FBAR for defunct pension scheme?
#1
Just Joined
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Joined: Jul 2014
Posts: 1
FBAR for defunct pension scheme?
Hi all,
I've read some threads on FBAR topics, but none seem to cover my situation. I've been in the US, as a resident alien, for a few years. My only financial interest in the UK is an old Equitable Life (employer-sponsored) pension. Though now defunct and closed to new business, it does have more than $10k (I guess I'll just leave it there until I retire, wherever that is). While working on my last US tax forms, I came across the FBAR declaration. Some initial investigation seemed to indicate I should tick that I would file an individual FBAR. Since my tax filing, after trying to make more sense of the various instructions, I now don't think I need to. Also, I moved house, inter-state, and forgot all about it in the upheaval, so now it's past the deadline anyway. So now I'm trying to work out the best thing to do. Do I need to eFile an FBAR or not? Should I notify the IRS if I now don't think I need to? If I do need to file, will I be fined? What's my best course of action?
Thanks!
Pete
I've read some threads on FBAR topics, but none seem to cover my situation. I've been in the US, as a resident alien, for a few years. My only financial interest in the UK is an old Equitable Life (employer-sponsored) pension. Though now defunct and closed to new business, it does have more than $10k (I guess I'll just leave it there until I retire, wherever that is). While working on my last US tax forms, I came across the FBAR declaration. Some initial investigation seemed to indicate I should tick that I would file an individual FBAR. Since my tax filing, after trying to make more sense of the various instructions, I now don't think I need to. Also, I moved house, inter-state, and forgot all about it in the upheaval, so now it's past the deadline anyway. So now I'm trying to work out the best thing to do. Do I need to eFile an FBAR or not? Should I notify the IRS if I now don't think I need to? If I do need to file, will I be fined? What's my best course of action?
Thanks!
Pete
#2
Re: FBAR for defunct pension scheme?
Defined contribution pension plans are normally FBAR reportable, although since it won't likely be generating taxable income, it's not going to lead to tax fraud prosecution (similar to Swiss bank account investigations) or anything like that.
It's too late to file a timely FBAR for 2013, and although they do accept late filings, if you were to file for 2013 you might wish to file for 2012 and prior years. The alternative is to file FBAR for 2014 next year (by June 30), as a first time filer. Many people send in first time FBAR filings, without filing for prior years, and it is not the norm for the IRS/Treasury to investigate why prior years were not so filed.
It's too late to file a timely FBAR for 2013, and although they do accept late filings, if you were to file for 2013 you might wish to file for 2012 and prior years. The alternative is to file FBAR for 2014 next year (by June 30), as a first time filer. Many people send in first time FBAR filings, without filing for prior years, and it is not the norm for the IRS/Treasury to investigate why prior years were not so filed.
#3
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Joined: Aug 2013
Location: Athens GA
Posts: 2,133
Re: FBAR for defunct pension scheme?
You have just become aware of the issue, so I would file 2013 now and you can genuinely give as your reason "Did not know that I had to file". That is one of the choices they give you for filing late.
#4
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Joined: Nov 2012
Posts: 902
Re: FBAR for defunct pension scheme?
One assumes that you have elected into the treaty so that growth is not taxed and 8938 filing has been handled if appropriate. If so, the IRS answer is here: Delinquent FBAR Submission Procedures
The statute of limitations for late FBARs is the last 6 years.
The statute of limitations for late FBARs is the last 6 years.
#5
Re: FBAR for defunct pension scheme?
The statute of limitations for late FBARs is the last 6 years.