john09_2013

Hello and sorry if this is a stupid question but i just learned something calling FBAR filing, i am canadian citizen living in US as PR for last 2 years, i filed 1040form for last 2 years "Tax year 2015 & tax year 2016" eventhough i didnt make any income because i am a green card.
i just became aware about FBAR and i do have canadian bank accounts with just a little bit over 10K, how do i file FBAR for 2015 since deadline is past due and for 2016 as well?
am i in trouble? do i get any penalties??

Thank you so much in advance

MidAtlantic

Just file them on-line: BSA E-Filing System - No Registration Filing FBAR

Give as your reason for filing late, "Did not know that I had to file". It's one of the options in the drop-down menu.

For such a small sum you will hear nothing further.

john09_2013

Thanks MidAtlantic for quick response,

in the IRS site https://www.irs.gov/individuals/inte...ion-procedures , they mention the requirement to "Include a statement explaining why you are filing the FBARs late" in addition to the one of the options in the drop down menu...
i am wondering if that means some form of uploaded letter in which i explain in more details why i didnt file FBAR, a form that i only heard of today.
Side note: the canadian bank accounts are checking accounts and dont have any interest in them and i made 0$ income since i became PR worldwide.

MidAtlantic

No, your statement is the drop down menu option.

In the bigger picture you are only late for the 2015 return, and you say that you were only a bit over 10K. That is trivial in the scale of things. Your 2016 return is not late.

Cook_County

Don't forget to include an RRSP or any other accounts.

john09_2013

Thanks for the answer,

i talked to IRS and they mentioned that i might need to submit a schedule B part 3 and also i found out that usually this form is filed with 1040 and not 1040EZ which i did for 2015 only. in 2016 i used form 1040 instead.
i did also realize that my foreign savings account gave me 30 cents interest for both years but still unsure whether that results in any different changes since i read that if less than 49 cents it becomes 0!! and in my 2 years i wrote that my world wide income was 0 and not 30 cents!

tom169

TurboTax rounded everything on my tax return apart from interest and dividends. Not sure if that is for any special reason.

durham_lad

You won't need to report that small amount of interest. Even US banks don't send or file 1099-INT forms if the interest paid out over the year is less than $10. You should report all interest payments to the IRS but I think most folks don't report just a few $ and certainly nothing under $1

robin1234

I always prepare and file using pen & paper. With rounding, I always round on the actual 1040 or other forms, BUT if the figure is drawn from a subsidiary calculation in a schedule, I don't round in the subsidiary calculation. So, let's say I have three interest bearing accounts that I list in Schedule B, and the interest is $10.25, $10.35 & $10.45 on the three accounts, I'd list the exact sums on the Schedule B, come up with a total of $31.05, and then round to $31 on the 1040. Clearly if you rounded out each you'd come out with $30, thus gypping the IRS, and the US Govt wouldn't be able to afford the next aircraft carrier.

tom169

Makes sense to me. And I mean, after all, you don't want General "Mad Dog" phoning you up personally and blaming you for a lack of funding.

john09_2013

Thanks guys for the answers,

which currency rate shall i use for FBAR currency conversion from CAD to USD for 2015 & 2016? is it the one on the end of the year in both IRS/Treasury site? or shall i use the interest rate from sites such as XE for the day with the biggest amount?

robin1234

I always use the treasury year end rate.

durham_lad

+1

MidAtlantic

Treasury Rates as at December 31, as per the instructions.

https://www.fiscal.treasury.gov/fsre...rrentRates.htm

Rete

what does this mean? You didn't make any income because you have a green card? If you have no income why did you file?

Hubby is a Canadian by birth and his RRSP what not employer issued. It was only contributed by himself from his earnings.

He's been here 18 years and never filed a FBAR but then doubt that he had more than 10,000 Cdn in his checking account until recently. Will have to check it out this year.