QUESTION

Will the IRS come after me if I have an international bank account?

Asked on Apr 15th, 2013 on Taxation - Michigan
More details to this question:
I would need you to answer 2 very simple questions, but before than that I need to give you a (long) explanation of the facts, I am trying to be as clear as possible: I have been working on a visa in the US in the years 2006-2007 and 2008, then left the country and came back in 2010 as green card holder, starting to work again in the US. 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 years 2006-2007-2008(as a F-1/OPT then J-1 visas holder) and for years 2010 and 2012 as green card holder (did not have to do 2011 as my total income for that year was of about 4300 $). Now it comes the complicated situation: I just did my 2012 taxes with H&R as usual (guess is going to be the last time as I find them utterly unprofessional and not knowledgeable). The guy told me to fill a form 8938 as I hold a non US bank account with about 216000$ in my home country (combination of the savings from my work before coming to the US 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 H&R guy told me that is ok like that: IRS 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), I read that there are crazy penalties and I am scared to death. To make it more complicated.
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1 ANSWER

Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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Call for an appointment, we will get you an accountant who will work for the firm and therefore be subject to the attorney client confidentiality rules. Your accounts and taxes must be straightened out or you will be denied citizenship, and perhaps your visa/green card revoked. Do it now, it is better to fix it now than to await being noticed and audited.
Answered on Apr 18th, 2013 at 7:48 PM

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