Error made in form 8938 Part V line 23 noticed after filing - How to correct

[gnk979]

I have made an error in my 8938 Part V line 23 - and wrongly reported the amount as $24,320 instead of $2652 (error made in the conversion from Foreign Currency to USD). The return has been e-filed and accepted (by Fed and State).

I know that there will be no change in the Fed or State taxes - but I want to know how to correct this ? Also I have not yet filed the FBAR.

Any guidance would be appreciated. Thank you

[SusanY1 · Accepted solution]

The FBAR/FinCEN 114 report doesn't go to the IRS so there presently isn't routine cross-checking between the reports.  Although I am sure, if needed, the IRS can request that information. 

Since you over-reported the value, amending your tax return to adjust the value isn't as critical as if you had under-reported it. However, I understand that you would like for your records to be as accurate as possible.  For that reason, I would go ahead and file the amended return even though it will not change the tax on your return (it won't change your tax due or refund owed to you.) 

You will find instructions on how to do this in TurboTax HERE.

When you get to the part that requests an explanation, just indicate that you are filing to amend over-stated values on Form 8938 due to entry error.  

[gnk979]

Thank you for the prompt response and answer. I do have an additional question - Should the amendment be filed after the return was accepted (e-filing) or after IRS has processed the return (indicated by receipt of refund in my bank account) ?

[DaveF1006]

Yes. According to the IRS, If you are filing an amended tax return to claim an additional refund, wait until you have received your original tax refund before filing your amendment.

IRS Amended Return Faqs

[gnk979]

There will be no change in the refund amounts (or taxes owed). It's just that the form 8938 (Part V line 23 that needs to be corrected) and form 8938 is a 'Statement of Specified Foreign Financial Assets, Form 8938 one of the forms expats use to tell the IRS about financial holdings abroad'.  In short its a declaration and there are no taxes owed (unless the assets are sold or there is income generated).

So should I wait until my taxes are processed by the IRS ? or I can e-file using Turbotax Desktop Deluxe 2023 right away?

[DaveF1006]

No, you will need to wait until the IRS processes your return before filing the amendment.

@gnk979