# Late Fbars and unreported income



## signedup1 (Jun 25, 2016)

Greetings, 

Background info:

Came to the US on an F1 for college in 2009. Got married in 2013 to a US citizen. Filed joint US tax returns after getting married. Received a green card in 2015. 

For the 2013 and 2014 tax years, I did not report about $150 CDN in interest earnings on my joint US tax returns. I did not fill out schedule B's on those returns. I have around $20,000 in savings, checking, and CD, and retirement accounts, but I did not file Fbars for those two tax years as I did not know about or understand the account reporting requirement. I did report the foreign interest this year and will file and Fbar this year. 

I did not report the interest income because I didn't think I had to, and I was worried about being double taxed and so I didn't want to report it (which was just stupid in hindsight since things get converted when I file Canadian taxes).

I spoke with a lawyer about the situation and he said that as an F1 student I would not have to file the Fbars or had the reporting requirement. 

I feel awful, and worried. I want to make things right. 

Questions I have: 

Was the lawyer wrong since I was likely a "US person" and had been in the US legally for 5 years when filed the joint tax returns?

I think that streamlined ovdp is not an option because my actions would be considered willful. Is this the case? 

Is it illegal to file amended returns and late fbars? Things I read from lawyers seem to say "yes". 

Is ovdp-opt out an option? Does OVDP-opt out render me guilty of civil tax crimes?

Green card is only good for two years because we hadn't been married long enough when I received it. Will an OVDP hurt my immigration status? Will the OVDP-opt out hurt my immigration status? 

Lastly (I think) I have not yet filed the 2015 fbar. If I quiet disclose, should I file the late fbars at the same time as the 2015 fbar?

Thanks!


----------



## Bevdeforges (Nov 16, 2007)

Honestly, I wouldn't worry too much about $150 in interest on a joint return. You can certainly file an amended return for those two years, but chances are it wouldn't change your taxes due or your refund by enough to worry about. 

Ditto for the $20,000 in foreign accounts, though you can very easily file a "back" FBAR for those two years if it will make you feel better. There's even an option on the FBAR form for "I didn't realize I had to file" for the line where they ask you why you're filing late. While they like flashing around the penalties, there is no indication that they are pursuing anyone for failure to file on accounts in prior years, where the balances in question are less than the high six-figures.
Cheers,
Bev


----------



## signedup1 (Jun 25, 2016)

Thanks Bev. A big concern of mine is getting this resolved with integrity. I feel torn about what the right way to achieve that is. 

If I disclose, should I file the past fbar before, after or at the same time as the current fbar year that is due in a few days? Does it matter? And is it legal?


----------



## Bevdeforges (Nov 16, 2007)

Whether you do your backfilings before or after the current filing doesn't really make much difference. Actually, unless you have hundreds of accounts or something, it should only take about 10 or 15 minutes for each filing, tops. If you get on it right away, you'll have everything in before the June 30th deadline.

And yes, it is "legal" to backfile late. Probably better than not backfiling at all, in fact.
Cheers,
Bev


----------

