SkyMan

US - IRS Easter present for Americans

25 posts in this topic

3 minutes ago, SkyMan said:

Ok, well, I guess I would consider a foreign owned bank in the US to be a US bank assuming it has all the same US regulations, etc.  I have never considered my US HSBC account to be foreign.  

 

But then you pay interest and penalties on the money, right?  The interest isn't much but the penalties hurt.  Also, I would think paying late would increase the odds of the IRS Eye of Saron falling upon you.

A lot of retirees use foreign banks in the USA as a way to receive allotments etc.  These banks, in order to operate in the USA, have to comply with the various USA reporting requirements.  In effect, they are not reported to FBAR because they are already compliant.  However, that same bank (e.g. Metrobank) will have accounts locally used by foreigners which must be reported using FBAR guidance.  

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5 hours ago, Tom in Texas said:

In US or not, can file extensions to file to Oct 15.  Hold on to the $ 6 months, and easier to predict circumstances for next year.  

They aren't automatically approved. I had one denied for a business entity last year. 

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6 hours ago, SkyMan said:

But then you pay interest and penalties on the money, right?  The interest isn't much but the penalties hurt.  Also, I would think paying late would increase the odds of the IRS Eye of Saron falling upon you.

Penalty for 6 months delay about 3% x tax owed.  The computer audit algorithm used to select returns for audits reportedly does not factor in late payment (per BDO who does mine), but who really knows.  Reportedly, deductions in amounts greater than certain percentage above median amount for similar incomes is the main factor.  

Out of curiosity, just Googled, and for 2015 overall audit risk was 1 out of 119, with factors such as home office and self employment driving up the specific risk.  

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3 hours ago, Monsoon said:

They aren't automatically approved. I had one denied for a business entity last year. 

Businesses may be different.  Individual 1040 extensions are automatic.

Per Intuit site - You can obtain an extension for any reason; the IRS grants them automatically as long as you complete the proper form on time.  Filing a tax extension is free, easy and automatic: Just submit Form 4868 electronically or on paper by the April filing deadline.

Per IRS.com site - Mark Luscombe, principal analyst at CCH (a Wolters Kluwer business) says, “You can get an automatic six-month extension to file your federal income tax return by submitting a Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) by the due date for the tax return, April 15.”

 

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5 hours ago, Tom in Texas said:

Penalty for 6 months delay about 3% x tax owed.

Yeah, I'm not crazy about paying taxes as it is.  I'm definitely not going to pay additional tax on my taxes.

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