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As long as there is no cash value on the policy, no.

Indexing is irrelevant for US capital gains.

One more point to remember is that all items (cost basis, improvements etc.) have to be denominated in $$ using the exchange rate at that time. Even...

Say. What ? I asked you a simple, civil question. If there is some published guidance from the IRS on this, I would welcome it. And why the hell would I use a phony name to contact the IRS if I had...

ATE -- has the IRS specifically ruled that an Indian employee retirement account is not considered a foreign trust ?

Also, an American person is required to report all transfers (i.e....

Yes, India has a double tax avoidance treaty with US. Since you are not paying taxes in India, you cannot take advantage of foreign tax credits (there is no double tax). You will have to pay full US...

Also note that any matching program from your company may have a per quarter or per pay period limit, so you may not get full match (if one exists) for your 100% contribution.

In general, I doubt...

1) Life Insurance policy with cash value needs to be reported on an FBAR form. I doubt Indian life insurance is any different.

2) Even if interest is not explicitly credited to your account, it...

1) Yes, you should have been declaring the dividends and interest on the account on your tax forms
2) Life insurance policies with cash value are considered financial accounts for FBAR purposes.
...

I just reread your message and it says that you are not staying in India now. In that case, you would not be subject to Indian taxes on earning in 401k/IRA. You may be subject to taxes in whichever...

No, Fidelity is wrong. You will be subject to taxes and penalty. And in any case, Fidelity will withhold 20% (but not the 10% penalty) when you withdraw.

Depending on how much income you expect...

No, it wouldn't be a primary residence in that case.

1) You have to pay taxes if you sell the apartment in Russia irrespective of whether you transfer funds to the US or not. If that was your primary residence for 2 out of the previous 5 years, you...

And to add: its not clear from your message whether the taxes you cite are merely those that were withheld or whether they were the actual taxes you paid. And your personal filing status (single,...

What refund did your return show as filed ?

Deepali, the FBAR has to be filed for ALL foreign financial accounts. That means ALL foreign bank accounts, irrespective of whether they have an associated US account. It also includes stock/shares...

If you were a resident (filed anything other than a form 1040NR) for tax purposes in the US, then you need to declare all income in India (salary, interest income etc.). You can take a credit for all...

The interest rate changes every 3 months, based on prevailing federal interest rates from. Its compounded daily. But for an approximation, you can use the formula suggested and let the IRS do the...

If your foreign bank account balance did not cross $10K at any time, then its not a problem and you can amend returns.

If it did for multiple years, then you have FBAR violations, which is...

You get a step up in basis to the time you inherited the property.

However. You should have filed Form 3520 when you inherited the property. If you did not, matters become more complicated.
...

Your employer would withhold taxes and send them to NY. There would be no withholding for NJ taxes. When you file your taxes,

1) First file a non resident NY return
2) Then file a resident NJ...

Penalties are very stiff

1) Civil Penalties for willful violation can be up to the greater of $100K or account size per violation. [ A violation is per unreported account per year, technically]
...

1) 2009 -- nothing to update, you can't take back a filed FBAR :)

2) 2010 -- Filing before June 30th is better, you should send the update today.

The situation you describe is very complicated and is in fact a real mess.

1) The foreign corporation is a CFC (controlled foreign corporation) by US tax laws and the shareholders should have...

The property was inherited when a GC holder (hence a US person).

It definitely needs to be reported on form 3520 if its FMV was > $100K when inherited. Given that property prices in India are...

The FBAR for 2010 definitely needs to be filed before June 30th 2011. There is still time.

For other FBARs, in a sense it doesn't matter whether you file before June 30th or not. They are already...

One clarification -- in 2009, the penalty was occasionally reduced (although almost never waived entirely) under the so-called FAQ 35 argument occasionally. It was still not that common though, and...

I have no first-hand (or second hand for that matter) experience with a 12.5% fine, because it is new for this VD period. I don't see how anyone could have any experience with the OVDI since cases...

indianinusa: I think the Citibank account is very likely held by Citibank India, which is technically a foreign bank, so in the FBAR for 2010, you need to report it and the other account as well in...

Indiainusa -- rereading your note though, its not clear whether your maximum aggregate balance was greater than 10K in previous years, or only your unreported account was greater than 10 K. If...

ATE, are you also going to modify your guidance suggesting that "[I]the 25% penalty can be and is normally waived under the IRS's Voluntary Disclosure program.["/I]

In fact, the IRS has said that...

Under the IRS's formal OVDI, there is NO indication that the penalty will be waived if there was any income on an unreported account (no de minimis sum). Its only waived if there was NO ($0) income,...

If you have a cumulative balance > 10K for only 1 year (2010), then you can file the FBAR by Jun 30 2011 and you are OK. The interest for the last few years is likely too small < $10 too be worth...

Most offshore banks wouldn't send 1099-INTs anyway. The bank you got it from was likely an American bank with a branch in India.

There are hefty penalties for not filing FBARs, but since you...

The FBAR filing requirement holds if you have a foreign financial account over $10K. If your foreign bank account had more than that when your friend wired to it, then you need to report that sum....

The FBAR requirements pertain to reporting all foreign accounts if the maximum total value of accounts > $10K . If your foreign account surpassed 10K, then you must report it. The source of the funds...