# Late filing FBars and fine



## FilingLate

Anyone had to pay any fines yet? I am just curious i hear about all the fines that people had to pay.

If anyone has backfiled Fbars and 1040x can they share their stories it might help and give boost to a lot of us who are about to.

Thanks


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## Nononymous

No. Nobody on this forum has ever reported an FBAR fine.


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## FilingLate

Have an appointment with another lawyer but their are also someone on serbinski forum who agrees with this lawyer
Will report on Monday


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## Nononymous

Round about now, I'm beginning to think of this.


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## Bevdeforges

I think the main issue here is that there are not *a lot* of folks who either have been caught out and fined/penalized nor a lot of folks contemplating backfiling FBARs and 1040x at the same time and for the same periods.

I did a little research online and could only find reference to individual FBAR fines as part of tax audits, i.e. income tax audits. So, maybe that will change in the future with the new regulations and reporting by the banks going into effect this year. But if your tax returns are relatively clean I really wouldn't worry too much about past FBARs.
Cheers,
Bev


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## BBCWatcher

I think DOJ had their first "pure" FBAR prosecution recently, though even in that case only the prosecution was pure, i.e. a separate, standalone process. The defendant was not pure -- he has, shall we say, a "colorful" history with law enforcement.

Anyway, my view is this is a good time to get past, current, and ongoing filings in order. There's still a standing policy that unprompted, voluntary, "innocent" compliance is encouraged and not penalized. Which makes sense, of course.


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## DavidMcKeegan

I also have not heard of any fines resulting from those who did not know about their obligation to file, and who came forward voluntarily. I think you are in the clear.


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## FilingLate

BBCWatcher said:


> I think DOJ had their first "pure" FBAR prosecution recently, though even in that case only the prosecution was pure, i.e. a separate, standalone process. The defendant was not pure -- he has, shall we say, a "colorful" history with law enforcement.
> 
> Anyway, my view is this is a good time to get past, current, and ongoing filings in order. There's still a standing policy that unprompted, voluntary, "innocent" compliance is encouraged and not penalized. Which makes sense, of course.



Correct the only thing that bothers me is those few hundred $ every year in interest that i made and did not report. I wouldn't have even found it out but a CRA agent contacted me and asked me to change my bank reporting from resident to Non resident and got a NR4 form did some research and found out about FBAR filings etc..
Thanks


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## FilingLate

Bevdeforges said:


> I think the main issue here is that there are not *a lot* of folks who either have been caught out and fined/penalized nor a lot of folks contemplating backfiling FBARs and 1040x at the same time and for the same periods.
> 
> I did a little research online and could only find reference to individual FBAR fines as part of tax audits, i.e. income tax audits. So, maybe that will change in the future with the new regulations and reporting by the banks going into effect this year. But if your tax returns are relatively clean I really wouldn't worry too much about past FBARs.
> Cheers,
> Bev




Hello Bev i think the issue is that i am a Canadian Cit and resident of US whereas others are US Citizen and resident of other countries. I think the tax man is more lenient to you whereas for me he/she thinks i am trying to hide money.

The accountants that i have talked to in Canada are telling me its not an issue but others here in US are suggesting that it can be an issue.
I will keep good folks here updated so we can assist or help anyone we can.
You guys do have a great website.
Thanks


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## BBCWatcher

Wasn't that interest foreign taxed anyway? If so, the U.S. tax owed could even be negative, meaning a potential IRS refund.

Also check the applicable tax treaty.

But if you've got small amounts of non-taxed but U.S. taxable interest to report, the interest and penalty is still pretty small. Check the IRS publications, and you can run a calculation.


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