californiakid12

can anyone recommend a CPA in California, ideally the Bay area to deal with an FBAR issue. I have read about "Pete" the accountant who has worked with forum members but I also note he seems busy and may not be taking on new business. Thank you in advance.

Steve_

Well it's basically a list of your foreign accounts, so all anyone else will do is ask you to provide a list and copy it onto the form: BSA E-Filing System - No Registration Filing FBAR

californiakid12

I realize that, it's just that it was done incorrectly in 2012 and skipped in 2013 due to bad advice. I have time to do it correctly for 2014 and do some 1040x amendments but I need some advice from someone very well accustomed to this scenario. The amounts involved are small and I just want to be compliant.

Cook_County

An FBAR is not a tax return, so a CPA may not help you. They would need to have E & O insurance and an engagement letter that covers the risk of FBARs. The E & O may be tough for them to get.

MidAtlantic

There's provision in the FBAR entry screen to amend a previous submission (2012) and do 2013 late. Just file 2014 which will be on time.

A minor adjustment to 1040 would just be taking the original and correcting it for the "small amount".

It really doesn't sound like something that requires a CPA and you already have experience of bad advice.

californiakid12

Thanks MidAtlantic. Looking back at my 2012 records, it looks like the FBAR form was not sent by who prepared my taxes. The interest income was reported but not the FBAR. Since there was no FBAR at all reported where does that leave me? I also learned I should have put non resident flags on my account, I'm very worried at this stage.

Pulaski

Why? There is currently no history of anyone other than those engaged in deliberate fraud being sanctioned in any way for errors in FBAR reporting. Unless you are a millionaire with a fortune salted away in offshore trusts and have filed iffy FBAR paperwork to hide that fact, there really is nothing for you to worry about.

MMcD

Don't know what you mean by 'non-resident flags'?
Looks like you failed to file 2 years of FBARS (2012, 2013) and like you need to amend 1 (or 2?) year(s) of 1040s

This link, which I actually posted earlier today in another thread, related to a different issue (don't be put off at the link title) might provide some insight as to how to proceed.
It discusses possible ramifications of failure to file FBARS in a timely fashion.

Hopefully it'll calm any panic you might be feeling and give you some insight in how best to proceed .....

Will IRS Find Your Small Foreign Bank Account? - Forbes

also....
http://www.forbes.com/sites/stephend...inquent-fbars/

californiakid12

From what I read it's when the interest is not reported along with no FBAR is when theres trouble. In 2012 the interest was reported but wasn't after that due to a misunderstanding. The Forbes article above states that.

MMcD

Re-reading your posts and the links I provided above - it looks like the most relevant question is:

Is there any tax due with regard to your 2012 and 2013 filings?
It seems that if there is not - delinquent FBAR filing for those years becomes a far more straightforward matter. And you should not be subject to penalties.
If, on the other hand, you under-reported your income - or miscalculated the tax that was due - then you do have a problem

MidAtlantic

FBAR is not part of your taxes, it is quite separate. FBARs do not by themselves necessitate 1040 amendments. From what you say there really is no reason to be "very worried" and it is simply resolved.

Go to the FBAR website: Individuals Filing the Report of Foreign Bank and Financial Accounts (FBAR)

I suggest you use the PDF form, you can then do it at your own pace.

The missing return(s) can be entered and there are a variety of reasons you can select for late filing or give your own explanation.

For an amended return there is provision on the form to indicate this.

MMcD

As you say, 'it is simply resolved' if he paid all tax due at the time of his filings.
But the OP seems to be implying that his taxes were, perhaps, under-calculated. (Hence the need to amend). And if that's the case - then I'm not sure that following your advice would be the best way to proceed.

Delinquent FBAR Submission Procedures

MidAtlantic

In #6 above he says "the interest income was reported".

If that is wrong then I agree with you.

californiakid12

Tax was paid on the interest in the foreign jurisdiction which is not the proper way to have it I believe.

Disenchanted

If tax was taken out of the interest income in the originating country can the OP not just amend his tax returns to reflect that by invoking the tax treaty and claim foreign tax credit and thus either negate of reduce the IRS tax due?