Reasonable cause for amending FBAR

schwaz · Post by **schwaz** » Mon Oct 29, 2012 12:47 pm

Greetings all,
US citizen resident of Canada. I am about to submit amended FBAR's for the last five years because I inadvertently left out a couple of low balance bank accounts including some RRSP's (under $1,000). BTW, I have just submitted 8891's for these retroactively.

My question is, according to what I've read on various international tax sites claiming one forgot to report an account is not considered reasonable cause by IRS. Though it is the truth I'm nervous about how to word a letter of explanation.

Any advice from folks who've already done this would be greatly appreciated!

graubart · Post by **graubart** » Mon Oct 29, 2012 5:24 pm

Some of the reasons listed here on the IRS website may apply to you:

http://www.irs.gov/uac/Information-for- ... de-the-U.S.

schwaz · Post by **schwaz** » Tue Oct 30, 2012 11:45 am

[quote="graubart"]Some of the reasons listed here on the IRS website may apply to you:

http://www.irs.gov/uac/Information-for- ... de-the-U.S.[/quote]

Yes, I've seen that, thanks. I'm wondering if anyone here has actual experience with sending in a letter of explanation and what kind of response they received based on it.

nelsona · Post by **nelsona** » Tue Oct 30, 2012 12:07 pm

It should be pointed out that this information applies to those who have FAILED to file FBAR in a timely fashion.

Our poster is asking aboiut filing an INACURATE FBAR.

The method of amending an FBAR is simple, and does not require proving you were an ignorant, uneducated buffoon:

http://www.irs.gov/Businesses/Small-Bus ... ments#FR15

schwaz · Post by **schwaz** » Tue Oct 30, 2012 12:38 pm

[quote="nelsona"]It should be pointed out that this information applies to those who have FAILED to file FBAR in a timely fashion.

Our poster is asking aboiut filing an INACURATE FBAR.

The method of amending an FBAR is simple, and does not require proving you were an ignorant, uneducated buffoon:

http://www.irs.gov/Businesses/Small-Bus ... ments#FR15[/quote]

Hey, I represent that Nelsona! ; )

"statement explaining additions or corrections" sounds like they're not asking for any reasons, instead just clarity as to corrections.

nelsona · Post by **nelsona** » Tue Oct 30, 2012 2:10 pm

Exactly. OVDI seems to have everyone forgetting that tax returns are often filed with plain and simple mistakes, not as a result of negligence or stupidity.

btw, don't use the quote feature, it doesn't work, and we can raise our eyes a couple of inches if we need to refer back.

schwaz · Post by **schwaz** » Tue Oct 30, 2012 2:39 pm

Thanks Nelsona. Your efforts here are really appreciated.