just learned about FBAR

john09 · Post by **john09** » Thu Mar 16, 2017 1:50 pm

Hello and sorry if this is a stupid question but i just learned something calling FBAR filing, i am canadian citizen living in US as PR for last 2 years, i filed 1040form for last 2 years "Tax year 2015 & tax year 2016" eventhough i didnt make any income because i am a green card.
i just became aware about FBAR and i do have canadian bank accounts with just a little bit over 10K, how do i file FBAR for 2015 since deadline is past due and for 2016 as well?
am i in trouble? do i get any penalties?? :(

Thank you so much in advance

Journadian · Post by **Journadian** » Thu Mar 16, 2017 3:13 pm

Is the little over 10k cdn dollars? If you're still under 10k usd you should be ok.
Check the year end exchange rate.. if you had to do the fear I think there would be a late penalty :(

https://www.fincen.gov

YouTube has some videos on how to fill the form.

Good luck

john09 · Post by **john09** » Thu Mar 16, 2017 3:22 pm

Thanks Journadian for the quick response,

i have more than 10K USD after rate exchange, i just saw on IRS site https://www.irs.gov/individuals/interna ... procedures that i can submit delinquent FBAR forms if "The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs"

My Canadian bank accounts are checking accounts so no interest is made in them, in addition since i became PR i made 0$ worldwide.....does that mean that i have no penalties since i had nothing to report anyway in my 1040 for alst 2 years?

john09 · Post by **john09** » Mon Mar 20, 2017 2:34 pm

HI,

I just realized that in my 2015 form 1040EZ that i submitted it wasn't accompanied with [b]Schedule B form Part 3[/b] where they ask for foreign bank accounts, Also i found out that schedule B usually goes with 1040 & not my 1040EZ anyway !!!
shall i send schedule B form although being it late or shall i just stick to submitting delinquent FBAR for that year?

Thanks a lot guys,

victoriaguy · Post by **victoriaguy** » Mon Mar 20, 2017 7:29 pm

Hi John,

On the FBAR, there is a reason for late filing field. You select "Did not know that I had to file". If they ever ask you about it, keep a full, detailed account of when you found out, how soon you filed etc. It sounds like you either paid all tax due, or didn't own any, so you should be okay.

I doubt you need to file an amended return for '15 just to submit a Schedule B, just to tell them you had to file an FBAR. I think that question is there to trigger people to discover the FBAR. At any rate, if you reported all income and paid all tax, I think that is the important thing.

If I were you, just to be sure, I would call the IRS International Tax Hotline and ask them if it's worth submitting an amended return to answer the questions re FBARs on a Schedule B. I highly suspect they will say no, but I'm not an accountant and don't know for sure.

john09 · Post by **john09** » Mon Mar 20, 2017 10:14 pm

Thanks Victoriaguy for your reply,
i am leaning towards doing just the FBAR without scheduleB for 2015, eventhough 2016 i can still submit the FBAR within time although i already submitted 2016 taxes already!
i did find out also that i had less than 20 cents in my foreign savings account which i never check as it has very little money, and since i never received any form from the canadian bank regarding interest, it has to be less than 10$ to mail you a form....... also, after checking IRS website i read in there that any amount less than 49 cents gets rounded off to 0 anyway.
And, even if it didnt round off, it would not make a difference overall in the return based on my call with the IRS today , since that whole year i made less than the required amount to file anyway....
so i think schedule B will be unneeded for 2015 eventhough form 1040EZ has no section anyway about foreign bank accounts....
i dont know why they never mention this FBAR form to new immigrants or is in form 1040EZ!!!

nelsona · Post by **nelsona** » Tue Mar 21, 2017 2:29 pm

I would not amend your 1040EZ just to submit Schedule B, as long as you fulfill the requirements that went along with answering yes to any or all of the questions.

It has always been the recommendation from this forum to NOT use 1040EZ, or even 1040A. Here is a perfect example why.

john09 · Post by **john09** » Thu Mar 23, 2017 9:22 pm

Thanks for the answers,

which currency rate shall i use for FBAR currency conversion from CAD to USD for 2015 & 2016? is it the one on the end of the year in both IRS/Treasury site? or shall i use the interest rate from sites such as XE for the day with the biggest amount?

victoriaguy · Post by **victoriaguy** » Fri Mar 24, 2017 3:44 pm

It says in the FBAR instructions, which you can google and download, to use the US Treasury year end rate.