Delinquent FBAR Submission Procedures
A. This amnesty is only available, without any penalties and without making a voluntary disclosure where the taxpayer reported and paid tax on ALL their taxable income on their Form 1040's for prior years but did not file FBARs or other Delinquent International Information Return(s).
B. Taxpayers who do not need to use either the OVDP or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report and pay additional tax, but who:
(1) have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22-1),
(2) are not under a civil examination or a criminal investigation by the IRS, and
(3) have not already been contacted by the IRS about the delinquent FBARs
should file the delinquent FBARs according to the FBAR instructions and include a statement explaining why the FBARs are filed late. (Reasonable Cause For Waiver of Penalties)
Previously filed Form 1040 WithThe IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.
C. We contend that this procedure should also be available for nonresidents who do not owe any additional income tax on late filed form 1040 returns as a result of the expatriate exclusion for foreign service earned income ($92,200 for 2013) or because their foreign source unearned income did not exceed the personal exemption and the standard deduction (roughly $10,000 for a single person filing separately for 2013).