Hi, I have filed FBAR consistently from 2014 till 2019, but missed for the years 2020 and 2021. I do not remember whether it was due to a misunderstanding or I simply forgot. I vaguely recall thinking it's not required anymore to file it separately since we report the same in Form 8938. I now realized that I need to do delinquent fbar filing for the past 2 years now. A few questions -
1. Is there a way to check if I filed it for a previous year? The link https://bsaefiling1.fincen.treas.gov/NoRegSubmissionStatusLookup only allows checking the status of submission in the last 60 days.
2. For the reason of delinquent filing, does it matter if I specify "I forgot to file" or "Did not know that I had to file"?
3. I have not received any communication from IRS and I trying to understand the consequences (penalty) now. As per this link https://www.irs.gov/individuals/international-taxpayers/delinquent-fbar-submission-procedures -
"The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted."
I have reported and paid taxes on my foreign income during these years and also reported all the foreign accounts on Form 8938. Does this imply I am not liable for a penalty based on the above statement?
thanks
Santosh
Here is a handy IRS document that may clarify your FBAR concerns. You may also check the information given on this site to find out if you filed a previous FBAR. There is a phone number listed to check if that number is still in service.
Follow these instructions to explain your reason for filing late. If you’re using a compliance option, such as the Streamlined Filing Compliance Procedures, follow the instructions for the specific compliance option. You may use the reasons you mentioned as these are legitimate reasons for not reporting these on a FBAR report. If this isn't listed in the drop-down as suggested, you may wish to use "other" and explain your reason for not reporting.
It does mention in the link that you provided that you will not be imposed a penalty for failing to report the FBAR's if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs and have not been contacted by the IRS. You are not liable for any penalties if you are in complete compliance in reporting these on your tax returns.