# FBAR & Schedule b



## mikey_2017 (Mar 25, 2017)

Hello,

I have a foreign account that generates less than 50 cents every year. I have just filed late FBARs for this account for the last 2 years , but have not filed schedule B's with my tax returns since they were never generated by my CPA. Do I have to amend my last 2 tax returns to include schedule B part 3 knowing that it doesn't make any difference in my final income "less than 50 cents rounds off to 0 anyway".
any advantage if i do amend it, as in avoiding some penalty?
any downside if i do amend it as in attracting more scrutiny, audit etc...?


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## Moulard (Feb 3, 2017)

Technically Yes, you probably should file a 1040X with Schedule B attached. I assume that this account has a balance below your Form 8938 reporting threshold.

Amended returns are at a higher risk of audit and/or additional scrutiny because they are all manually processed, but if everything else is in order, the risk would be quite small.

Unlike FinCEN penalities, IRS penalties are mostly based on tax liability. So if there is no change to your tax liability there is no penalty.


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## Bevdeforges (Nov 16, 2007)

Frankly, I wouldn't bother. It sounds as if your account may actually be under the $10,000 filing threshold for FBARs anyhow - and while that doesn't really affect the need to file a Schedule B, if that's the only "omission" on your returns, it's highly unlikely they'll question it (if they even notice). 
Cheers,
Bev


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## Moulard (Feb 3, 2017)

I have assumed that it is over the FBAR filing threshold based on the fact that Mikey is filing FBARs. 

But ultimately I Agree with Bev here... Its why I said Technically. I was going to edit my original response, but got called away from the keyboard, and the time-limit expired.


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## mikey_2017 (Mar 25, 2017)

Hi Guys,
My bank account was above 10K in both years that is why i sent FBAR for this year and late for last year....so you guys thinking since missing a schedule B wouldnt affect how much i have to pay the IRS "in my case 0" and since i already filed FBAR form, i dont need to amend my 2 year taxes? & even if i do & i dont owe any taxes it wouldn't be a problem anyway?


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## Bevdeforges (Nov 16, 2007)

They're unlikely to notice if you submitted the Schedule B or not. OK, so you filed an FBAR. They apparently don't really even bother trying to match your FBAR up with your return unless there is something "odd" about your return.

I help a friend with her taxes, and she files an FBAR but has too little income to have to file a return. Been doing it this way for several years now and not a peep out of the IRS or Treasury. They really don't bother following up on this sort of thing unless they think there are some serious back taxes that are at stake.
Cheers,
Bev


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