the highest aggregate balance of the year
Moderator: Mark T Serbinski CA CPA
he meant that we had wasted his time. i did not know this site (certainly him an expert) until march 2011 when i was looking for information on f8891 back file.
we did not waste his time, we just knew him way too late (also learned "what is income" too late).
it is never too late to make it right --- in this case , can we say "money can buy time ?" we pay the penalty (money) for being late learners...
we did not waste his time, we just knew him way too late (also learned "what is income" too late).
it is never too late to make it right --- in this case , can we say "money can buy time ?" we pay the penalty (money) for being late learners...
My sharing,
I back filed 8891 and FBAR for 6 years, now got the response letter from IRS and it said they have not resolved the issue yet and will contact me later.
It was send from US residency certification Unit. Don't know what will happen next. Any idea for this unit of IRS?
Nelsona, please advice if the back filing of 8891 was not accepted without PLR, what should I do to argue with IRS, do you have any link, any doc. to share?
Thanks!
I back filed 8891 and FBAR for 6 years, now got the response letter from IRS and it said they have not resolved the issue yet and will contact me later.
It was send from US residency certification Unit. Don't know what will happen next. Any idea for this unit of IRS?
Nelsona, please advice if the back filing of 8891 was not accepted without PLR, what should I do to argue with IRS, do you have any link, any doc. to share?
Thanks!
i think you will be considered as in "good faith" by approaching to IRS with back filing....
if IRS does not approve your back filing (making election) right away, they may ask you to explain why it is so late.... so you may send them a letter to explain and give your reason for being late.
i just don't see any reason for IRS to reject you --- this will make them look really bad because you only missed some paper work for RRSP...
This is just my guess -- i have never heard anyone with missing f8891 being fined (i mean online search)...
if IRS does not approve your back filing (making election) right away, they may ask you to explain why it is so late.... so you may send them a letter to explain and give your reason for being late.
i just don't see any reason for IRS to reject you --- this will make them look really bad because you only missed some paper work for RRSP...
This is just my guess -- i have never heard anyone with missing f8891 being fined (i mean online search)...
ikeaidea
Does this unit of IRS need to verify you US residency -- so the treaty can be applied to your case ?
http://www.irs.gov/businesses/small/int ... 09,00.html
Does this unit of IRS need to verify you US residency -- so the treaty can be applied to your case ?
http://www.irs.gov/businesses/small/int ... 09,00.html
The letter said I don't need take any action right now but wait for their response.
I hope it is true just like what you estiamted. Some IRS agent are very friendly and some are really not. For the FBAR, I hope my case was handled by friendly one.
Very scary and very angry. It was a trap for us, we just want to save some money for retirement and reduce the burden of gov in the future. If we get penalized, IRS means using up all the savings and rely on the gov when getting old is the best? :cry:
I hope it is true just like what you estiamted. Some IRS agent are very friendly and some are really not. For the FBAR, I hope my case was handled by friendly one.
Very scary and very angry. It was a trap for us, we just want to save some money for retirement and reduce the burden of gov in the future. If we get penalized, IRS means using up all the savings and rely on the gov when getting old is the best? :cry:
You should be okay -- and I think it is morally wrong for IRS to reject your back filing --- because there is such a relief for those who failed to make an election in time. They have no case to accuse you in "bad faith" because once you discover this error, you tried to fix it -- and it is fixable !!!
Certainly you have to prepare the worst --- and that is really big time rip off !
For now, we just hope our Gov is indeed for the people !!!
Certainly you have to prepare the worst --- and that is really big time rip off !
For now, we just hope our Gov is indeed for the people !!!
back filing 8891 is perfectly accepatable without PLR. Their saying the matter is not resolved, may have to do with FBAR, or with how you filled 8891.
I would not worry at this point.
my point about ovdi, is that if one has reported the income from all these accounts (or elected deferral in case of RRSPs), there is NEVER any FBAR penalty (as was illustarted in our original posters discussion with ovdi re his rrsp.
Where ovdi is being less forgiving is where BOTH the income reporting, and the FBAR disclosure has not been made.
One of th posters on this thread said they thjought there mutual fund income was soo small that it didin't count. This notion is ludicrous, and they should be paying for it now.
I would not worry at this point.
my point about ovdi, is that if one has reported the income from all these accounts (or elected deferral in case of RRSPs), there is NEVER any FBAR penalty (as was illustarted in our original posters discussion with ovdi re his rrsp.
Where ovdi is being less forgiving is where BOTH the income reporting, and the FBAR disclosure has not been made.
One of th posters on this thread said they thjought there mutual fund income was soo small that it didin't count. This notion is ludicrous, and they should be paying for it now.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
nelsona,
we knew all income should be taxed. the mistake was the misunderstanding on offshore tax withhold (some immigrants would think that was one tax enough, in some case, the tax rate is much higher). Certainly being ignorant/stupid to know "foreign tax credit"
Canada used to withhold non-resident tax and stopped in 2007(2008).. and since then I did report income in US return.
Totally agree what you have said, the key is to report (or make election) in US -- FBAR is just a means for tough penalty by IRS for failing to report.
we knew all income should be taxed. the mistake was the misunderstanding on offshore tax withhold (some immigrants would think that was one tax enough, in some case, the tax rate is much higher). Certainly being ignorant/stupid to know "foreign tax credit"
Canada used to withhold non-resident tax and stopped in 2007(2008).. and since then I did report income in US return.
Totally agree what you have said, the key is to report (or make election) in US -- FBAR is just a means for tough penalty by IRS for failing to report.
Also, I never filed schedule B (even in 2010) -- simply added interests from all banks (including ofshore banks after 2008), because I thought it was optional (which is indeed labled as "if applicable" in f1040
now most people use software -- that may be a different story. For people just fill paper return, it may skip schedules. I did not fill schedule M in 2009 --but IRS did it for me and sent me a check of $800.
It seems to me using software like turbotax can be a safeguard to lead some mistakes.
If schedule B were filled, then it would also lead to fill FBAR, with reporting offshore income.
now most people use software -- that may be a different story. For people just fill paper return, it may skip schedules. I did not fill schedule M in 2009 --but IRS did it for me and sent me a check of $800.
It seems to me using software like turbotax can be a safeguard to lead some mistakes.
If schedule B were filled, then it would also lead to fill FBAR, with reporting offshore income.
It would be more obvious if on f1040 --- if there is interest income -- A schedule B must be filled -- not as "if applicable" -- anyone who reads schedule B would know to click offshore, and then know to fill FBAR. The problem is someone (dumb like me) never led to read Schedule B, even all intereests were added into f1040.
F1040 comes with instructions, which state that you must file sched B if you meet any of the criteria at beggining of sched B.
The form is kept purposely sparse on expalanations. Not so the wriiten instructions.
The form is kept purposely sparse on expalanations. Not so the wriiten instructions.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Likwe I said, its sad that neglecting to read the rather simpler instructions from IRS has led to needing to become an expert on fbar and ovdi, and wasting a perfectly good long weekend afternoon listening to some crackpot tax laweer equivalent to sn ambulance chaser.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing