Question about income from worldwide tax before moving to US

[corvusheart 163]

4 minutes ago, Suss&Camm said:

They are normally required to retain such information for a number of years... he should be able to request PDF copies... he can send copy of UK ID to a secure fax... shouldn't be a problem.

We will try that next week. I wish we knew how much we will owe the IRS. I only made 40k for the year of 2014. And his UK income will be at least under $3,000 in us dollars. I have no idea of the penalties and fines we will have to pay. And interest. And they won't throw us in jail right for reporting late? I don't want them to charge us with tax evasion.

[Suss&Camm 2,213]

6 minutes ago, corvusheart said:

We will try that next week. I wish we knew how much we will owe the IRS. I only made 40k for the year of 2014. And his UK income will be at least under $3,000 in us dollars. I have no idea of the penalties and fines we will have to pay. And interest. And they won't throw us in jail right for reporting late? I don't want them to charge us with tax evasion.

It's perfectly legal to amend your taxes within 3 years. Again, no penalties, no fines - you can do a preliminary counting and figure the taxes based on the approximate $3000, and you will get an idea of what the difference will be. Since he didn't make much and it only changes the bracket - the difference will not be much - as far as interest, find out the rate and you can calculate that as well... 

You are worrying too much - amending taxes happens all the time. You will be fine. 

Edited April 28, 2017 by Suss&Camm

[corvusheart 163]

9 minutes ago, Suss&Camm said:

It's perfectly legal to amend your taxes within 3 years. Again, no penalties, no fines - you can do a preliminary counting and figure the taxes based on the approximate $3000, and you will get an idea of what the difference will be. Since he didn't make much and it only changes the bracket - the difference will not be much - as far as interest, find out the rate and you can calculate that as well... 

You are worrying too much - amending taxes happens all the time. You will be fine. 

 I always thought if you didn't report something from years ago there's a lot of penalties and fines. I hear people talking about penalties and fines through the IRS all the time. So we will only be paying interest and not penalties or fines?

[Suss&Camm 2,213]

2 minutes ago, corvusheart said:

 I always thought if you didn't report something from years ago there's a lot of penalties and fines. I hear people talking about penalties and fines through the IRS all the time. So we will only be paying interest and not penalties or fines?

I don't know what the "fines" would be, but for penalties you can ask for an "abatement", since it'll be your first time. They aren't out to unjustly punish people who are trying to fix their past returns. Your "error", if you will, will actually result in quite a minor adjustment in your taxes (due to the exclusion).

[corvusheart 163]

8 minutes ago, Suss&Camm said:

I don't know what the "fines" would be, but for penalties you can ask for an "abatement", since it'll be your first time. They aren't out to unjustly punish people who are trying to fix their past returns. Your "error", if you will, will actually result in quite a minor adjustment in your taxes (due to the exclusion).

Is there a tax calculator I can use for amended taxes so I can get an idea?

[Suss&Camm 2,213]

Here is some information if you haven't read it

https://www.irs.gov/uac/what-to-know-about-late-filing-and-late-paying-penalties

 

The only penalty that might affect you (and if it does you can request abatement) would be the late penalty, since it was not intended. 

22 minutes ago, corvusheart said:

Is there a tax calculator I can use for amended taxes so I can get an idea?

What was your taxable income? 

To figure the new tax you would take the tax from your line 43 (+$3,000) MFJ in the tax table and then take the taxes for $3,000 from the table. You then subtract the later from the former. When you know the difference in this number to your former taxes you can enter it here: https://www.irscalculators.com/irs-penalty-calculator.php to see any intrest and penalty (if any).

Edited April 28, 2017 by Suss&Camm

[Suss&Camm 2,213]

assuming you didn't have any itemized deductions or exclusions..

[corvusheart 163]

6 minutes ago, Suss&Camm said:

Here is some information if you haven't read it

https://www.irs.gov/uac/what-to-know-about-late-filing-and-late-paying-penalties

 

The only penalty that might affect you (and if it does you can request abatement) would be the late penalty, since it was not intended. 

What was your taxable income? 

To figure the new tax you would take the tax from your line 43 (+$3,000) MFJ in the tax table and then take the taxes for $3,000 from the table. You then subtract the later from the former. When you know the difference in this number to your former taxes you can enter it here: https://www.irscalculators.com/irs-penalty-calculator.php to see any interset and penlaty (if any).

I read somewhere that you have to prove it was not intended how do we prove we didnt know about it? And i did read they can still criminally prosecute you..

 

What is a Reasonable Cause Statement?

As an alternative to the streamlined program, some individuals opt to just submitting all of the prior documentation that was not previously disclosed or reported, along with a statement detailing why they have reasonable cause for failing to do so. This is a risky move, because by doing so the person is disclosing all of their financial information to the Internal Revenue Service without any guarantee of non-prosecution. Since the penalties for failing to file and FBAR are exorbitant and even the non-willful person can be subject to a $10,000 per account penalty per year the applicant must bec careful.

What is Quiet Disclosure/Silent Disclosure

Honestly, it is a horrible idea to submit documents to the IRS via a Quiet Disclosure or Silent Disclosure. These type to disclosures occur when a person simply goes back and reports/discloses the accounts without entering any program or submitting a reasonable cause statement. If a person does this, than they may be subject to criminal prosecution. But if you have already done so you can still get right by the IRS and submit under the streamlined program if you are non-willful (there are some people who inadvertently filed a quiet disclosure or silent disclosure because they were did not know they were required to even submit to a program or pay a penalty)

 

 

[Suss&Camm 2,213]

looks like the difference (if you made 40k and he 3k) you would owe would be around $250 - which according o the calculator would add about $50 in total interest and penalty... so roughly $300 all in all.

[Suss&Camm 2,213]

2 minutes ago, corvusheart said:

I read somewhere that you have to prove it was not intended how do we prove we didnt know about it? And i did read they can still criminally prosecute you..

 

What is a Reasonable Cause Statement?

As an alternative to the streamlined program, some individuals opt to just submitting all of the prior documentation that was not previously disclosed or reported, along with a statement detailing why they have reasonable cause for failing to do so. This is a risky move, because by doing so the person is disclosing all of their financial information to the Internal Revenue Service without any guarantee of non-prosecution. Since the penalties for failing to file and FBAR are exorbitant and even the non-willful person can be subject to a $10,000 per account penalty per year the applicant must bec careful.

What is Quiet Disclosure/Silent Disclosure

Honestly, it is a horrible idea to submit documents to the IRS via a Quiet Disclosure or Silent Disclosure. These type to disclosures occur when a person simply goes back and reports/discloses the accounts without entering any program or submitting a reasonable cause statement. If a person does this, than they may be subject to criminal prosecution. But if you have already done so you can still get right by the IRS and submit under the streamlined program if you are non-willful (there are some people who inadvertently filed a quiet disclosure or silent disclosure because they were did not know they were required to even submit to a program or pay a penalty)

 

 

Part of your "proof" is you fixing it without being told to "fix it", but honestly you did what you were told by lawyer and tax professional. Immigration taxes are difficult. They prosecute when there is obvious criminal intent! You are overthinking this!

 

This is chump change to them, they will not prosecute over that.

Edited April 28, 2017 by Suss&Camm

[Suss&Camm 2,213]

Also the calculation above is based on 40k as "taxable income"... I'm assuming this was your whole income though so it would end up even less in that case.

 

[corvusheart 163]

Wages were $41,463. Taxable income was 21,163. Standard deduction was 12,400.

[Suss&Camm 2,213]

If I deduct the MFJ 12,600 and 8,400 from the 40k then the difference ends up being only $50 - for this amount there is no interest or penalties.

[corvusheart 163]

5 minutes ago, corvusheart said:

Wages were $41,463. Taxable income was 21,163. Standard deduction was 12,400.

Thats with this information that I specified?

 Also with not reporting and amending the tax form will this leave a bad mark when he applies for citizenship? Or would this hurt his ROC process?

[Suss&Camm 2,213]

10 minutes ago, corvusheart said:

Wages were $41,463. Taxable income was 21,163. Standard deduction was 12,400.

ok - I can't find the 2015 tax table right now... but using the 2016 table and assuming your husband made exactly 3k - (also still assuming no itemized deductions or exclusions)

 

your tax would have been 2249 without his income, and $2699 with his income. After excluding his income using the foreign earned income worksheet (and 2555ez) the taxes for the $3000 is subtracted ($303) making your new taxes $2396. The difference then comes out to 2396-2249=$149 - which is below $200 - and would not give any additional interest and penalties... you should owe around $150.

 

 

Edited April 28, 2017 by Suss&Camm