I am a US Citizen, who married an Indian (NRA) woman. In 2011, we both inherited a bank account, which is more than $10,000. Right now the account is only in the name of my wife and she has no obligation to report this account to the IRS.

If I file my 2011 return Filing Jointly with an NRA spouse, 2 questions arise:

1. Do we need to get a ITIN for her before filing or with filing?

2. Does FBAR apply in this case to both of us even though my name is not on that account? It is past June 30, 2012, so will there be a penalty for late filing of the TDF Form to Dept. of Treasury?

Thanks.

1) With the filing, you submit Form W-7 to apply for the ITIN.

2) Yes, the FBAR applies if your name was EVER on the account irrespective with how you filed, because of your U.S. citizenship. If your wife's name was the ONLY name on the return, and you file Married Filing Separately, then no FBAR is required.

However, if you file jointly, then SHE must file the FBAR. File it late with a cover letter; the IRS will waive any penalties because the amount of money involved is so small.

If you need professional help to either file the return, submit the W-7 or file the FBAR (or all three), email me at the email address in my profile (if you cannot see my email address below).