# Foreign Streamline and Federal Returns..yet again.



## zero2hero (Sep 28, 2018)

Guys can you pitch in ? I've gotten advice earlier from Bevdeforges but i'm still trying to navigate through our foreign streamline procedure compliance..

Ok the outfit i hired filed the FBAR's and returns from 2014-2016 (we used turbo tax and paid the estimated tax and processed the tax form under "Married Filing Separatley" for 2017. The outfit assured us that we would still be in compliance for filing the form 14653 (to meet the 330 day rule within the last 3 years) even though the extension we applied for 2017 federal returns, expired before they filed the FBAR's and amended federal returns...i hope this is making sense..

So fast forward to today, the foreign streamline (including FBAR) is complete, however our 2017 federal returns and FBAR is not...we owed money when we calculated the 2017 returns as MFS, but if we change it to MFJ (we had personal problems with my wife so initially filed MFS) to MFJ, we would end up getting a refund..here is where it gets tricky.

I read somewhere (i believe it was the IRS website) that "if you attempt to get money back (however legally) while pursuing the streamline amnesty procedure, the IRS may not look favorably on our streamline application.

Our goal is to pay LESS to get our federal returns done for 2017, i believe if we submit the returns as MFS, they may ask that we do a separate return for my wife, even though she did not work in 2017, our goal is not to solicit a refund but to get the federal/fbar returns done as economically as possible.

Sorry if its hard to follow my story, but please let me know if its confusing.
Brgds
zero2hero


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## Bevdeforges (Nov 16, 2007)

First question here is: is your wife subject to US taxes? Or is she a "non resident alien?" The main reason to file MFS is for a US citizen who is married to a NRA. Switching filing status to MFJ for the sake of a refund (or where it looks like that is the motivation) is probably not a great idea. But if your wife is a NRA, they can't ask her to file a return.

The other key thing here is going to be where you are filing from - outside or inside the US.


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## Zeroz (Nov 5, 2018)

She is a green card holder, currently lives in US andworked in U.S. in 2017. So the foreign streamline was filed here in USA . I was not employed in 2017. The original concern we had is if we did the 2017 returns, will we be charged TWICE (one return for wife, one return for me) keeping in mind this is tied in with Foreign streamline procedure..the outfit i hired charges almost $400 per federal return + FBAR for 2017.


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## Bevdeforges (Nov 16, 2007)

OK, it you're living in the US, you should probably file joint. Filing separately is almost always more expensive tax-wise unless one or the other spouse is not subject to filing (i.e. because they are a NRA). 

If you've been living in the US all this time, I would seriously consider filing jointly for all the years of your Streamlined back filing where you both lived together in the US. Even if you were unemployed in 2017, you should really file jointly due simply to the larger deductions and exemptions.


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## Nononymous (Jul 12, 2011)

If you're living in the US, it's the *Domestic* Streamlined Program you want. The Foreign Streamlined Program is for non-residents.


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## zero2hero (Sep 28, 2018)

*.*

Me again..i need your collective wisdom/thoughts about this if i may (again)..Ok so the wife is currently in Austria, if you recall from out last discussion• In 2017 I got an email (auto generated email every account holder gets) to update my data, including address. I did not responded to that letter and subsequently the bank followed up with a W-8BEN form..We eventually filed the Streamline procedure here in the States and also FBAR. The streamline package was mailed to the IRS just over 4 weeks ago, and FBAR done electronically about 5 weeks ago. While we are concerned that the bank (Bank Austria) may freeze our account if they dont hear from us soon, we also are concerned that if we prematurely respond to the bank before we know we are in the clear with regards to the streamline amnesty with the IRS ( my understanding is IF you dont hear back from the IRS within 2 months, then no news is good news), the bank may rush of to report our account to the IRS...although technically we did beat the bank to the punch by reporting it to the IRS first, still, the concern lingers..

My wife will be in Austria for exactly one more week, and we are wondering if she should walk into a branch and furnish them with MY information..i believe they want my SS# number but ofcourse they may ask for much more than that.

What to do..
thanks


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## Bevdeforges (Nov 16, 2007)

The bank needs a W-9 or W8 BEN for their own records. Those forms (or the bank's own version of them) stay with the bank and are not submitted to the IRS or anyone else. 

And, chances are, the bank will report your account(s) to the IRS in any event (just without your SS# if they don't have it), simply to show that they are doing their "due diligence." 

At this point, there is no cross checking between whatever you did (or didn't) report on your FBAR and what the bank does (or doesn't) report. Give them the information they want and let them worry about what to do next.


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## zero2hero (Sep 28, 2018)

I just spoke to my wife, she wants to go to the branch and submit the W-8BEN, with Austria you never how many roadblocks they're going to throw at you so will need to do it asap. Is there anyway to find out if a bank has already alerted the IRS about one's account? Short of asking them directly, but that may sound a bit fishy I suppose..we originally wanted to wait 8 weeks before approaching the bank but she went be there that long.


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## zero2hero (Sep 28, 2018)

Typo- wont


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## Bevdeforges (Nov 16, 2007)

Just do it. It's not a matter of the bank (or anyone else) reporting YOUR account to the IRS. The reporting they do is a mass one, where they report the year end balances of all accounts that are held by "US persons." Or suspected US persons (i.e. those with US mailing addresses, those with US birth places, etc.)


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## zero2hero (Sep 28, 2018)

Thankyou for the swift replies Bev..somehow i feel very relieved to have written you about this and your subsequent replies has encouraged me to just go through with it and get it behind us..not to mention the undue stress this is currently causing my wife, i will speak with her again and instruct her to just go through with it. Hopefully she can furnish them with most of the info they may require about me, the W-9 they sent us had our old Austrian address pre-filled out so we will need to let them know we are back in the USA, hopefully there wont be too much Austrian red tape, (like my wet signature on the 
W-9 form..ofcourse i can always fax but hopefully she can get it done within the one week time she has left.

Taking my hat off to you as we speak


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