QUESTION

Can IRS come after me for International bank accounts that were not declared in my taxes since I did not know that was a requirement?

Asked on Apr 18th, 2013 on Taxation - California
More details to this question:
I have been working on a visa in the United States in the years 2006-2007 and 2008, then left the country and came back in 2010 as a green card holder, starting to work again in the United States. In 2011 I lost my job and received unemployment for about 3 months. Finally in January 2012 ,I got again a stable job that I have still now. Summarizing I had to do tax declaration for the years 2006-2007-2008 (as a F-1/Optional Practical Training then J-1 visa holder) and for years 2010 and 2012 as a green card holder (did not have to do 2011 as my total income for that year was of about 4300 $). I just did my 2012 taxes with Human resources as usual. The guy told me to fill a form 8938 as I hold a non United States bank account with about $216000 in my home country (combination of the savings from my work before coming to the United States and a gift from my family). I filled it and I also put an estimate of the interest I made on this account in 2012 that is about $3100 (a mix of interest and capital gain coming from me playing a bit with the currency USD/EUR exchange). He also told me to fill a TD 90 F form by June 30 ( I will do). After all these things I made a personal research on these forms and I learnt that I should have declared this bank account in my homeland also in the past years (thing I did not do),the Human resource guy told me that is ok like that: Internal Revenue Services will appreciate my honesty in declaring it this year, but I don't buy it, I am fearing that IRS will come after me, triggered from the fact that I have a consistent amount of money abroad and they may ask me why I did not declare it before (I was not aware that was a requirement).
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2 ANSWERS

Bruce Givner
Yes. You could have liability if you failed to report the existence of a bank account and separate liability if you failed to pay tax on the income earned in the bank account. You need to come in quickly to get this addressed.
Answered on Apr 25th, 2013 at 12:49 AM

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Taxation Attorney serving Dana Point, CA at Don D. Nelson
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The Statute of limitations on the foreign bank account reporting is six years. The penalties can be extremely high if you fail to file that form. There are also possible criminal penalties. There are ways to file the past forms which will eliminate or reduce those penalties if you qualify. More facts would be required to provide any recommendation. More information is available a www.irs.gov.
Answered on Apr 22nd, 2013 at 10:17 PM

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