How far back to file FBARs

brew99 · Post by **brew99** » Fri Sep 30, 2011 10:41 am

My wife and I have lived in canada for the past 10 yrs and we are in the process of getting her (USC) US back taxes filed (3 yrs) by a professional firm, but am going to attemp the FBARs myself since most of this data i'm gonna have to dig-up anyhow. What is the requirement for how many years back to submit the FBARs?

Thanks

brew99 · Post by **brew99** » Fri Sep 30, 2011 10:44 am

Also, in addition to the question above. If i'm dealing with a RRSP account which I would normally only get quarterly statements, how am I to find the highers aggrated value for the year? Do I just use the available statements I have and pick the highest for that account?

tsanaha · Post by **tsanaha** » Fri Sep 30, 2011 10:49 am

i think back file FBAR is 6 years, as for your RRSP, you just pick the highest balance among these 4 qrly statement for each year.

nelsona · Post by **nelsona** » Fri Sep 30, 2011 11:43 am

If you have not been filing 1040, the 3 years is the norm for 1040, FBAR and 8891.
Only if you owe tax, should you go back farther.

For 8891, the year-end ammount is put on the form (in USD at that date).

For FBAR, as tsahana sez, the highest statement-end value amongst the 4 statements -- in USD -- is good enough.

tsanaha · Post by **tsanaha** » Fri Sep 30, 2011 12:36 pm

the norm of back 1040 file is 3 years but the FBAR is not an IRS form,

FBAR civil penalties can be assessed anytime up to six years after the date of the violation.

I would go 6 years back

nelsona · Post by **nelsona** » Fri Sep 30, 2011 1:18 pm

This is NOT the current practice for forgetful 1040 filers.

Only 1040 filers who underreported need go back 6 years.

There is no point submitting an FBAR with no underlying 1040.

nelsona · Post by **nelsona** » Fri Sep 30, 2011 1:21 pm

The IRS is under Treasury, so filing an FBAR without underlying 1040, would open one up for IRS 1040 filings.

3 years is the proper catch-up requirement.

tsanaha · Post by **tsanaha** » Fri Sep 30, 2011 2:01 pm

make sense, i guess that 6 yeras FBAR has to deal with last 6 years of 1040..

brew99 · Post by **brew99** » Fri Sep 30, 2011 2:45 pm

Thanks tsanaha and nelsona.....I'll try the 3 yrs first and see what happens.

brew99 · Post by **brew99** » Fri Sep 30, 2011 3:29 pm

When submitting the FBARs, would you suggest including a cover letter indicating that we were unaware of the requirement to comply with the reporting of foreign accounts? Is this going to help hopefully not be penalized?

TooMuchCoffee · Post by **TooMuchCoffee** » Fri Sep 30, 2011 4:38 pm

If I'm understanding this properly, Nelsona, you are saying that if you are sending in three years of tax returns to "catch up" you should only send in three years of FBARs.

I have already sent in FBARs going back to 2003, and three years of US returns to "catch up". Should I do anything else?

And brew99 - on my accountant's recommendaiton, I sent in a letter saying I didn't previously file FBARs because I didn't know I was supposed to - the letter states that I'm also a Canadian, have only worked in Canada, and pay taxes here and file Canadian tax returns, and have Canadian accounts because this is where I live.

nelsona · Post by **nelsona** » Fri Sep 30, 2011 4:42 pm

2003? Way overkill. Enough.