K3 and foreign account interest

[aa2014]

Hi all - this question has 2 parts:

1. I received a USO funds K-1. In it, the box is checked where it says, Received K3. However I never received a K3. What should i do here?

2. I have a foreign bank account, which has earned a small amount of interest. Do I need to report this and if yes, how do i report this in TT?

Thanks a lot!!

[Anonymous_]

@Mike9241?

[Mike9241 · Accepted solution]

1. I received a USO funds K-1. In it, the box is checked where it says, Received K3. However I never received a K3. What should i do here?

https://www.taxpackagesupport.com/USO 

after you log in you'll come to a page that says the k-3 is available online (by accessing k-1) - from what I seen most PTPs are not sending out K-3's they must be accessed online

2. I have a foreign bank account, which has earned a small amount of interest. Do I need to report this and if yes, how do i report this in TT?

yes it must be reported unless less than 50 cents   - in Turbotax go to investment income add a 1099-INT even though you didn't get one. all that's needed to be entered is bank's name and interest after converting to US $s unless you paid income taxes to that country on the interest. Turbotax should take you through that one you get to the interest income section and answer some questions but you may have to visit the foreign tax section later unless you want to forgo the credit or deduction

this does not address whether you have foreign account reporting. see FINCEN Form 114 (FBAR) for instructions. Turbotax does not do the form

https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-a... 

[aa2014]

@Mike9241 

Thanks a lot. 

It seems like there were small amounts of interest (<$20) in a few previous years as well that I did not report.

Is that a big issue? Would I have to change all previous tax returns or can i ignore it since it's such small numbers?

[aa2014]

@Mike9241 

Please let me know. Appreciate your help

[Mike9241]

it's not a big issue. but income should report all income.  years ago, when I handled client audits, the agents never bother to make small adjustments. like say for a $50 charitable contribution for which the client did not have the receipt.  the agent had every right to change the return and then the IRS would bill for taxes penalties and interest. The agent passed on the adjustment, he intimated the reason was that the cost of him writing up the forms to do the adjustment which then have to be reviewed by a supervisor and then processed thru the IRS computer system to generate a bill for less than $10 would cost the IRS more than the $10.   this was years ago. and a particular agent. whether this is common policy today with the IRS is unknown