I have been filing 1040s for years but only recently found out about FBAR.

From what I gather, the best thing to do is to submit the old FBARs (6 years) to Detroit. I am gathering the info for that now.

However when going through old bank papers I have found two closed foreign ank accounts where I had earned interest that I didn't report on my 1040s. Annoyingly, one is for 2012 that I filed just YESTERDAY in the mail. The other is just 2011.

I'm scared now because I am drawing enough attention to myself with the FBARs. The interest is about 1000 USD per year, which given my overall income wouldn't impact my tax bill - it'd still be 0.

Should I be filing 1040X for this, or since the tax impact is neutral, should I just leave it?

How would both options impact me filing the FBARs?

First, amend the 2011 and 2012 returns to add the interest to the tax return.

Second, submit the 2012 FBAR, mailing it CERTIFIED MAIL RETURN RECEIPT so you have proof that the IRS got it.

Finally, submit the "quiet" submission of FBAR, stating in the cover letter that you were unaware of the requirement and that you are submitting past-year submissions to get "caught up". Request a waiver of all penalties for failure to report.

Mail the quiet submission CERTIFIED MAIL RETURN RECEIPT so you have proof that the IRS got it.

If the FBAR balances are LESS than $200,000 each year, the odds are the IRS will accept the quiet submission at face value, file it and go on to the next case. You MAY get an acknowledgement from the IRS, but probably not (which is why you need the return receipt as proof of submission).

Thank you. What if the FBAR balance appears to be more than 200k per year, because I am always transferring money around to get the best deal on interest rates etc? The actual total is much less, but 50k is being reported in both accounts 1, 2, and 3... :( What will they do then?

Should I do the amendments first, or can I do FBAR at the same time? Is there a reason for doing the 2012 one before the prior ones? Surely if I mail 2012 one first and then the priors, they'd think I knew about it before as I complied this year? (I had no idea until this week.)

Thanks again!

You take the highest aggregate balance on a set date to avoid the pitfall of reporting the same income twice.

If you email me, I will explain the process in detail.

Email sent, thanks!

A quick generic follow up: do UK pension plans need reporting? I can go in and add money to it myself, but it was created and is an employer pension from my work. They say employer ones don't, but like any UK pension I can go in and deposit money (can't remove it, though).

Annoying if I do as then it is more to report!

Quick follow up. Just realised this minor interest issue also applies to 2010. Again, the tax impact is neutral, I would not have owed any extra taxes. The amount of interest here is even less, like 600. Is it worth amending for that as well, or should I just leave it? Am scared of some sort of full blown audit!

If the pension is a PUBLIC pension, like the Indian Provident Fund or a givernment equivalent to Social Security, it does not need to be reported.

However, private pensions, annuities, insurance with cash value, etc. Do have to be included on the FBAR and FATCA requirements.