of getting a penalty/fine or ignore and get worse consequences when next year I will start reporting the FBAR?

[inadmissible]

Is filing FBAR the only thing you have forgotten to do? If so take advantage of the IRS's "just file it" program https://www.irs.gov/individuals/inte...ion-procedures

If you have also been "forgetting" to pay taxes on your offshore interest income, your choices become more complicated

[sanrin]

Is filing FBAR the only thing you have forgotten to do? If so take advantage of the IRS's "just file it" program https://www.irs.gov/individuals/inte...ion-procedures

If you have also been "forgetting" to pay taxes on your offshore interest income, your choices become more complicated

all I know is that I did not include the Fbar for that amount.

Will I get a fine?
Will my next visa transfer be penalized?

[inadmissible]

It says on the link I provided:

The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.

emphasis added by me

[sanrin]

It says on the link I provided:



emphasis added by me

I have not reported the FBAR as well as its interest so what should I expect?

[inadmissible]

You can amend your prior tax returns to include the interest income, pay the difference in taxes (as well as any income tax penalties that apply for late payment), and then file the delinquent FBARs... but you can not rely on the IRS's generous offer to waive all FBAR failure to file penalties. You could just hope that they don't assess FBAR related penalties. If you need absolute certainly about FBAR related liability, you can utilize their Streamlined Filing Procedure (where you pay a 5% miscellaneous offshore penalty) https://www.irs.gov/individuals/inte...nce-procedures if you can credibly certify that your noncompliance was not willful

[sanrin]

when is the deadline?

[inadmissible]

The deadline for Form 1040 (income tax) late penalties (and interest thereon) is typically April 15th of the year following the tax year in question. In your case, that has passed, so you will owe late penalties on income taxes passed due

The deadline for "just file it", streamlined filing procedure, and the offshore voluntary disclosure program is effectively the date on which you are selected for an income tax exam (audit). Once you're selected for an audit, all these deals are off the table

You don't qualify for assurances under the "just file it" procedure because you aren't current on your income taxes due, so until you're selected for exam your chances of being examined is *maybe*, as opposed to *certainly* once you are indeed selected for an exam

[sanrin]

The deadline for Form 1040 (income tax) late penalties (and interest thereon) is typically April 15th of the year following the tax year in question. In your case, that has passed, so you will owe late penalties on income taxes passed due

The deadline for "just file it", streamlined filing procedure, and the offshore voluntary disclosure program is effectively the date on which you are selected for an income tax exam (audit). Once you're selected for an audit, all these deals are off the table

You don't qualify for assurances under the "just file it" procedure because you aren't current on your income taxes due, so until you're selected for exam your chances of being examined is *maybe*, as opposed to *certainly* once you are indeed selected for an exam

Can you elaborate a bit on this exam (audit)? What do I have expect from it? Penalties? If so how much?

[inadmissible]

Income tax penalties are small potatoes, especially since the deficiency is small - just bank interest https://www.irs.gov/uac/newsroom/eig...ment-penalties

FBAR penalties are onerous, you want to avoid those

[sanrin]

Income tax penalties are small potatoes, especially since the deficiency is small - just bank interest https://www.irs.gov/uac/newsroom/eig...ment-penalties

FBAR penalties are onerous, you want to avoid those http://www.thetaxadviser.com/newslet...penalties.html

this looks scary
I was a simple immigrant who move to the US on a non-permanent visa. Does this exclude me from declaring the FBAR?
Again we are talking about 40k max that I had a year

[inadmissible]

I was a simple immigrant who move to the US on a non-permanent visa. Does this exclude me from declaring the FBAR?

Maybe, if you were on an F or J visa, otherwise you are a US tax resident subject to US tax rules due to your substantial presence

[sanrin]

Maybe, if you were on an F or J visa, otherwise you are a US tax resident subject to US tax rules due to your substantial presence

considering the amount of money in my bank account (40K) how big is the risk I will get a penalty? An for how much?

[vanu333]

I forgot to file the FBAR for the last 2 year. I have a bank account in Europe where max I have was 40k a year.
Should I report it now (amended) with the risk of getting a penalty/fine or ignore and get worse consequences when next year I will start reporting the FBAR?

Hi,
Wondering what you did at last? as I am in same boat