If you had a retirement account or a somewhat dormant checking a/c sitting in your country of prior residence and you forgot to mention that in your tax return, what are the best remedies available? Can you disclose it now? Will you get any issues as a result of disclosing it now?
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Forgotten bank account
- Thread starter uws101
- Start date
TheRealCanadian
Volunteer Moderator
Did it have over $10,000 in it? How much interest income did you receive?
Did it have over $10,000 in it? How much interest income did you receive?
The checking has about $3k and receives 0 interest - no income was received.
The retirement account is not to be withdrawn until you reach a certain age - it was invested and has been growing - currently over $10k.
As long as you don't bring the money into the US there is no need to mention it (corporations routinely do it).
But if you do decide to bring it, it might be taxed. Of course, if it gets taxes at your own country then you may get a Foreign Tax Credit. That's regarding your retirement account.
As for checking, I don't think there any issues with that if it was there before you became US tax resident. However, if you received the income in your checking account after you became one you might have to declare that income.
But if you do decide to bring it, it might be taxed. Of course, if it gets taxes at your own country then you may get a Foreign Tax Credit. That's regarding your retirement account.
As for checking, I don't think there any issues with that if it was there before you became US tax resident. However, if you received the income in your checking account after you became one you might have to declare that income.
TheRealCanadian
Volunteer Moderator
As long as you don't bring the money into the US there is no need to mention it (corporations routinely do it).
This is completely incorrect. Any account that had over $10K US in it at any point during the year must be declared. All interest income needs to be declared, no matter what the amount.
Actually, you have to report on the FBAR form (not your tax return) any foreign account if the aggregate peak reaches $10,000.
That means that if you have 10 accounts holding $1000 each, you are required to file a FBAR.
Form 8938 needs to be filed with your tax returns but the thresholds are higher.
That means that if you have 10 accounts holding $1000 each, you are required to file a FBAR.
Form 8938 needs to be filed with your tax returns but the thresholds are higher.