# Streamling OVDP process - tax missing for one year



## taxverdict (May 3, 2016)

Hello Members, 

I have been maintaining foreign bank accounts since 2014 with balance more than $10,000. I came to know about FBAR law recently and have filed FBAR & paid taxes on the interest earned for year 2015.

I also want to pay the penalty (if required) and the taxes for the interest earned (via foreign bank account) in year 2014. Do I qualify for the streamline OVDI?

What is confusing is OVDI says that you need to amend past 3 years of tax returns and my case is only applicable for one year. So what is the best process to rectify my honest mistake for missing FBAR for year 2014.


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## Bevdeforges (Nov 16, 2007)

If you're talking about a single year's error, you shouldn't be bothering with the streamlined program. File an amended return for 2014, pay the tax and any penalty (mostly interest charges) and be done with it. If you've got zillions stashed away in your overseas accounts, you could be talking a hefty bill, but for just a single year, and especially with the interest rates worldwide recently, if you're talking maybe a few hundred or even a couple thousand dollars in interest, it should be quicker and easier to just amend the 2014 return.
Cheers,
Bev


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## taxverdict (May 3, 2016)

Bevdeforges said:


> If you're talking about a single year's error, you shouldn't be bothering with the streamlined program. File an amended return for 2014, pay the tax and any penalty (mostly interest charges) and be done with it. If you've got zillions stashed away in your overseas accounts, you could be talking a hefty bill, but for just a single year, and especially with the interest rates worldwide recently, if you're talking maybe a few hundred or even a couple thousand dollars in interest, it should be quicker and easier to just amend the 2014 return.
> Cheers,
> Bev


Thanks Bev. You are right, I earned less than $1500 as interest.

UPDATE: I spoke with an IRS agent this morning (via Streamline OVDP hotline) and he said that for people who missed to report the foreign income for less than 3 years, need to only amend the return for the years they have earning. For rest of the years, they need to mention "Tax Return Compliant"


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