# Streamline process & fbar



## Anne2016 (Jun 15, 2016)

Hello

This month, I just notice that us citizen have to file their tax no mater where you live. Because when i tried to open an bank account and was ask to file w9.

I was so shocked and panic!!! 

I'm 32 years old and already worked for 8 years, and only earn USD 20,000~30,000 per year. I was born in the US but back to Taipei when only 3 months old.Untile 20 years old, i first visit US just for travel and apply a social security number without knowing why i need one, but thought just have it in case. I didn't visit US afterwards .
I never study in the US, never work in US, but have to file tax to US...so strange !

I have searched information and consult with accountants, and it seeems that there are some options? 
1. File Fbar this year and start to file tax next year, the accountant should charge USD 250. 
That comes with another question, my account has already exceed the threshold in 2014, do i need to file a late report?

2. Do the the streamline, and the cost should be around USD 3500.


Which one is better ? Could someone give me some advice?


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## BBCWatcher (Dec 28, 2012)

Option 3 is to learn how to file your own tax (IRS Form 1040) and financial report (FinCEN Form 114). It's not hard, particularly in the sort of income bracket you are in. You can try using H&R Block's free online edition to prepare your 2015 tax return. Then, once you've figured out 2015 (with the help of tax preparation software, even H&R Block's free edition as an example), use the IRS's Streamlined Program and figure out 2013 and 2014. (I don't think you need 2012 at this point since we seem to be just past three years after its original due date.) You can again use tax preparation software for those previous years, although that'll cost a _little_ bit of money. But nothing like $3500. (The professional you hire would do they same thing. They use tax preparation software to do the work.)

FinCEN Form 114 is very easy to fill out (reflected in that price you were quoted). You don't need a professional to do that either. It's a very simple online form, and you're not even late yet for your 2015 report. (It's due June 30, 2016.) To participate in the Streamlined Program you'll also need 6 prior years (2009 onward), assuming you met the US$10,000 filing threshold in each of those years.

Anyway, in your situation it's almost certainly going to be: (a) simple (with the help of tax preparation software); (b) doable on your own (ask questions here if you like); (c) no U.S. tax owed, only annual tax and financial account reports.


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## Anne2016 (Jun 15, 2016)

Thanks for your instant reply

So do you mean that i should still do the streamline ( file 1040. From2013~2015) and the fbar from 2009 to 2015? 

Since the due date of fbar is 6/30, should i just file the 2015 fbar first, and do the rest of the 1040 (2013~2015)later?


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## Bevdeforges (Nov 16, 2007)

With the FBAR deadline approaching, yes, you should probably just do the 2015 FBAR and then decide where to go next.

Actually, you have a number of options. Assuming you owe no taxes, you could quite easily just start filing this year and going forward. It is highly unlikely that there would be any repercussions at all to this approach, though it is not, strictly speaking, "by the book."

Up to you whether you prefer to pay an accountant to file a return simply to show that you owe nothing, or if you want to file a "good faith" return yourself. You can either use a software system like H&R Block (or any of several others) or work your way through it yourself. To read up on the requirements, take a look at IRS publications https://www.irs.gov/publications/p54/ and https://www.irs.gov/uac/about-publication-17

54 is specifically for overseas taxpayers and 17 is basically "everything you need to know about US income taxes" - both publications have much, much more detail that you will need. 

Unless you are receiving income from the US, your main concern will be reporting your salary income plus any bank interest and investment income. The main forms you'll be concerned with are the 1040, 2555 and then you probably have to file a Schedule B, if only to tick the box asking if you have foreign bank accounts. First time through is probably the worst. After that it's a matter of following the first year's model.
Cheers,
Bev


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## Anne2016 (Jun 15, 2016)

Thanks Bevdeforges! 
I'm still trying to figure out what is best for me



Bevdeforges said:


> With the FBAR deadline approaching, yes, you should probably just do the 2015 FBAR and then decide where to go next.


I'm not sure if I'm going to do this myself or to hire an accountant, but I tried to do the FinCEN form114 myself just in case I decide to do it my own and will be able to submit it in the very last minute!

Since I only have bank accounts, no investment or joint account, I only do part I & II, and the rest is almost blank. Hope that this is right.



Bevdeforges said:


> Assuming you owe no taxes, you could quite easily just start filing this year and going forward.


I'm sure that I owe no tax. So do you mean that I could just do FBAR now for 2015, and to start file 1040 or other related forms next year without doing the streamline?


I also got some questions while filling FBAR. 
1.Since some of my bank account has already reach to 300,000 USD, will the IRS wondering how come I reach to this amount, and suspect me not filing for previous year ?
2. Will the IRS be able to get transaction history of my bank account? Because today an accountant told me that when I have to file FBAR, that is also the time I should file tax return. I think she was assuming I have no assets and savings, and therefore, no need to expose my financial account. However, I am thinking if the IRS can view translation history, if they do,they should discover I have never report which I should!!

Hope I'm just thinking too much...


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## Bevdeforges (Nov 16, 2007)

OK, yes, you're basically overthinking this by quite a bit.



> I also got some questions while filling FBAR.
> 1.Since some of my bank account has already reach to 300,000 USD, will the IRS wondering how come I reach to this amount, and suspect me not filing for previous year ?


Frankly, they don't track those things that closely. Technically, and legally speaking, you probably should do the back FBARs just to be in strict compliance.

But I do the FBARs for a friend of mine and she hadn't filed anything for a couple of years after her husband died. We have no idea what her husband did or didn't file prior to his death. We just started filing FBARS with her one account (balance is mid-six-figures - basically a savings account she is drawing down in retirement). Never have heard a word from anyone about this (and she doesn't file a tax return because her income doesn't reach the threshold level). Maybe someday she will, but we'll cross that bridge when we come to it. (If ever.)



> 2. Will the IRS be able to get transaction history of my bank account? Because today an accountant told me that when I have to file FBAR, that is also the time I should file tax return. I think she was assuming I have no assets and savings, and therefore, no need to expose my financial account. However, I am thinking if the IRS can view translation history, if they do,they should discover I have never report which I should!!


The IRS can only get transaction history if they make a formal request - which usually requires a court order or other fairly elaborate legal document. (Depends on your country's rules on these sorts of thing.) You only have to file tax returns when your income exceeds the filing threshold for your tax status (i.e. married, single, etc.) It is entirely possible to have $300,000 in the bank and to not have your gross income exceed the filing threshold (especially in these days of minimum interest rates). Or to have had $300,000 in your account for only a few days, say on selling your house, and then turning around to buy something else a few days later.

But there is no particular reason to believe at this time that they are cross checking between your FBARs and your income tax filings if you're in the lower to middle income ranges unless you show some huge discrepancy on your tax returns. 
Cheers,
Bev


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