Amnesty and streamlined filing service --penalties waived

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Vancouver2014
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Joined: Sat Jul 18, 2015 7:23 pm
Location: Vancouver

Amnesty and streamlined filing service --penalties waived

Post by Vancouver2014 » Sun Jul 19, 2015 10:20 pm

HI, I found the following on another forum which might be helpful to some. Has anyone filed using this online application?

If you wanted to get into compliance, note the amnesty that the IRS has provided over the last year or so:

http://www.irs.gov/Individuals/Internat ... -Taxpayers

The idea, if this is to be believed, is simply to bring US citizens and GC holders back into compliance without the terror that had been associated with doing so. There may or may not be taxes associated with filing (depending on your circumstance), but the penalties seem to be waived. Again, there is a huge deduction (Form 2555) of roughly US$100,000 for each wage-earner.

No penalties will apply to US persons who file under the IRS’s Streamlined filing program. It requires US persons resident outside the US to file their last three years of delinquent US tax returns and disclose their financial accounts outside the US for the last six years.

Here's a question though. Will my late reporting of FBAR now cause problems with my exhusband? WE filed jointly not knowing about FBAR. Once I report my accounts, will they go after him?

DaveM
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Post by DaveM » Mon Jul 20, 2015 12:46 am

The Non-U.S. Resident Streamline Procedure you're referring to has been in place since 2012. The newer one for U.S. residents went into effect in 2014.

I'm not a professional, but my guess is that if your FBAR delinquent accounts were jointly held, then you would have to backfile the FBARs jointly. I could be wrong-maybe nelsona is still checking in.

nelsona
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Post by nelsona » Mon Jul 20, 2015 8:06 am

The streamlined process, as was menyioned is for non-ressidents of US. You were resident until 2014, so that doesn;lt help you.
Time to see a professional.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Vancouver2014
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Location: Vancouver

Post by Vancouver2014 » Mon Jul 20, 2015 12:27 pm

So I could only use this next year for filing my 2015 FBAR? I returned to Canada mid-2014. And yes, I'm going to see a professional. Not sure whether to see a Canadian cross border tax expert or return to Seattle and see an American accountant.

nelsona
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Post by nelsona » Mon Jul 20, 2015 12:38 pm

This is a cross border issue. You had a US CPA doing your taxes, how well did that go? Not very.

Obviously you don't need streamlined for 2015, you will file correctly next spring, you need it (once) for 2011-2014.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Vancouver2014
Posts: 12
Joined: Sat Jul 18, 2015 7:23 pm
Location: Vancouver

Post by Vancouver2014 » Mon Jul 20, 2015 7:54 pm

No, you're right. I assumed I would need to amend my taxes with the original accountant since he has our joint tax statements. Can you recommend a cross-border tax specialist in the Vancouver area?

nelsona
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Post by nelsona » Mon Jul 20, 2015 8:15 pm

Based on our brief interactions, I could not in good conscience recommend anyone to you.

Besides, this site is run by a cross-border firm, not ethical to recommend anyone else.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Vancouver2014
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Joined: Sat Jul 18, 2015 7:23 pm
Location: Vancouver

Post by Vancouver2014 » Thu Jul 23, 2015 7:56 pm

Just a brief update in case anyone else is in my situation. Yesterday I drove down to Seattle and amended three years of tax statements and filed three years of missing FBARs with the accountant who had taken care of my joint tax return when I used to live in the US. We also filed 3 years of FBARs for my son who was an unemployed student during the short time he was in the US along with a statement to the effect that he did not know about FBARs. The accountant told me it was extremely unlikely my son would get a penalty especially since he has Aspergers (we included a brief note from his family doctor. The accountant told me it was unlikely I would be penalized since the unreported interest income was low but to prepare myself for a possibility of a 5K penalty for filing the FBARs late. He had a handful of former GC holders amend tax returns and file FBARs earlier this year and none of them paid more than 5K total in penalties, not even the guy who had $40K in his TFSA. So for what it's worth, that's my experience. I wish more people would post about their experiences AFTER filing late FBARs and amended statements so that readers could assess their issues with a little more objectivity and a lot less panic.

nelsona
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Post by nelsona » Fri Jul 24, 2015 9:52 am

Your son -- as I have said all along -- will not be penalized, since he did not owe tyaxes -- not because he has Asperger's, which is NOT an excuse.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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