Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Foreign Income - I have a new taxpayer client. * She is a US…

Foreign Income -I have a...
Foreign Income -I have a new taxpayer client.
* She is a US citizen.
* Was married in Austria and still married to the Austrian.
* Marriage is not recognized in the US.
* Has rental house in US, no earned income in US
* Works as tutor in Austria approximately $ 30K a year before Austria taxes
* Spends less than 30 days a year in US - usually just a couple of week long visits.
* She does have a joint bank account - foreign with her spouse and the aggregate is over $ 10KAll of the above, was her tax situation starting in 2011. The prior account just completed a 1040 with Schedule E, no FIN and no reporting of world wide income. He informed her it was not necessary because she earned so little.1. Her taxable income would not have changed over the year if she correctly reported all income and used the foreign income exclusion (which she would have qualified for all years).
2. She was very concerned about having to report the joint bank account and providing those account numbers especially since the husband is not a US citizen.What type of penalties or problems can be lingering on her for those years of incorrect filling and not reporting bank account?When she files correctly this year, will it raise any red flags or create/generate any IRS notice?What else should she be concerned about?Thanks,
JW
Show More
Show Less
Ask Your Own Tax Question
Answered in 10 minutes by:
8/11/2017
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Tax Question

It appears, base don the amount fo rteh foreign account, that her penalty would be for FBAR non reporting and not the higher FATCA penalties.

If an individual fails to file the FBAR, the IRS can impose one of two civil penalties:

  • A nonwillfulness penalty, not to exceed $10,000, may be imposed on any person who violates or causes any violation of the FBAR filing and recordkeeping requirements (IRM §4.26.16.4.4); or
  • A willfulness penalty may be imposed on any person who willfully fails to file the FBAR, with the ceiling on the penalty being the greater of $100,000 or 50% of the balance in the account at the time of the violation (IRM §4.26.16.4.5.1).

Significantly, the nonwillfulness penalty should not be imposed if an individual’s violation was due to reasonable cause and the balance in the account was properly reported on an FBAR (IRM §4.26.16.4.4). This may be her saving point because she relied on a professional and their advice.

She should correct this non filing. Filing correctly now may not draw attention to her that is really unknown but the past can be corrected now.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 11 months ago
thanks
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
18,220 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

18,220 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My Mom-in-law, retiree,permanent resident since 2014, lives
My Mom-in-law, retiree,permanent resident since 2014, lives with us. She has not been claimed as a dependent on our tax returns Her retirement income through savings/deposits/pension is less than $7K … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a citizen of Austria Germany. However, the last 17
Hello, I am a citizen of Austria Germany. However, the last 17 years, I have been married and am a resident of the United States in San Antonio, Texas I have recently got divorced. In the divorce sett… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I recently married a woman from England who has a large inheritance
I recently married a woman from England who has a large inheritance in a bank in the UK. When we transfer the mon … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I will receive a $25K inheritance from my Mom who passed away
I will receive a $25K inheritance from my Mom who passed away last year. She was an Austrian citizen living in Austria. I'm an Austrian citizen with a green card, living in the US for the last 15 year… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have the following VAT question. A Bulgarian-based company
I have the following VAT question. A Bulgarian-based company is providing services and software to an Austrian-based company. All services are performed in Bulgaria and all services and consumed in Au… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
IF A TAXPAYER INADVERTENTLY NEGLECTED TO REPORT THAT HE HAD
IF A TAXPAYER INADVERTENTLY NEGLECTED TO REPORT THAT HE HAD OPENED A FOREIGN BANK ACCOUNT IN CANADA IN OCTOBER 2013. AND THE FORM 1040 WAS FILED WITHOUT THE FORM 8938. HOW IS THIS REMEDIED. SHOULD AN … read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
We want to be a smart couple on tax planning. My fiancee
We want to be a smart couple on tax planning. My fiancee' has cash and property assets in China and has not yet applied for her Green Card in the U.S. How do we report? Is there something like a one t… read more
Phillip Bell, EA
Phillip Bell, EA
Tax Advisor
Bachelor's Degree
191 satisfied customers
Got engaged to a Thai woman in Thailand and we then married
Got engaged to a Thai woman in Thailand and we then married in U.S. in 2005. We had a joint bank account in Thailand my name and her Thai maiden name that was supposed to be for her family. The only u… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
Im a US citizen freelancing for an Austrian company. Does
I'm a US citizen freelancing for an Austrian company. Does that company need to withhold any taxes (pay to the Austrian goverment) or report income to the Austrian government? And if they do pay withe… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a green card in the US, but moved to Austria and want
I have a green card in the US, but moved to Austria and want to love there now. I do have no income in the US anymore. I do have a bank account here and moved money from the US to this account. Do I h… read more
Shawn P. Adamo
Shawn P. Adamo
CEO
Bachelor's Degree
18 satisfied customers
My father lives in Austria but is still an American citizen.
My father lives in Austria but is still an American citizen. He has been there over thirty years and has always filed his taxes, until last year. He is 86 years old, blind and last year he had a strok… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
My fiancé (Foreigner, not a US citizen, currently working and
My fiancé (Foreigner, not a US citizen, currently working and living in Hong Kong) and I (US citizen, working and living in the USA) would like to consolidate our bank accounts in to one US based bank… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am an american woman married to a French citizen I do not
I am an american woman married to a French citizen I do not work, we live in France My Husband is French and file for taxes in France DO I need to fill the form TDF 90 22 1? Do we need to pay US taxes… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My sister-in-law and her family (her husband, and two teen-age
My sister-in-law and her family (her husband, and two teen-age daughters) arrived in US August this year as immigrants(green card holders). Her husband went back to where they came from outside the US… read more
socrateaser
socrateaser
1,031 satisfied customers
Do I need to pay inheritance tax if my mother who lives in
Do I need to pay inheritance tax if my mother who lives in Austria dies while I am resident in Finland or Canada i.e. in a country that has inheritance tax? My mother is an Austrian citizen and this q… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My daughter & her husband received thier green card in Oct
My daughter & her husband received thier green card in Oct 2009. They want to purchase their first home and daughter wants to bring her money from India to make down payment of US$100000(Equity) and b… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
My wife is Thai, we both live in Thailand. I retired 7 years
My wife is Thai, we both live in Thailand. I retired 7 years ago. My wife owns a Thai company and added my name to some bank accounts in 2008, accounts whose funds are derived from her business. She d… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I married a woman from France. She has assets in banks there
I married a woman from France. She has assets in banks there that we sometimes transfer to our USA account. She also works as a consultant in France but pays no tax in France because the income is tra… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x