Closed India Regular Account Interest Payment entry with no account id and interest payment and only final payment information.

[bhagalx]

I closed India Regular Account last year in January 2025 and received the final check which I deposited into my NRO account. I do not have any records with account number and interest received in 2025 before closing the account. I only have the final check amount received.  I reached out to the bank for help to find the account number and interest received in February 2026. I was informed that they cannot provide the information per the new RBI guidelines for closed accounts. How do I enter this data into 1040 and also FBAR? Please advise.

[DaveF1006]

Thankfully,  IRS and FinCEN (for FBAR) have "reasonable cause" provisions for exactly this type of situation, where a foreign institution's policies or local laws prevent you from obtaining information regarding your financial accounts.

Since you are dealing with a closed account and a refusal from the bank, you must rely on reasonable estimation and diligent documentation.

The FBAR is primarily an information-reporting form. Even if you don't have the exact account number or the highest balance, you must still report the account.

1.  If you can't find any old emails, checkbooks, or transfer records with the number, enter "UNKNOWN" in the account number field.
2. Since you have the final check amount, use that as your "Maximum Value" for 2025, unless you know for a fact the balance was higher earlier in January. In the "Explanation" box (or as an attachment if filing via certain software), briefly state: "Account closed Jan 2025; bank refused to provide records per local guidelines; amount reported is based on final distribution check."
3. Enter the bank’s name and address as you remember them.
4. Report your FBAR here

You are required to report the interest earned in 2025 before the account was closed. Since the bank won't give you the figure, you must estimate it.

1. Look at your 2024 tax records to see the interest rate that account was earning. 
2. Apply that rate to the final check amount for the 1 month (January) the account was open in 2025.
3.  For example, if the amount of your check was $50K and your interest rate was 4%, interest for‌ Jan is computed as follows: $50,000 X .04 X 1/12

You don't need to send these to the IRS now, but you must keep them in your records for 5 years to prove you acted in good faith in case ‌they have questions about the distribution.

1. The Refusal: Save the email or take a scan of the letter from the bank where they cited the "new RBI guidelines" as the reason for denying your request.
2. Keep a copy of the final check and the deposit slip into your NRO account.
3. Keep a log of your attempts to contact the bank (dates, times, and who you spoke with).

To report in TurboTax:

1. Go to federal>income and expenses>all income>>show more 
2. Less Common Income> Start
3. Miscellaneous Income,>start
4. Other reportable income>start
5. Next screen asks Any Other Taxable Income>yes
6. Here give a description of the check and then an amount.  Call it the final distribution of a bank account
7. After this is entered, there should be an add button in the summary screen
8. Here describe this as interest for the distribution of a bank account and then the amount.

If you paid taxes to India for this distribution.

1. Go to Deductions & Credits > Estimates and Other Taxes Paid > Foreign Tax Credit.
2. When asked "Do you want the deduction or the credit?", select Take a Credit.
3. The screen will ask: "Before we begin, have you already entered all your foreign income?" Select Yes.
4. Select General Category Income.
5. Click Add a Country and select India.
6. On the "Other Gross Income" screen, enter your general income description and amount again (this populates Part I of the 1116).
7. Continue until the "Foreign Taxes Paid" screen. Enter the taxes paid on your general income.
8. Finish the interview for this category until you see the Foreign Tax Credit Summary.
9. If you paid a foreign tax on the interest, select add a foreign tax in the Foreign Tax Summary Section.
10. When it asks for a category, select the passive category
11. Then repeat steps 5-8 listed above.

Lastly you may have a 8938 FATCA filing requirement if the amount of your Foreign Account was over $75,000 at the time of the distribution if you were single or filing separately or $150,000 if married filing jointly. To file a 8938 in TurboTax:

1. Go to federal>other tax situations
2. Go to Other Tax forms>Miscellaneous tax forms
3. Prepare a report on Foreign Assets

[DaveF1006]

Thankfully,  IRS and FinCEN (for FBAR) have "reasonable cause" provisions for exactly this type of situation, where a foreign institution's policies or local laws prevent you from obtaining information regarding your financial accounts.

Since you are dealing with a closed account and a refusal from the bank, you must rely on reasonable estimation and diligent documentation.

The FBAR is primarily an information-reporting form. Even if you don't have the exact account number or the highest balance, you must still report the account.

1. If you can't find any old emails, checkbooks, or transfer records with the number, enter "UNKNOWN" in the account number field.
2. Since you have the final check amount, use that as your "Maximum Value" for 2025, unless you know for a fact the balance was higher earlier in January. In the "Explanation" box (or as an attachment if filing via certain software), briefly state: "Account closed Jan 2025; bank refused to provide records per local guidelines; amount reported is based on final distribution check."
3. Enter the bank’s name and address as you remember them.
4. Report your FBAR here

You are required to report the interest earned in 2025 before the account was closed. Since the bank won't give you the figure, you must estimate it.

1. Look at your 2024 tax records to see the interest rate that account was earning.
2. Apply that rate to the final check amount for the 1 month (January) the account was open in 2025.
3. For example, if the amount of your check was $50K and your interest rate was 4%, interest for‌ Jan is computed as follows: $50,000 X .04 X 1/12

You don't need to send these to the IRS now, but you must keep them in your records for 5 years to prove you acted in good faith in case ‌they have questions about the distribution.

1. The Refusal: Save the email or take a scan of the letter from the bank where they cited the "new RBI guidelines" as the reason for denying your request.
2. Keep a copy of the final check and the deposit slip into your NRO account.
3. Keep a log of your attempts to contact the bank (dates, times, and who you spoke with).

To report in TurboTax:

1. Go to federal>income and expenses>all income>>show more 
2. Less Common Income> Start
3. Miscellaneous Income,>start
4. Other reportable income>start
5. Next screen asks Any Other Taxable Income>yes
6. Here give a description of the check and then an amount.  Call it the final distribution of a bank account
7. After this is entered, there should be an add button in the summary screen
8. Here describe this as interest for the distribution of a bank account and then the amount.

If you paid taxes to India for this distribution.

1. Go to Deductions & Credits > Estimates and Other Taxes Paid > Foreign Tax Credit.
2. When asked "Do you want the deduction or the credit?", select Take a Credit.
3. The screen will ask: "Before we begin, have you already entered all your foreign income?" Select Yes.
4. Select General Category Income.
5. Click Add a Country and select India.
6. On the "Other Gross Income" screen, enter your general income description and amount again (this populates Part I of the 1116).
7. Continue until the "Foreign Taxes Paid" screen. Enter the taxes paid on your general income.
8. Finish the interview for this category until you see the Foreign Tax Credit Summary.
9. If you paid a foreign tax on the interest, select add a foreign tax in the Foreign Tax Summary Section.
10. When it asks for a category, select the passive category
11. Then repeat steps 5-8 listed above.

Lastly you may have a 8938 FATCA filing requirement if the amount of your Foreign Account was over $75,000 at the time of the distribution if you were single or filing separately or $150,000 if married filing jointly. To file a 8938 in TurboTax:

1. Go to federal>other tax situations
2. Go to Other Tax forms>Miscellaneous tax forms
3. Prepare a report on Foreign Assets

[DaveF1006]

Thankfully,  IRS and FinCEN (for FBAR) have "reasonable cause" provisions for exactly this type of situation, where a foreign institution's policies or local laws prevent you from obtaining information regarding your financial accounts.

Since you are dealing with a closed account and a refusal from the bank, you must rely on reasonable estimation and diligent documentation.

The FBAR is primarily an information-reporting form. Even if you don't have the exact account number or the highest balance, you must still report the account.

1. If you can't find any old emails, checkbooks, or transfer records with the number, enter "UNKNOWN" in the account number field.
2. Since you have the final check amount, use that as your "Maximum Value" for 2025, unless you know for a fact the balance was higher earlier in January. In the "Explanation" box (or as an attachment if filing via certain software), briefly state: "Account closed Jan 2025; bank refused to provide records per local guidelines; amount reported is based on final distribution check."
3. Enter the bank’s name and address as you remember them.
4. Report your FBAR here

You are required to report the interest earned in 2025 before the account was closed. Since the bank won't give you the figure, you must estimate it.

1. Look at your 2024 tax records to see the interest rate that account was earning.
2. Apply that rate to the final check amount for the 1 month (January) the account was open in 2025.
3. For example, if the amount of your check was $50K and your interest rate was 4%, interest for‌ Jan is computed as follows: $50,000 X .04 X 1/12 

To report in TurboTax:

1. Go to federal>income and expenses>all income>>show more 
2. Less Common Income> Start
3. Miscellaneous Income,>start
4. Other reportable income>start
5. Next screen asks Any Other Taxable Income>yes
6. Here give a description of the check and then an amount.  Call it the final distribution of a bank account
7. After this is entered, there should be an add button in the summary screen
8. Here describe this as interest for the distribution of a bank account and then the amount.

If you paid taxes to India for this distribution.

1. Go to Deductions & Credits > Estimates and Other Taxes Paid > Foreign Tax Credit.
2. When asked "Do you want the deduction or the credit?", select Take a Credit.
3. The screen will ask: "Before we begin, have you already entered all your foreign income?" Select Yes.
4. Select General Category Income.
5. Click Add a Country and select India.
6. On the "Other Gross Income" screen, enter your general income description and amount again (this populates Part I of the 1116).
7. Continue until the "Foreign Taxes Paid" screen. Enter the taxes paid on your general income.
8. Finish the interview for this category until you see the Foreign Tax Credit Summary.
9. If you paid a foreign tax on the interest, select add a foreign tax in the Foreign Tax Summary Section.
10. When it asks for a category, select the passive category
11. Then repeat steps 5-8 listed above.

Lastly you may have a 8938 FATCA filing requirement if the amount of your Foreign Account was over $75,000 at the time of the distribution if you were single or filing separately or $150,000 if married filing jointly. To file a 8938 in TurboTax:

1. Go to federal>other tax situations
2. Go to Other Tax forms>Miscellaneous tax forms
3. Prepare a report on Foreign Assets

[bhagalx]

@DaveF1006 

Thank You very much for the detailed explanation. This is very helpful, and very apt.

Thanks

[bhagalx]

@DaveF1006 

The foreign accounts that I will be reporting on FBAR for 2025 should be entered in Part III or Part II? One of the accounts was held jointly with my late father while the other was in my name only.  Please advise.

Thanks

[DaveF1006]

For the account that you owned jointly, that will be reported in Part 111 of the FBAR. For the account that is in your name only, this will be reported in Part 11.

[bhagalx]

@DaveF1006 

Thanks for the response.  Should this be a separate FBAR form as my spouse is not involved or can I combine (with and without my spouse) all the account details in one FBAR form? Please advise.

Thanks

[DaveF1006]

Since your spouse has no involvement with these specific accounts, you should report everything on one single FBAR form filed in your name only.

Even though you have different types of ownership (one account alone, one joint with your father), you do not need separate forms. You simply use different sections within the same Form 114 to distinguish them.

How to combine them on one FBAR:

Part II (Individual Accounts): Enter the account you own in your name only.

Part III (Joint Accounts): Enter the account you held with your late father.

In this section, you will report the full maximum value of the account, not just your half. You will also be asked for the "Number of joint owners" (which would be 2) and the information for the "Principal Joint Owner" (your father).

@bhagalx