# Filed FBARs but not tax return



## the3rdman (Nov 19, 2013)

Hello, 

It's been a little while since I last posted, and yet it seems I've fallen into the trap of tax negligence yet again, embarrassingly so. 

Whether it's something I want to avoid doing, or maybe due to its frustrating tedium, I find myself yet again in the land of back taxes. 

For the last couple of tax years, I went through the whole process of filling out my tax returns, but through sheer neglect, and in knowing I didn't owe anything, I never filed. So, here we are with the 2019 tax year and a few years behind.

However, the stress and worry around FinCen 114 forced me to get on the ball, so I've filed my FBARs each year since I broke the 10k ceiling.

That being said, I wanted to ask if there is any harm in filing an FBAR and not filing taxes? I know that one unfortunate consequence of this unorthodox filing is that I am no longer eligible for the streamlined process, since I have filed my FBAR, so the 'non-wilfull' stance is now void. 

And are the 1040 Schedule B and FBAR linked at all other than through the auditory process? Meaning, will they notice filed FBARs, but no tax returns?

I was hoping to get any advice on the best way to move forward? Should I file my back taxes plus 2019? Or should I just file 2019, and be done with it?

Thank you in advance for your help and consideration. 

Be well!


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## Bevdeforges (Nov 16, 2007)

Very generally speaking, there doesn't seem to be much of a return for the IRS in matching FBARs to tax returns filed or not filed - especially where there is no prospect of reclaiming a significant amount of back taxes. There are also a number of valid reasons why you might have to file an FBAR even if you aren't required to file a tax return. 

You could always file your 2019 (late) - because the penalty for a late filing is a % of the tax due and if you don't owe anything, any %age of 0 is still 0. Or you can just skip it and resolve to file next spring (i.e. for 2020) or not, depending on your plans for maintaining your ties with the US.


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## 255 (Sep 8, 2018)

the3rdman -- As Bev said, there does not appear to be any active comparison of FBAR submissions and 1040 filings, at this time. As she suggested, if you want to come into compliance -- just file the back taxes. I have a friend that was negligent in filling for over 20 years and she filled for the last 7 years, one at a time (on the advise of counsel,) to come into compliance, and never heard a peep from the IRS. Cheers, 255


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## Nononymous (Jul 12, 2011)

The conclusion I'm coming to after tracking this issue for a number of years is that the IRS doesn't care much about anything non-residents do if there isn't at least a six-figure return in it for them. Whatever combination of FBARs and tax returns one files or doesn't file likely generates no response unless there is a clear error.

This isn't terribly helpful advice, but given that you owe no taxes and FBAR penalties are essentially fictional, file whatever you need to file to sleep nights. Whether it's all, some, or nothing, the outcome will be the same - you won't hear back from Uncle Sam.

Don't forget, this year at least you have a $1200 incentive to file something (assuming that you qualify) and possibly double if they get around to doing another stimulus benefit.

It's perfectly reasonable to file FBARs but not tax returns. If you have little or no income but more than $10,000 in the bank, that is correct and compliant. Furthermore, if you filed FBARs but not returns then you don't need the streamlined program if you never would have owed taxes anyway. The only thing streamlined does is take away the hypothetical threat of FBAR fines.


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## Jca1 (Aug 7, 2019)

From everything I've seen, FBAR examinations usually start as a result of an audit of an income tax return or someone participating in one of the disclosure programs (far less likely in the newer programs). I have never heard of the fact of an FBAR being filed by someone with no income tax return leading to an investigation. There seems to be no reason why the IRS would start an audit of you: they likely have no way of knowing whether you are required to file a return or whether any tax would be due. 

I don't think filing an FBAR precludes you from participating in the streamlined program. It could be that you were unaware that you were required to file a tax return if you were out of the country and owed no tax, making your conduct non-willfull. However, as others said, the streamlined program might not be necessary.


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## the3rdman (Nov 19, 2013)

Hello all,

Thank you kindly for all of the quick replies; I really appreciate. 

I’m resting a little easier now given your feedback. Im glad I’m at least half in compliance. 

As was mentioned, the $1200 stimulus check is an appealing incentive to get my taxes in order, so will give it a go. 

Out of curiosity, when filing back taxes, is there any harm or foul of doing them individually over time? Or is it more beneficial to lump them altogether? If individual, should I start newest first and move back?

Thank you again for all of your help. 

Be well!


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## Nononymous (Jul 12, 2011)

I don't think it matters particularly which order you do things. I would file 2019 to get the money, then file the rest afterwards, or not bother going back.


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## 255 (Sep 8, 2018)

the3rdman -- I agree with Nononymous; if it was me, I'd file 2019 now, then file each of the back years incrementally (if you were truly required to file for those years,) leaving a few weeks space between each one. After 2019 -- I'd start with the oldest first. The friend I mentioned earlier said she could either send them all at once, with a cover letter, or mail them separately. She leaned on the mailing separately to ensure each year was considered and tracked individually. Cheers, 255


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