Question

Forgot to click Foreign account check box as Yes in Schedule B part 3, 7a 7b . Do I need to amend?

Forum|Forum|2 years ago
September 22, 2023
1 reply
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I attached foreign banks accounts in 8938 (over $50K but forgot to click Foreign accounts =Yes(left as default = no by mistake) while submitting. This check box is for Schedule B part 3 questions 7a 7b .

Returns are accepted but in IRS transcript shows "foreign acct ind"=NO

Should that matter or needs to be amended to show as YES as forms are sent? I have done FBAR/Fincen for these accounts

Does it need amendment?

P

pk12_2

Employee

@valleybuy , even though IRS Schedule-B uses "must fill out" the tick boxes there is NO requirement for an amended return -- (a) amended returns are for cases where there is a difference in either taxable income and/or tax liability ; (b) there is no curative mechanism for the error you quoited; (c) Note that this tick boxes are to cover the case where the filer has foreign income ( passive ) but does not meet the requirements(s) for FBAR ( FinCen form 114 ) and/or FATCA ( form 8938 ).

Thus my opinion / suggestion would be to hold still and see the IRS come calling , in which case admit error and there should be no further issue. I say this because the governing requirements are the FBAR and FATCA -- which you have complied with.

Is there more I can do for you ?

V

valleybuyAuthor

Thank you for responding , what is the curative mechanism ?

For all amendments for last 3-4 years I have it wrongly as No. does that change anything ?

P

pk12_2

Employee

@valleybuy , curative is when IRS send a form for you to sign --- they sometimes make obviously missed items , repair the error and send you for signature ( your return has to be signed somehow ( digitally or wet ).

If you have made the same error for the past few years, I would not wake up that sleeping dog. If IRS needs something ( especially they more payment ) they will come back to you.

Is there help you need ?