# US Tax compliance... finally filed... whew



## KeithCAN1

Well it finally happened. 6 back years of 1040x forms in addition to my 2012 1040 was filed by my accountant last week. Cost a bundle but glad to get it done. Now the wait and hope that I don't get hassled. I'm hoping that because the 6 back years 1040x's show that I actually overpaid taxes by a net ~$100 clearly show I was not trying to hide anything.

I also called up the US Treasury Dept to see if they got my stack of FBAR forms I mailed back in June. I was debating doing this since I was thinking better to lay low. But I couldn't help it. Anyway they said they don't see anything but that if I mailed it in June, then they expect to see it in the system towards the end of October as they have millions of forms to go through.

So phase 2 finally complete (phase 1 was the stack of FBARs back in June). Now I guess phase 3 starts where I see if I get hassled (hope not!). Maybe if I am really lucky, I'll actually get a check from the IRS for the $100 I overpaid but I doubt it!

:fingerscrossed:


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## Nobledreamer

Congratulations KeithCAN1!
I know the feeling, have filed absolutely everything and it is a very great relief!!
There are rumors of an entire floor filled with boxes and boxes of FBARs in Detroit. I can just picture it....
FWIW, I have heard no stories of any expats in Canada getting hassled or even fined. Only those who entered OVDP/OVDI


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## KeithCAN1

Thanks! Had a great sense of relief when it was all done. I do have a small bit of anxiousness left hoping they receive it all ok and not hassle me but overall I'm glad that I've done all I can.


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## Nobledreamer

I know a lot of folks get absolutely no response so have no clear idea whether their returns have been received, etc. However, I sent my first four returns in mid-Dec 2011 and by mid-Jan had received a notice of FTF penalty with no amount! My first 3520 prompted a request for a portion of the 3520A (which I had already sent so thought all was in order).....I sent my 1040NR on time and early Sept received a notice for a small balance. So I feel pretty sure all is ok, I have never though, received anything about FBAR except acknowledgements of receipt the last two years done online.
As many say, "no news is good news."


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## KeithCAN1

I'm pretty certain I will hear something from the IRS because all of my six amendments had either some balance owed to me or I owe to them. So while my net over the six years is that I overpaid ~$100, I'm not sure how that is going to work out. Something tells me they'll ignore what they owe me and make me pay up for the returns when I owe them (+interest). Anyway I just hope it never goes beyond that.


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## Nobledreamer

They seem to be pretty good about paying if they owe you. Many people, early on, described getting the stimulus payments!


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## KeithCAN1

Yup I got that stimulus check up here many years ago! Anyway we'll see... my accountant said don't get my hopes up too high, they focus harder on getting paid than paying out


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## FilingLate

Hello Keith i am where you were before filing your tax.
My question is can you please guide me in what you did?
I have earned income from my bank account in the amount of 400 or so $ every year.

Can you please guide me on what you did?
Thanks


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## Bevdeforges

I don't think Keith has been around in the last few months.

Whether or not you need to file depends on your filing status (i.e. married, single, head of household, etc.) and your gross income (i.e. income from all sources before any exemptions or deductions). If all you have is $400 of bank account interest, chances are you don't have to file at all. (And, by the way, bank interest is NOT considered "earned" income - there's a whole vocabulary involved with taxes.)

BTW, if you're location is correctly indicated, you should be able to find free tax help - possibly through the program called VITA (Volunteers in Tax Assistance). Check at your local library or town hall to see if there is a local VITA program.
Cheers,
Bev


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## KeithCAN1

Sorry, I have been MIA for awhile. 

To be honest, I myself didn't do much. I hired an accountant to handle it all. All I did was amass all the data for my accountant to sort through. 

Bev - I thought you always have to file. Even if you didn't earn anything?


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## Bevdeforges

KeithCAN1 said:


> Bev - I thought you always have to file. Even if you didn't earn anything?


You don't have to file if your gross revenue (before any exemptions or deductions) is less than the threshold for your filing status.
Cheers,
Bev


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## BBCWatcher

And there's no _penalty_ for non-filing if the U.S. tax you owe is genuinely zero or negative. (Though that's a bit risky if the IRS has a different view about what you owe, even if their view is "incorrect.")

Note that FBARs must be filed if required, no matter what you do or do not owe. It's an entirely separate filing obligation to a separate agency.


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## FilingLate

Keith would it be possible if you can give me his name or ping his name. I am in search of one
Thanks


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## FilingLate

Keith if its a good accountant can you please give me his name or ph number so i can give him a call as well. Can't come across a good accountant for Fbar

Thanks


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## KeithCAN1

FilingLate - check your inbox for a few suggestions


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## KeithCAN1

bwt - FBAR forms (and the current equivalent) are pretty easy to fill out. You don't really need an accountant for those.


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## jbr439

BBCWatcher said:


> And there's no _penalty_ for non-filing if the U.S. tax you owe is genuinely zero or negative. (Though that's a bit risky if the IRS has a different view about what you owe, even if their view is "incorrect.")
> ...


That's not totally correct. For example, if you have "foreign trusts" (which are ridiculously easy to have in Canada - RESP, TFSA, RDSP), you need to file 3520 and/or 3520A forms. Failure to file these can result in penalties that start at $10K and are independent of the fact that you may owe no tax.


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## BBCWatcher

Yes, that's a bit of a quirk. The key point is that a trust is another entity, and the trust could have certain IRS filing responsibilities. If it's _your_ trust, you're on the hook.

Another possible example of this sort of "ricochet" effect is if you have a U.S. citizen child who, let's suppose, is a highly compensated actor within the Hong Kong film industry. (Yes, this is a bit far fetched, but stick with it.) Even if you don't have a filing requirement, your child does. Minors need some help to file, and that's you, the parent.

There are a few other examples when some other entity has a filing responsibility, and that ends up being yours given your affiliation with that entity.


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