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FBAR voluntary disclosure h1b
Me and my wife are working here on work visa(H1B) from 2008. I was not aware that the interest/income earned in India is taxable here in US, so we haven't shown this in our 2008 and 2009 tax return. We have few accounts in India(most are opened before coming to US) and we usually transfer most of our savings to Indian account. Unfortunately I have transferred most of my savings in 2010(almost 70- 80%). Now my question here is, if I file my 2010 return properly and do a voluntary disclosure for 2008 and 2009, do the 25% FBAR penalty is be considered only on 2008 and 2009 or for all three years.
I am also looking for professional help to proceed with voluntary disclosure. |
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Download the FBAR forms and submit them for 2008, 2009 and 2010, under a cover letter requesting waiver of any and all penalties for late submission. Unless you had a HUGE amount of money in those foreign accounts, the IRS will grant the waiver and send you a warning letter stating the requirement to submit the FBAR each year your foreign accounts meet the minimum dollar levels.
If the interest earned each year exceeded $100, then amend your2008 and 2009 returns. If the interest is LESS than $100, do not bother, because the added income falls into the de minimis category as being too small to matter to the IRS. |
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Hi,
I am working in the US, and have been filing resident tax returns since 2009. I was not aware of the FBAR filing requirements, nor did I report my foreign income for the year 2009. My foreign income for the year 2009 was ~$300, and the aggregate sum of all my foreign account holdings was ~$22,000 My options are 1. File amended 2009 returns, and send the delinquent 2009 FBAR form, along with the 2010 form to the Treasury department. Attach an cover letter, explaining that I was unaware of these requirement, and that I have amended my 2009 return, and request for waiver of penalties 2. Go for the voluntary disclosure (OVDI) I really appreciate any help provided Thanks, |
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For only $300, the amended return is NOT really that important, so do it when yo have the time; there is NO hurry.
However, the FBAR issue is another matter entirely. Submit the FBAR for 2009 and 2010 with the cover letter, and ask for a waiver of penalties. It is likely you will get the waiver given the inconsistent nature of theIRS guidance on this issue for the past several years. If you need professional help filing your return, email me at [email protected] or [email protected]. |
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