Foreign account since 2011

[Kea]

New client answered Yes to having foreign bank account. He bought apartment in India in 2011 and had transferred money there prior to making initial pmt.

I think the amnesty programs have expired (but I could be wrong). I know he must file FBAR, but looking for advise to minimize late filing penalties.

Max 2011 amt around $29K

[Kea]

bump

[joanmcq]

Have him file the FBAR late with an explaination, as well as any other forms he might need. I've done 'quiet' filings like this before and have gotten some letters requesting an explaination of late filing before assessing any penalty. Last year I did 10 years back filings of 3520s, 3520-A & FBARs, and they accepted the explaination that we were not aware that a foreign retirement fund is considered a foreign trust. All penalties were waived. I have the client file the FBARs-too much liability there, and it isn't a tax form.

Don't do amnesty; small potatoes aren't what they're looking for.

[Kea]

Thanks for the good news. I thought at first he would have to file the new 8938, but found out the apartment doesn't count. No trusts so no 3520s or 3520As (thankfully!)

So I think he's fine with FBAR only. And the account only goes back to 2011 so we get to catch it early. I'm very releived to hear they can be reasonable. The penalties are just so high and scarey.

Oh, and thanks again for your recommendation a few years ago about recommending Mr. Hodgen for help with the 3520 & 3520A for a fideicomiso. Still not sure it's required, but better safe than sorry.