the highest aggregate balance of the year

tsanaha · Post by **tsanaha** » Tue Aug 23, 2011 1:56 am

right, even just for one day of the very high the balance. as long as the bank record/statement shows that fact, you have to use that amount as the highest value.

you do not think/expect "fair" when you are on your knees asking IRS to forgive.

adrval · Post by **adrval** » Tue Aug 23, 2011 7:40 am

What if you don't get bank statements?
I just check online for balances?
What do they see?

tsanaha · Post by **tsanaha** » Tue Aug 23, 2011 7:49 am

you do not need submit bank statement if your total aggregate balance (highet) is less than 500K.

however, you should ask bank to provide or you can print out online -- get them ready -- often they will ask to verify..

calgary-alberta · Post by **calgary-alberta** » Tue Aug 30, 2011 11:55 am

tsanaha, do you receive any kind of confirmation from IRS after sending IRS the OVDI full package? Will there be tax audit? Thanks.

tsanaha · Post by **tsanaha** » Tue Aug 30, 2011 12:03 pm

Calgary,

the process is called certification, it is less formal than audit.

IRS does not seem to send anything back upon receiving the package. however, you can call hotline to ask if your package is on the pipeline for processing. If your package is not considered complete, they usually send a letter. Hotline will also let you know the status.

sugnani · Post by **sugnani** » Tue Aug 30, 2011 10:09 pm

Hi tsanaha,

If I move already taxed US money to my bank in India, do I still need to include this amount for highest average balance?

Thanks

tsanaha · Post by **tsanaha** » Tue Aug 30, 2011 10:54 pm

sugnani,

if you report income (such as interest earning) from your India bank account, you do not need include, otherwise, yes...

sugnani · Post by **sugnani** » Tue Aug 30, 2011 11:02 pm

Sorry tsanaha, I did not get your answer.

Say if I move 20K from my US bank account to my India bank account which has already 10K. Now the balance is 30K. So, do I now show this 30K as highest balance? Can you please explain a bit on how this works out?

Thanks so much or your help.

tsanaha · Post by **tsanaha** » Tue Aug 30, 2011 11:16 pm

if you move 20K (after US tax money) to an Indian bank account which has 10K, then your total offshore is 30K.

If you did not report bank interest income on your return, then 30K will be your penalty base.

If you have never report your Indian bank account earning, you have to use the highest balance of that account to be the penalty base.

calgary-alberta · Post by **calgary-alberta** » Wed Aug 31, 2011 10:45 pm

Hi tsanaha,

I mailed my package to IRS in Austin. I tracked the package. The package was delivered to a different zip code (73301) in Austin although I used the following address as instructed by the ovdi FAQ. This seems weired. It seems IRS also has office at zip code 73301. I am wondering if this will cause any issues. should I call OVDI hotline?

Internal Revenue Service
3651 S. I H 35 Stop 4301 AUSC
Austin, TX 78741
ATTN: 2011 Offshore Voluntary Disclosure Initiative

tsanaha · Post by **tsanaha** » Thu Sep 01, 2011 1:55 am

Calgary,

It is the local post office tracking system problem. Your package should be delivered to the right place. No worry. It was the same for my package as well. In a few days, you will see your check being cashed.

Hotline seems very helpful, you can call and leave your name, ssn and tell them your question, they will return your call --- and let you know the package status.

calgary-alberta · Post by **calgary-alberta** » Thu Sep 01, 2011 11:07 am

Thank you tsanaha. You have been very helpful :)

nstudent · Post by **nstudent** » Tue Sep 06, 2011 7:35 pm

Tsanaha

How did you do the tax returns on GIC? Is GIC just an ordinary bank account and one just reports the distribution as ordinary income?

Thanks.

tsanaha · Post by **tsanaha** » Tue Sep 06, 2011 8:48 pm

GIC pays out interest (if any), you should report whatever it pays out.

In one my case, I had index GIC which follows some kind index for three years and it pays whatever the index gain over three years (but no more than 20%). In that case, there is no gain for the first two years. Anyway, you should know what your gain via the term of GIC and report it as incom (not like PFIC)..

nstudent · Post by **nstudent** » Tue Sep 06, 2011 8:52 pm

tsanaha:

Thanks very much.