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F-bar F-up - is accountant bleeding me dry?

F-bar F-up - is accountant bleeding me dry?

Old Apr 6th 2021, 3:52 pm
  #16  
 
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Default Re: F-bar F-up - is accountant bleeding me dry?

Originally Posted by Glasgow Girl View Post
I think the problem for the OP (and many others) is that penalties now apply for failing to file Form 8938. You can avoid the penalties if you amend the previous 3 years tax returns to include any income and tax due and provide Form 8938, and back file up to 6 years of FBARs but amongst other qualifying requirements is that you must have been non resident for at least one of those years (less than 330 days in the US) and unfortunately the OP failed that requirement by about 20 days. So while he could file the FBARs after amending his returns, the failure to file Form 8938 makes him subject to those penalties.
I was wondering from this part of his original post

(accumulated total is not crazy but definitely over $10k threshold)
if indeed he did need to do a form 8938.
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Old Apr 7th 2021, 1:44 pm
  #17  
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Default Re: F-bar F-up - is accountant bleeding me dry?

Originally Posted by jackcharles View Post
Many thanks Glasgow Girl.

The accountant did note that if I had been outside of the US for 330 days in 2017, this would have been much easier, but unfortunately I was in the US for 57 days that year - which I believe is what triggers the 5% penalty? Fortunately I did not file or need to file anything for 2016 or before as I moved in November 2017. Interestingly, the accountant doesn't even think I need to amend the 2017 return. Not sure why 2019 would be different to 2018, that's a good spot. I'll ask.

Incidentally, the accountant now says I'll need to have a "Non-Willful Statement" prepared for about $1,250 as doing it independently is not advised.

I don't have any Trusts or OEICs as you note, it's all standard stuff - a current account, savings account, cash ISA, help-to-buy cash ISA and a personal pension.

I guess the main thing is, is the 5% penalty for voluntary disclosure a better fee than the alternative, which I've advised may be several thousands of dollars per account, per year - which would bankrupt me?
2017 you were not a tax resident (for that particular year) because you did not pass the substantial presence test 'for 2017 alone'.
A nonresident alien is not obligated to file either an FBAR or a Form 8938, for that year.

(if you had tax attorneys: they would/should have submitted your taxes as a 'non resident alien' for 2017)

I was in a similar situation with reporting Fbars for the last 3 years, read up HERE

what qualifies you to file form 8938? and not just amended Fbars?.
do you meet (exceed) this ruling:

tps://www.irs.gov/businesses/corporations/do-i-need-to-file-form-8938-statement-of-specified-foreign-financial-assets

3. The aggregate value of your specified foreign financial assets is more than the reporting thresholds that applies to you:

  • Unmarried taxpayers living in the US: The total value of your 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.


did you have a tax attorney included in your L1 transition for two years?
I did, 3.5 yrs ago, it would be worthwhile consulting them if you had that option included in transition.
They can at least provide those years of 1040's (just the main tax filing form) for your storage records.


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Old Apr 7th 2021, 9:05 pm
  #18  
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Default Re: F-bar F-up - is accountant bleeding me dry?

meant to say 'late fbar' and not amended fbar.
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