IsabellaG
Expert Alumni

After you file

I can't say that it would/wouldn't trigger an audit, but you will definitely pay interest on the balance due. I'd include a statement with my 1040X that you didn't realize the interest was taxable. There are possible penalties<a rel="nofollow" target="_blank" href="https://www.irs.gov/irm/part8/irm_08-017-007.html">https://www.irs.gov/irm/part8/irm_08-017-007.html...> , but the main point is to file the amendments and the FBARs as soon as possible, before the IRS contacts you about this issue.
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