Quiet disclosure of FBAR
#31
Re: Quiet disclosure of FBAR
Me too, but just wondering for K1'ers, do you have to file a return with respect to any income from the date you enter the US or from the date when your AOS is confirmed?
I have income with respect to my rental propery but it doesn't cover the mortgage payments - guess I have some reading to do if I don't want to morph into one of those vampire thingies!!
I have income with respect to my rental propery but it doesn't cover the mortgage payments - guess I have some reading to do if I don't want to morph into one of those vampire thingies!!
#35
Forum Regular
Thread Starter
Joined: Mar 2009
Location: Florida
Posts: 78
Re: Quiet disclosure of FBAR
Me too, but just wondering for K1'ers, do you have to file a return with respect to any income from the date you enter the US or from the date when your AOS is confirmed?
I have income with respect to my rental propery but it doesn't cover the mortgage payments - guess I have some reading to do if I don't want to morph into one of those vampire thingies!!
I have income with respect to my rental propery but it doesn't cover the mortgage payments - guess I have some reading to do if I don't want to morph into one of those vampire thingies!!
If your AOS is 8Jan 2010, when your K1 was approved, then I would say its from that point forward that you are on the IRS radar. So you are OK because you are still within time. You have until June 30th 2011 to file your FBAR.
Your rental income etc needs to be accounted for on your 1040 tax form etc, which is due by April 2011. However, FBAR is concerned with the actual bank accounts that your rent goes into. They want the bank account number, address of bank, highest balance over the 2009 year. Any ISA's, savings, etc all needs to be declared....(any account that you have "signature authority" over) but the good bit is if all your aggregated money in UK is less then $10k (about GBP6300) you dont have to file FBAR. Bear in mind if you only exceeded this threshold by one day, you would have to file.
#36
Re: Quiet disclosure of FBAR
Me too, but just wondering for K1'ers, do you have to file a return with respect to any income from the date you enter the US or from the date when your AOS is confirmed?
I have income with respect to my rental propery but it doesn't cover the mortgage payments - guess I have some reading to do if I don't want to morph into one of those vampire thingies!!
I have income with respect to my rental propery but it doesn't cover the mortgage payments - guess I have some reading to do if I don't want to morph into one of those vampire thingies!!
The situation under discussion is different from you for 2 reasons:
-K-1s do not become Permanent Residents at entry
-We're discussing reporting of foreign bank accounts, not rental income
You will want to look up for 2010 whether or not you met the residence test. This is different from your immigration residency status & is based on the number of days in the US. Your filing status will also take your spouse into account, depending on when you married.
Regards the rental income from the UK (or lack thereof) this is going to be an ugly reporting exercise. There's several threads discussing it to snoop through. As you want to start a small business, you're going to want to get familiar with the term 'writing off expenses' so maybe your DH can give you a mini crash course. Your rental will have expenses that you can write off.
I'd suggest you and I could do more to make new arrivals aware of this issue as part of our community service.
#37
Re: Quiet disclosure of FBAR
MandyNi
If your AOS is 8Jan 2010, when your K1 was approved, then I would say its from that point forward that you are on the IRS radar. So you are OK because you are still within time. You have until June 30th 2011 to file your FBAR.
Your rental income etc needs to be accounted for on your 1040 tax form etc, which is due by April 2011. However, FBAR is concerned with the actual bank accounts that your rent goes into. They want the bank account number, address of bank, highest balance over the 2009 year. Any ISA's, savings, etc all needs to be declared....(any account that you have "signature authority" over) but the good bit is if all your aggregated money in UK is less then $10k (about GBP6300) you dont have to file FBAR. Bear in mind if you only exceeded this threshold by one day, you would have to file.
If your AOS is 8Jan 2010, when your K1 was approved, then I would say its from that point forward that you are on the IRS radar. So you are OK because you are still within time. You have until June 30th 2011 to file your FBAR.
Your rental income etc needs to be accounted for on your 1040 tax form etc, which is due by April 2011. However, FBAR is concerned with the actual bank accounts that your rent goes into. They want the bank account number, address of bank, highest balance over the 2009 year. Any ISA's, savings, etc all needs to be declared....(any account that you have "signature authority" over) but the good bit is if all your aggregated money in UK is less then $10k (about GBP6300) you dont have to file FBAR. Bear in mind if you only exceeded this threshold by one day, you would have to file.
#38
Re: Quiet disclosure of FBAR
Perhaps it would be helpful to see what the IRS say for those who have paid their taxes but not filed this particular form:
http://www.irs.gov/businesses/intern...html?portlet=7
Question 17.
---
I have properly reported all my taxable income but I only recently learned that I should have been filing FBARs in prior years to report my personal foreign bank account or to report the fact that I have signature authority over bank accounts owned by my employer. May I come forward under this new initiative to correct this?
The purpose for the voluntary disclosure practice is to provide a way for taxpayers who did not report taxable income in the past to come forward voluntarily and resolve their tax matters. Thus, if you reported and paid tax on all taxable income but did not file FBARs, do not use the voluntary disclosure process.
For taxpayers who reported and paid tax on all their taxable income for prior years but did not file FBARs, you should file the delinquent FBAR reports according to the instructions (send to Department of Treasury, Post Office Box 32621, Detroit, MI 48232-0621) and attach a statement explaining why the reports are filed late. The IRS will not impose a penalty for the failure to file the delinquent FBARs if there are no underreported tax liabilities and the FBARs are filed by August 31, 2011. However, FBARs for 2010 are due on June 30, 2011 and must be filed by that date.
-----
In other words, file the outstanding forms and stay compliant in future.
http://www.irs.gov/businesses/intern...html?portlet=7
Question 17.
---
I have properly reported all my taxable income but I only recently learned that I should have been filing FBARs in prior years to report my personal foreign bank account or to report the fact that I have signature authority over bank accounts owned by my employer. May I come forward under this new initiative to correct this?
The purpose for the voluntary disclosure practice is to provide a way for taxpayers who did not report taxable income in the past to come forward voluntarily and resolve their tax matters. Thus, if you reported and paid tax on all taxable income but did not file FBARs, do not use the voluntary disclosure process.
For taxpayers who reported and paid tax on all their taxable income for prior years but did not file FBARs, you should file the delinquent FBAR reports according to the instructions (send to Department of Treasury, Post Office Box 32621, Detroit, MI 48232-0621) and attach a statement explaining why the reports are filed late. The IRS will not impose a penalty for the failure to file the delinquent FBARs if there are no underreported tax liabilities and the FBARs are filed by August 31, 2011. However, FBARs for 2010 are due on June 30, 2011 and must be filed by that date.
-----
In other words, file the outstanding forms and stay compliant in future.
#39
Re: Quiet disclosure of FBAR
Oh well I have just had a small heart attack reading this thread, I refiled 3 years of tax returns and paid interest and penalties when I discovered I should have declared the interest on my ISA after the tax preparer gave me wrong info, now I see they should have advised me re this. Well I have evidence that I in good faith refiled and payed and they obviously didnt know to file the form. I will be taking a trip to see them this weekend.
This article offers some hope...
http://blogs.forbes.com/janetnovack/...re-tax-cheats/
This article offers some hope...
http://blogs.forbes.com/janetnovack/...re-tax-cheats/
#40
Re: Quiet disclosure of FBAR
Yay, there is some hope. Thanks for the link Bradford Lass!
I learned my mistake tonight and searched for answers...I am less concerned now.
But hope it is true:
"On the other hand, taxpayers who reported all their foreign income and accounts honestly on their tax returns, but didn’t know they had to file FBARs, don’t need to participate in the disclosure initiative, the IRS said; they can simply file the delinquent FBARs and explain their situation and won’t be hit with any penalties."
I learned my mistake tonight and searched for answers...I am less concerned now.
But hope it is true:
"On the other hand, taxpayers who reported all their foreign income and accounts honestly on their tax returns, but didn’t know they had to file FBARs, don’t need to participate in the disclosure initiative, the IRS said; they can simply file the delinquent FBARs and explain their situation and won’t be hit with any penalties."
Last edited by EU_Girl; Feb 11th 2011 at 9:24 am.
#41
Re: Quiet disclosure of FBAR
Thanks JAJ too! You helped me too. Ohhlala will file asap and explain why I missed FBAR last year referring to the below answer.
Perhaps it would be helpful to see what the IRS say for those who have paid their taxes but not filed this particular form:
http://www.irs.gov/businesses/intern...html?portlet=7
Question 17.
---
I have properly reported all my taxable income but I only recently learned that I should have been filing FBARs in prior years to report my personal foreign bank account or to report the fact that I have signature authority over bank accounts owned by my employer. May I come forward under this new initiative to correct this?
The purpose for the voluntary disclosure practice is to provide a way for taxpayers who did not report taxable income in the past to come forward voluntarily and resolve their tax matters. Thus, if you reported and paid tax on all taxable income but did not file FBARs, do not use the voluntary disclosure process.
For taxpayers who reported and paid tax on all their taxable income for prior years but did not file FBARs, you should file the delinquent FBAR reports according to the instructions (send to Department of Treasury, Post Office Box 32621, Detroit, MI 48232-0621) and attach a statement explaining why the reports are filed late. The IRS will not impose a penalty for the failure to file the delinquent FBARs if there are no underreported tax liabilities and the FBARs are filed by August 31, 2011. However, FBARs for 2010 are due on June 30, 2011 and must be filed by that date.
-----
In other words, file the outstanding forms and stay compliant in future.
http://www.irs.gov/businesses/intern...html?portlet=7
Question 17.
---
I have properly reported all my taxable income but I only recently learned that I should have been filing FBARs in prior years to report my personal foreign bank account or to report the fact that I have signature authority over bank accounts owned by my employer. May I come forward under this new initiative to correct this?
The purpose for the voluntary disclosure practice is to provide a way for taxpayers who did not report taxable income in the past to come forward voluntarily and resolve their tax matters. Thus, if you reported and paid tax on all taxable income but did not file FBARs, do not use the voluntary disclosure process.
For taxpayers who reported and paid tax on all their taxable income for prior years but did not file FBARs, you should file the delinquent FBAR reports according to the instructions (send to Department of Treasury, Post Office Box 32621, Detroit, MI 48232-0621) and attach a statement explaining why the reports are filed late. The IRS will not impose a penalty for the failure to file the delinquent FBARs if there are no underreported tax liabilities and the FBARs are filed by August 31, 2011. However, FBARs for 2010 are due on June 30, 2011 and must be filed by that date.
-----
In other words, file the outstanding forms and stay compliant in future.
#42
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,529
Re: Quiet disclosure of FBAR
Note that the FBAR is a whole lot easier to fill out if you have 25 or more foreign accounts, because then you do not have to list them with details, but merely state that you have 25 or more accounts. You need to keep records in case the Treasury come back to you.
It has been suggested that even something like a TfL Oyster Card with some credit on it is a reportable account ... or a gift card from Marks & Spencer worth £25...
It has been suggested that even something like a TfL Oyster Card with some credit on it is a reportable account ... or a gift card from Marks & Spencer worth £25...
#43
Re: Quiet disclosure of FBAR
Sorry if my questions are a bit silly, but FBARs is an area I lack in knowledge. OH and I will be relocating to the UK in the next 6mo. We will likely be transferring upwards of at least $25k to a UK bank account. Assuming we are able to keep our UK account balance higher than $10k (if we don't spend it all to re-establish ourselves), are we going to have to report the account to this IRS? Are we going to have to pay taxes on it again, even though we already paid US taxes on it in the first place? What if we are adding UK earned income to the account, can we wind up paying US taxes on it? I wasn't sure what publications to look at on the IRS.gov site to find out the answers.
#44
Re: Quiet disclosure of FBAR
Sorry if my questions are a bit silly, but FBARs is an area I lack in knowledge. OH and I will be relocating to the UK in the next 6mo. We will likely be transferring upwards of at least $25k to a UK bank account. Assuming we are able to keep our UK account balance higher than $10k (if we don't spend it all to re-establish ourselves), are we going to have to report the account to this IRS? Are we going to have to pay taxes on it again, even though we already paid US taxes on it in the first place? What if we are adding UK earned income to the account, can we wind up paying US taxes on it? I wasn't sure what publications to look at on the IRS.gov site to find out the answers.
All income, overseas or US, is declared to the IRS on your yearly tax return. Unless you have a huge income sum your UK income will be either taxed in the UK or US but not both.
#45
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,529
Re: Quiet disclosure of FBAR
Sorry if my questions are a bit silly, but FBARs is an area I lack in knowledge. OH and I will be relocating to the UK in the next 6mo. We will likely be transferring upwards of at least $25k to a UK bank account. Assuming we are able to keep our UK account balance higher than $10k (if we don't spend it all to re-establish ourselves), are we going to have to report the account to this IRS? Are we going to have to pay taxes on it again, even though we already paid US taxes on it in the first place? What if we are adding UK earned income to the account, can we wind up paying US taxes on it? I wasn't sure what publications to look at on the IRS.gov site to find out the answers.