GringoPost | Ecuador: Tax filing, FBAR and Schedule B

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Tax filing, FBAR and Schedule B

The IRS will officially begin accepting e-filed returns January 29th. Do you understand the relationship between Forms 1040, Schedule B and FBAR?.........even if you would otherwise not meet any of the requirements to file Form 1040, if you have even 1 foreign bank account you must file Schedule B and answer questions 7a, 7b and 8. If you ignore this requirement, you are in a "non-filing" status which means there is no statute of limitations for the Service to come back to you. FBAR has its own filing requirements when the "aggregate" total of all foreign bank accounts exceeds $10,000 at any time during the year even if for one day. Form FinCen 114 is not filed with your Form 1040, but directly through the BSA website and is only an "information return."

You can find out all about your filing obligations, questions and penalties by researching Title 26 of the United States Code Section 6038D and Title 31 of the Bank Secrecy Act.

If you are in doubt about filing remember these quotes "The best defense is a good offense" as attributed to Mao Zedong or Carl von Clausewitz or another saying referred to as "The Crying Baby Syndrome" where the IRS is the "crying baby" and your filing a tax return is the "pacifier." It shuts the baby up, saves you a lot of headaches, and starts the clock running on the 3 year Statute of Limitations after which the IRS can no longer ask you for more money as long as no fraud was involved.

If you have questions, or need help contact me,

Be careful of following the advice of others who may not be qualified to give advice. Besides, if you follow that advice and it is not correct, you pay the penalty. Think about it, if you are experiencing fainting spells you wouldn't go see a veterinarian about what to do. Same with taxes and other important items in your life.

January 26, 2018,

John Papile:  098 168 7993