My husband and I recently learned that we need to file Form 8938 and FBAR for our bank accounts in Japan. We didn't know we had to, and we would like to correct this situation as soon as possible.
- We know that statute of limitation for Form 8938 is 3 years, whereas it is 6 years for FBAR. We would like to submit them for previous 3 & 6 years as soon as possible.
- We also learned that filing Form 8938 for previous years would involve amending Form1040 for each year, although the interest rate has been so low that the interests incurred likely are not much worth reporting.
- We want to start filing these forms starting this year (i.e., for year 2024) on time.
- However, we’re wondering if it would be a problem if we file 2024 forms (including 1040) before filing/amending them for previous years, because IRS would likely find out about our Japanese accounts as soon as we file something about them, which may put us at risk for being penalized for the previous years not yet reported…!?
Our question is: in theory, it probably makes more sense to file for the previous years first then for 2024, but given the deadline for 2024 forms coming up, we’re wondering if we should 1) file for extension for 2024 and then do the previous years forms first, then file 2024; OR 2) go ahead and file all of 2024 forms first, then file the previous years ASAP.
TIA for your advice!
