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  1. @DK,

    That, I’m sorry to say, is a billable question. Takes brainpower and time. And a lot more facts. 🙂


  2. I have an account in country X in currency XC and my relative has an account in country Y in local currency YC. I need YC in country Y and my relative needs XC in country X. Can we do private swap? That is I transfer my money in country X to my relative’s account in country X and my relative transferred money in country Y to my account in county Y. What form do I have to file, if any?

  3. @patti,

    It is certainly possible to do late filings. Don’t jump willy-nilly until you understand the risks–the penalties that could be imposed.


  4. Thank you, that is what I thought. Now it is obviously past the filing date for that form, is it possible to file it now with an explanation to show that it was not intentional)?

  5. So if a person has a superannuation fund in Australia and becomes a US resident (before receiving the funds) they need to report this fund on form 3520A and form TD F 90-22.1?

  6. Mike/Phil,

    I also wonder if your advice (filing FBARs going forward ) only applies to expat, or people in US as well?

    Also in what scenarios do you suggest your clients to participate the (new) OVDP?


  7. Mike/Phil,

    Do you think if filing FBARs going forward (from tax year 2010) would give IRS more hints/leads to start investigating the taxpayer?


  8. Let me echo what Michael said. He’s exactly right. Especially, I want to emphasize that people take a very careful and skeptical look at the new VDP program (Michael’s choice number 2). This is not legal advice and I am not your lawyer, etc.

    The VDP #2 is a program that cannot help but fail.

    — The penalties are disproportionate for everyone except those egregiously guilty of tax evasion.

    — The expectation that all required paperwork for 2003-2010 can be completed and filed by the deadline is ludicrous.

    One wonders why the IRS would deliberately implement a plan so obviously intended to fail.

  9. I would urge you (and others in your situation) not to make the mistake of thinking the only two choices are (1) continue to do what you’ve been (not) doing (which now becomes willful), and (2) make a formal voluntary disclosure to the IRS. One option that probably makes more and more sense for a great many people in your position is to start filing FBARs (and including the income on your 1040s) going forward, and leave it at that. The IRS could potentially audit and assert penalties, but even if they do (which they very well may not), they penalties that they can reasonably collect will in many cases be far less than the 25% (formerly, 20%) they expect with a formal voluntary disclosure.

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Tax laws change over time, and the information in this post above may be less accurate today than it was at the time of the last revision. This post is not tax advice for your specific situation. Please contact an international tax professional to get personalized advice for your situation.