Reasonable Cause Letters

rockbottom · Post by **rockbottom** » Fri Apr 26, 2013 1:40 am

For those of you who have written these before for 3520 forms and FBARS.

I'm taking a cautious approach and submitting a cover letter with each delinquent 3520 and FBAR. My reasonable cause is the standard:

-Didn't know, recently found out, trying to comply
-Accounts were held for legitimate reasons
-No US tax owing

My remaining question is: do these need to be signed under penalty of perjury?

I'd rather not if I don't have to. What have other people done?

Taxpoor · Post by **Taxpoor** » Fri Apr 26, 2013 8:04 am

That sounds about right...i sent one in for my initial back filing of the FBAR, and I also included one for my backfiled 1040's.

In brief, my Accountant outlined my situation, having never lived in the United States and unaware of my filing obligation until recently. He confirmed to the IRS that I did not owe any tax...etc etc.

The Firm actually signed the letter, I just attached it and sent it in.

Not sure about your final question regarding penalty of perjury.

primo · Post by **primo** » Fri Apr 26, 2013 9:42 am

Rockbottom,
I submitted reasonable cause letters with my FBARs and 3520/3520As in Jan. 2012. They weren't signed under penalty of perjury. I haven't heard a word back on the FBARs.
The 3520s were a whole different situation. I received several letters indicating that the forms were not completed properly even though they were. Then, after the 3520s were processed, I received letters stating that I must submit a reasonable cause letter and that I faced possible penalties. I resubmitted letters for each year separately and the situation was resolved without penalty. The re-submitted letters also were not signed under penalty of perjury.

Search for these threads on this forum and it may help you avoid some possible pitfalls
Help - IRS letter indicating penalty for late 3520
How to contact IRS after their letter indicating 3520 error?

rockbottom · Post by **rockbottom** » Fri Apr 26, 2013 10:54 am

Okay, thank you. This is helpful! I have read the threads you mention, just wasn't sure about the signature.

I won't include letters with the 1040s since I'm well below the filing threshold. Just submitting them because of my bank accounts and RESP.

rockbottom · Post by **rockbottom** » Sun Dec 08, 2013 3:08 pm

So there's a happy ending for my little sob story. Sent in the whole package of streamlined materials. Two months later got a check for $8.00 with a note of explanation saying I had miscalculated. For anyone who is having trouble sleeping at night, let me tell you that I was in that place for two months earlier this year, but there is a light at the end of the tunnel. If you're stressed out and worried about whether you should file, just do it. It will be fine. I now sleep like a baby.