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    john.smith's Avatar
    john.smith Posts: 2, Reputation: 1
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    #1

    Feb 11, 2011, 11:01 PM
    Help with FBAR reporting requirements!
    Hello I am in desperate need of tax help!

    I am a European Union citizen and I live/work in Europe and have 2 European bank accounts (joint with my father) above $10,000. In 2002, I obtained a permanent resident visa card or green card (good for 10 years) but never moved to the U.S. because my spouse was stationed in Europe. I did move with my spouse to the U.S. in 2009 and lived there for 10 months with my spouse (a U.S. Citizen) but moved back to Europe because I could not find employment. My spouse and I have filed joint U.S. returns prior to me obtaining my green card and always included my European work income. We never filed FBAR's or reported on our 1040's the interest earned in the foreign bank accounts because we didn't know about this requirement. I now know the 1040's need to be corrected but since I get the foreign earned income exclusion and foreign tax credit I am hoping we won't owe any back taxes. Do I have a requirement to file the FBAR paperwork since I live and work in Europe? In pub 519, I found information about the tax treaty and tie breaker rules? Can I use these and claim on our U.S. taxes that I am now a Non-resident? I pay European taxes on all my work income and bank interest. We always brought our taxes to JAG in Europe and they never told us about these requirements. I don't want to pay a 25% penalty on my joint bank accounts since I did not know about this requirement and they are taking European Union money that my dad and I earned while working and living in Europe. Is there anyone that can help me with this tax matter?

    Thank you!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 2, 2011, 12:48 PM
    How much are in the European accounts? If it not over $100,000, the IRS has been accepting past-due FBARs and been waiving any penalties for such accounts.

    If you need professional help filing your return, email me at [email protected].
    john.smith's Avatar
    john.smith Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Mar 7, 2011, 09:40 PM
    From 2003 to 2008 they were not over $100,000. But for 2009 and 2010 they did go over $100,000. In IRS Pub 519 it states that under countries with a tax treaty they have to use the tax-breaker rule and the person is a non-resident for IRS taxes and they must file 1040NR. Does this waive the FBAR rule?

    Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 8, 2011, 09:32 AM
    If they are non-resident for income tax purposes, then the FBAR requirement does NOT apply to them.
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