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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3820
Experience:  20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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I bought mutual funds 8 years ago abroad. I never reported

Customer Question

I bought mutual funds 8 years ago abroad. I never reported thess investments and dividends received on mutual funds invested abroad on my US tax returns . Whats the procedure to report and pay tax on previous years. How much tax professional will take to fix last 8 years of missing investment information
Submitted: 4 years ago.
Category: Tax
Expert:  Barbara replied 4 years ago.

Welcome and thank you for giving me the opportunity to assist you with your tax question.


You would be required to report the dividends on your tax return each year, and in the event you sold any of the funds, you would be required to report such a sale.


Would you mind giving me an idea of the approximate amount of dividends you received each year so I could determine if it would impact your tax return?


Thank you.

Customer: replied 4 years ago.

Thanks for the prompt reply. Actually my dividend always reinvested. I never receive or get cash. Dividend declared and re-invested as follows


2008 = 2000

2009 = 4000

2010 = 6000

2011 = 8000

2012 = 10000

2013 = 14000


Note: I never get cash all my dividends re-invest automatically.


Current total value around $ 50,0000. But in 2005 it was $ 10000

Expert:  Barbara replied 4 years ago.
Even though you did not actually receive the dividends and they were reinvested, they are still considered as being paid to you or income for tax purposes. I would suggest you amend your returns to include this information. It is always best to give the IRS information before the IRS contacts you.
Customer: replied 4 years ago.

How much a tax professional charge me to file these amendments for last 8 years. Do I have to report dividend only or mutual fund price also?. I need answer in detail . Thanks

Expert:  Barbara replied 4 years ago.

Fees that tax professionals charge vary, and I cannot recommend a specific person or company per Just Answer site rules. I would contact a major tax preparation company such as H&R Block, local CPAs and/or Enrolled Agents in your area and give them your information so they will be able to give you an idea of their fees.


You would report the dividend income received (reinvested).



Expert:  Barbara replied 4 years ago.

Hi, Mas.


I do not understand your poor service rating of my answer to you. Per site rules, I cannot give you specific information about the fees that a CPA or tax preparer will charge you to amend your tax returns as fees vary greatly from one individual or company to another.


Also, I informed you that you would need to report the dividend income on your tax return. For instance, you said that in 2008 you received $2000 in dividends. That amount would need to be reported on your 2008 tax return.


Please let me know if you require additional information or clarification, and I will be happy to assist you.


Thank you.