# FBAR advice



## stanb5 (May 19, 2012)

I recently found out about fbar reporting. I have always checked no for foreign accounts not understanding what this is about. The last time I filed taxes was 2 years ago and checked no foreign accounts and this year I must file. I have had over $10,000 for quite sometime but didn't know about this law.
Any advice as I now must file and must check yes for foreign accounts. The last 6 years I had no tax and should I backfire the fbars and claim ignorance?


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## BBCWatcher (Dec 28, 2012)

You have three basic options:

1. Continue not filing. Since you are now aware of your filing obligation, there's a risk of prosecution for non-filing. That risk is becoming more serious as governments cooperate more in sharing financial data.

2. Participate in the IRS's streamlined program. You may want to do so if you need to filing amended IRS tax returns changing your answer(s) on any IRS forms.

3. File the FBARs late using the standard procedure for late filing. At present unprompted, voluntarily late FBAR filings are not attracting penalties. You can also file amended IRS tax returns if necessary to change your answer to any inaccurate information you provided previously to the IRS.

Option #3 seems like the best option in the circumstances and in my view, but it's up to you.


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## Bevdeforges (Nov 16, 2007)

The hard core provisions of the FATCA rules (including the bank reporting from non-US banks) go into effect this year (2014) in most countries. Depending on just how far over the $10,000 cumulative threshold you are, you could simply start filing this year (i.e. for 2013) and keep filing going forward. Except for those who appear to be hiding something or evading taxes on their overseas accounts, it's unlikely they are going to spend any great amount of time and effort checking prior FBAR filings simply for reporting omissions. 

But, as with all things tax related, you play the game and you take your chances. 
Cheers,
Bev


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## stanb5 (May 19, 2012)

I have around 150,000 in 2 accounts and this will be the first time to file an fbar. Would it be best to send 6 years prior fbars and also amended returns to correct checking no? I have read they require 3 years of amended returns. 
My main worry is the checking no when I had an account . For the last 3 years the unreported bank interest would not increase my tax as I did not have any tax. It would only have an effect on my 2007 return for $22.


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## Bevdeforges (Nov 16, 2007)

If the unreported bank interest won't affect your tax situation for the prior years, I really would NOT bother to file amended returns. There are bank accounts out there (specifically, checking accounts) that don't pay any interest at all. Report the bank accounts on the FBARs and get on with your life.

At least at present, they do not cross check - in part because they can't really. Your reported high balance in one account could have been in there for 1 day and not generated any interest for any number of reasons. Concentrate on filing the FBARs and just be sure, going forward, to include your bank interest on your US returns.
Cheers,
Bev


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## Bevdeforges (Nov 16, 2007)

If the unreported bank interest won't affect your tax situation for the prior years, I really would NOT bother to file amended returns. There are bank accounts out there (specifically, checking accounts) that don't pay any interest at all. Report the bank accounts on the FBARs and get on with your life.

At least at present, they do not cross check - in part because they can't really. Your reported high balance in one account could have been in there for 1 day and not generated any interest for any number of reasons. Concentrate on filing the FBARs and just be sure, going forward, to include your bank interest on your US returns.
Cheers,
Bev


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## Bajskorv (Apr 22, 2013)

BBCWatcher said:


> You have three basic options:
> 
> 3. File the FBARs late using the standard procedure for late filing. At present unprompted, voluntarily late FBAR filings are not attracting penalties. You can also file amended IRS tax returns if necessary to change your answer to any inaccurate information you provided previously to the IRS.
> 
> you.


Hello,

I'm about to file late FBARs (2008-2011) for accounts totaling about 100-120k in Switzerland (where I live for ~15 years). I filed 2012 last on time last year by the old method. I filed my 2013 last week with the new electronic format. 

Here's my question - there is a dropdown box on the new PDF where one can put choose the reason that the reports are being sent late. There is a response "Did not know that I had to file" or there is a an option "other" which allows the me to give an explanation to why they are late (up to 750 characters allowed). In the explain that I was not aware I had to file until last year. That I filed last year promptly upon learning of the obligation. Also want to point out that I'm a bona fide resident of a foreign country. And that I have/had a modest salary and have not owed US taxes since living here. Do you think it helps to explain all that? Or does it just mean that my reports will attract more attention? Ideally I would have liked to not file these prior reports, but my bank here is demanding proof of compliance. Proving my 2012 compliance was not good enough for them... 

Any advice would be appreciated. 

Thanks,


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## BBCWatcher (Dec 28, 2012)

It sounds like "Did not know that I had to file" is a truthful answer, so that's what I'd choose if so. If the U.S. Treasury wanted elaboration they'd explicitly ask.


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## Bajskorv (Apr 22, 2013)

Thanks BBCWatcher, seems like sound advice. Will send them tomorrow with "Did not know I had to file".


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