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    NotFob's Avatar
    NotFob Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 9, 2009, 05:35 PM
    I made money overseas.so should I declare it?
    In Nov 2007 I sold stocks in Europe for a gain of approx 15000. I wired it to my US account. The secrurities firm overseas does not report to the IRS. Should I declare this money and face the music or is there a very good chance that all this Fbar stuff will ignore a little fish like me and go after the big asset guys?
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #2

    Nov 9, 2009, 07:01 PM

    You should report it before the IRS finds out about it. They tend to be lenient when you bring the omission to their attention. If they find out about it without you telling them, they are much less lenient and much more distrusting.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Nov 10, 2009, 12:14 AM

    On your tax return, you must delcare your worldwide income.
    For 2007, you need to file amended tax return. Report stock sales on schedule D (Form 1040). If you paid taxed in Europe, then you will file Form 1116 to claim foreign tax credit.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Nov 10, 2009, 10:54 AM
    Agreed; report it by amending your 2007 return using Form 1040X and providing a Schedule D and Form 1116 if you paid taxes on the capital gain in Europe.
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