Streamlined foreign offshore procedures

Forum|Forum|5 years ago
January 6, 2021
9 replies
35 views

Hello,

Individual who lives overseas and wants to complete the SFO procedures didn't have any income in 2019 and 2020 but did have in 2018. Does file only 2018 together with form 14653 and the required FBAR (for the recent 6 years)? He does not need to file Federal tax return for 2019 2020 if there was no income, right?

Thanks,

ProConnect Tax

This topic has been closed for replies.

itonewbie

Level 15

Are you saying your client living overseas didn't have any gross income from any sources at all?

You'd want to make sure because the exposure of getting this wrong and the disclosure done incorrectly could be significant.

---------------------------------------------------------------------------------Still an AllStar

S

shachar1831Author

Level 4

Assuming that I verified carefully and this individual did not earn income above standard deduction in 2019 and 2020, but did so for 2018. Do you think it will be right to say that she is required to file 2018 tax return and FBARs for the most 6 recent years? (2015 through 2020 when exceeding the 10,000$ threshold).

itonewbie

Level 15

@shachar1831 wrote:
Assuming that I verified carefully and this individual did not earn income above standard deduction in 2019 and 2020, but did so for 2018. Do you think it will be right to say that she is required to file 2018 tax return and FBARs for the most 6 recent years? (2015 through 2020 when exceeding the 10,000$ threshold).

I suppose you meant gross income instead of earned income. If so and there are no other information reporting requirements (which may be triggered by certain foreign pension), then yes, go ahead and file the F.1040 for 2018 but I would explain why the other years' are not filed in F.14653.

As for FBAR, the correct years your client needs to file are 2014-2019 since 2020 is not past due.

2020 should be not be part of the streamlined procedures filing.

---------------------------------------------------------------------------------Still an AllStar

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