My spouse received his green card in early 2018. Even though he wasn't an official resident in 2017, he passed the physical presence test (which we just found out).
We submitted married filing jointly in 2017, but didn't claim his accounts in France on the FBAR (4 accounts totaling around $65K) and didn't claim interest earned (not very much). What is the best way to rectify for 2017?
I know that we can simply submit the FBAR for 2017 online with reasoning as to why we forgot but how does it work to amend the 2017 tax return? Is there a best practice with this case?
We legitimately thought that since he got his green card in 2018, this is the year that he should claim.
Any advice would be much appreciated.
You can file a 1040X to amend your 2017 tax return and attach Form 8938 to include the missing foreign financial accounts. As for your reason for amending your tax return, you can explain that your failure to include the foreign bank accounts and foreign income interest was “non-willful”. “Non-willful conduct” is generally defined as “conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law.” You can contact an attorney or accountant to assist you in drafting your response.
You may file Form 1040X any time within 3 years of the original due date. However, I recommend rectifying the issue before the IRS contacts you regarding the discrepancy.
I have included some of the links below.
Best of luck.
Agree with Mr. Lanthia. You should file an amended return: sooner, rather than later. In addition, you would be wise to have a tax professional -- CPA, enrolled agent, or tax attorney -- prepare your 2018 return, as well as the amended 2017, so that these returns are prepared correctly.
Ms. Willi is a tax attorney, CPA, and Ohio-Certified Specialist in Estate Planning, Trust & Probate Law, with offices in Westerville, Ohio. She serves client families and private business owners throughout Ohio. Ms. Willi responds to Avvo questions as a public service to help educate and provide general guidance to questioners, but her responses are not legal advice and do not create an attorney-client relationship. Her posts are provided for informational purposes only and are not a substitute for advice provided by an attorney or licensed tax professional. Her phone number is 614-890-0500 and her website is www.willilaw.com.
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