Ask Experts Questions for FREE Help !
    yuman1234's Avatar
    yuman1234 Posts: 2, Reputation: 1
    New Member

    Mar 4, 2011, 11:46 PM
    FBAR on inheritance $ kept in a foreign account
    My parents have an account in Hong Kong that was set up to receive the inheritance $ from my mom's parents when they passed. The account has been idle except when they visited in Hong Kong in 2003(?) and use some of the $ for spending $ while they visited.

    They never filed any FBAR or FORM 3520 because they weren't familiar with the forms and they knew inheritance $ is not taxable. The account balance did earned interest (account balance is about $150K) but they never received any tax forms from the banks.

    My question is if they filed the missed FBARs and amend their tax returns (I have a feeling there won't have any additional tax liability even if the interest from the HK account is added since they are retired and has no other source of income except social security), will they be tagged with any penalties?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert

    Mar 5, 2011, 12:46 PM
    The IRS has been lenient about imposing fines for failure to submit the FBAR requirement. A phone call to the IRS FBAR Hotline at 1-800-800-2877 should get you an answer s to how far back they should go to submit the forms for past years.
    yuman1234's Avatar
    yuman1234 Posts: 2, Reputation: 1
    New Member

    Mar 6, 2011, 09:01 AM

    Thank you very much for the feedback. I will call and find out!

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Foreign inheritance via relative [ 10 Answers ]

Hi all, I (US citizen residing)received a partial foreign inheritance via a US relative(my brother). Source is proceeds from my decessed alien mother in Japan. Through her will , the house was put in my brothers name. Through 2 years of setting up POA's and a lawyer to have the house's deed...

Foreign Property Inheritance [ 3 Answers ]

Hi. I am a 33 yr. oldPhilippino with an American husband (legally married in Ottawa, Canada). Yes, it's same-sex marriage. Aaanyway, my husband already made the will & stated that I will be the sole beneficiary of his properties. BUT.

Taxes on foreign inheritance for US citizens [ 2 Answers ]

If I am a US citizen inheriting a large sum of money from a distant relative, who lived in a foreign country, such as Spain, what kind of taxes and what percent would I have to pay. Also can we get names of US lawyers that would handle a situation like this?

Inheritance From Foreign Country [ 1 Answers ]

Long, lost family member died in 2002 in Malaysia. I am sole surviving heir. After paying for services rendered in Malaysia for transferring the estate to me, my net gain expected to be $1.4MM. Since only $1MM is excluded from inheritance or income taxes on deaths occurring in 2002, what...

View more questions Search