Failed to declare foreign bank accounts and file FBAR. Now what?
Jul 22nd 2019, 7:24 am
#16
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
So I think we’re going to file ourselves. The forms look straightforward and we’ve set aside next weekend to complete them.
The only part we are concerned about is how to show non-wilfulness in the written statement part. I mean, this absolutely was non-wilful, we made incorrect assumptions about what constituted a “foreign account” and as soon as we found out, we wanted to rectify it. Is that basically the right thing to say (along with other declarations about the accounts being already set up before we even moved here etc) or are we dropping ourselves in it?
The only part we are concerned about is how to show non-wilfulness in the written statement part. I mean, this absolutely was non-wilful, we made incorrect assumptions about what constituted a “foreign account” and as soon as we found out, we wanted to rectify it. Is that basically the right thing to say (along with other declarations about the accounts being already set up before we even moved here etc) or are we dropping ourselves in it?
Jul 22nd 2019, 7:27 am
#17
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
There is no credit available in the US for any UK tax withheld because under UK domestic law there would have been no tax due.
The amount payable under the SDOP is the US tax due on the interest, IRS interest on the tax, plus a penalty equal to 5% of the largest of the values on 31 December 2016, 2017 or 2018. Schedule B, including Part III, will need correcting. FBARs would be filed for the years 2013 to date.
The amount payable under the SDOP is the US tax due on the interest, IRS interest on the tax, plus a penalty equal to 5% of the largest of the values on 31 December 2016, 2017 or 2018. Schedule B, including Part III, will need correcting. FBARs would be filed for the years 2013 to date.
Jul 22nd 2019, 7:27 am
#18
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
The IRS have processed tens of thousands of streamlined filings. There is nothing (not a jot) in your statement that should cause concern (or indeed require a lawyer).
Jul 22nd 2019, 11:45 am
#19
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
Jul 22nd 2019, 11:49 am
#20
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
You have to declare on the SDO that you have filed any necessary FBARs and stated when filing that you were doing so as part of the SDO
Jul 22nd 2019, 11:54 am
#21
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
As I said, we are happy to use a lawyer if necessary. We’ve worked our we owe less than $100 in back taxes (plus the 5% penalty, of course). Would it be worth employing a lawyer for that?
Jul 22nd 2019, 12:30 pm
#22
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
Jul 22nd 2019, 4:02 pm
#23
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
Only if you think you have criminal exposure. Were the undeclared amounts the proceeds of crime?
Jul 22nd 2019, 4:16 pm
#24
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
Jul 23rd 2019, 1:52 am
#25
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
Jul 23rd 2019, 5:15 am
#26
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
I would avoid talking to IRS, for peace of mind talk to tax attorney or even just an accountant who specializes in Expat taxes. File the returns and let your representative handle any correspondence.
Jul 23rd 2019, 10:07 am
#27
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
Thanks to everyone who has replied to this, both here and in DMs, you have really helped us.
We filled in the SDOP forms last night and we owe a grand total of $27 in back taxes. This weekend we’re going to check over the forms, file any outstanding FBARs then mail off the forms with a cheque for the taxes and the 5% penalty and hopefully that will be that. We don’t expect to hear anything back from the IRS as apparently they don’t usually enter into correspondence over SDOP filing.
Once again, thanks for all you help. It’s been invaluable at what was a scary time for us.
We filled in the SDOP forms last night and we owe a grand total of $27 in back taxes. This weekend we’re going to check over the forms, file any outstanding FBARs then mail off the forms with a cheque for the taxes and the 5% penalty and hopefully that will be that. We don’t expect to hear anything back from the IRS as apparently they don’t usually enter into correspondence over SDOP filing.
Once again, thanks for all you help. It’s been invaluable at what was a scary time for us.
Jul 23rd 2019, 3:30 pm
#28
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Re: Failed to declare foreign bank accounts and file FBAR. Now what?
Thanks to everyone who has replied to this, both here and in DMs, you have really helped us.
We filled in the SDOP forms last night and we owe a grand total of $27 in back taxes. This weekend we’re going to check over the forms, file any outstanding FBARs then mail off the forms with a cheque for the taxes and the 5% penalty and hopefully that will be that. We don’t expect to hear anything back from the IRS as apparently they don’t usually enter into correspondence over SDOP filing.
Once again, thanks for all you help. It’s been invaluable at what was a scary time for us.
We filled in the SDOP forms last night and we owe a grand total of $27 in back taxes. This weekend we’re going to check over the forms, file any outstanding FBARs then mail off the forms with a cheque for the taxes and the 5% penalty and hopefully that will be that. We don’t expect to hear anything back from the IRS as apparently they don’t usually enter into correspondence over SDOP filing.
Once again, thanks for all you help. It’s been invaluable at what was a scary time for us.
