Forgot to click Foreign account check box as Yes in Schedule B part 3, 7a 7b . Do I need to amend?

[valleybuy]

 I attached foreign banks accounts in 8938 (over $50K but forgot to click Foreign accounts =Yes(left as default = no by mistake) while submitting. This check box is for Schedule B  part 3 questions 7a 7b .

Returns are accepted but in IRS transcript shows "foreign acct ind"=NO

Should that matter or needs to be amended to show as YES as forms are sent? I have done FBAR/Fincen for these accounts

Does it need amendment?

[pk]

@valleybuy , even though IRS Schedule-B uses  "must fill out" the tick boxes there is NO requirement for an amended return  -- (a) amended  returns are for cases where there is a difference in either taxable income and/or tax liability ;  (b) there is no curative mechanism  for the error you quoited;  (c) Note that this  tick boxes are to cover the case where the filer has foreign income ( passive ) but does not meet the requirements(s) for FBAR ( FinCen form 114 ) and/or FATCA ( form 8938 ). 

Thus my opinion / suggestion would be to hold still and see the IRS come calling , in which case admit error and there should be no further issue.   I say this because the governing requirements are the FBAR and FATCA -- which you have complied with.

Is there more I can do for you ?

[valleybuy]

Thank you for responding , what is the curative mechanism ?

For all amendments for last 3-4 years I have it wrongly as No. does that change anything ?

[pk]

@valleybuy , curative is when IRS send a form for you to sign --- they sometimes make obviously missed items , repair the error and send you for signature  ( your return has to be signed somehow ( digitally or wet ).

If you have made the same error for the past few years, I would not wake up that sleeping dog.  If IRS needs  something  ( especially they more payment ) they will come back to you.

Is there help you need ?

[valleybuy]

Thanks for follow up inputs , this surely helps