# Yet another FBAR question/concern



## sunifyr44 (5 mo ago)

Hi everyone. Like so many, I failed to file FBARs on my tax returns because I forgot that I had a UK account.

I have one pension in the UK. I don't contribute to it, it just sits there and tbh I frequently forget that it exists because I can't do anything with it. It's small - currently valued at 11k (in pounds). It was under $10,000 when I moved to the US, and for the first few years I was here. Since about 2015/16, it grew over $10,000 without me realizing.

I'd really like to correct this issue, since it was a genuine mistake. I understand that I can file the delinquent FBARs, as long as I declared the account on my 1040. Is declaring it under Schedule B sufficient? Or was I supposed to declare a $ amount somewhere? And should I file delinquent FBARS for every year the account went over 10k?

I would really appreciate some guidance on this, since it's causing me a bit of anxiety.


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## Moulard (Feb 3, 2017)

If it will help you to sleep, by all means complete fbars for up to 6 years or the year which it exceeded 10k USD, add a reason and submit them.. that will be the end of it.

As to reporting the growth in the fund on your tax return.

Assuming you are not of retirement age, then I believe that Article 18 (1) of the tax treaty will mean that the growth will only be taxable at such time as a distribution is made.



> 1. Where an individual who is a resident of a Contracting State is a member or beneficiary of, or participant in, a pension scheme established in the other Contracting State, income earned by the pension scheme may be taxed as income of that individual only when, and, subject to paragraphs 1 and 2 of Article 17 (Pensions, Social Security, Annuities, Alimony, and Child Support) of this Convention, to the extent that, it is paid to, or for the benefit of, that individual from the pension scheme (and not transferred to another pension scheme).



Its worth noting that the savings clause in Article 1(5) protects Article (18)1 which would otherwise allow the US to tax its citizens and permanent residents as if the treaty was not in force.

I am not really familiar with the US-UK treaty and I know its pension articles do not follow the US model... but if my reading is correct then....

I would probably do nothing given no taxable income has been generated. 

Once upon a time you were required to report non-taxable income like this, but the instructions on the 1040 have changed and they now state that unearned income exempt from taxation by treaty does not have to be reported. 

Technically you would have been required to File Schedule B to complete Part III to declare that you have a foreign accounts, but that is likely to be the end of it.

You can only amend 3 years of tax returns, you could file an amended Schedule B, 

Personally I would just do quiet compliance and file it moving forward and not worry about a 1040-X.


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