BKKSnowBird

Does anyone know if it possible to close a Thai account if I am now back in the US?

I do not want to deal with all this. I use to teach there and never closed my account when I left. I think there is now just a few hundred Baht left.

I think the day is coming when you will have to report all accounts regardless of balance.

I thought if you worked for a US company, you would not be able to exclude income. I thought it was only if you worked for a for a non-US company or self employed. Although if self employed, you still have to pay social security tax.

I read an article that a 2555 was rarely audited in the past but not the case anymore.

I have another tax question if anyone can help please?

I have been teaching in Thailand. I use 255EZ to exclude this income on my US tax return. I also understand you are only liable for social security tax if I entered my contract while still in the US. I found my job after I arrived.

If I was to get audited, what proof would I need? I am guessing my passport would be OK for the “physical presence test”?

I now have a contract, work permit, proof I pay Thai tax, but my first year teaching was with a shady company. I can’t even find my contract.

Anyway, I hope I don’t ever get audited, but it does worry me.

Any advice please?

^ Thank You. Yes, I think that is what I will do. I obviously was not trying to avoid tax. I have done more research and seems the 10K fine is only for failure to file an FBAR if required.

^ I 100% agree. In my case it was a mistake and will do a Schedule B in the future. I do not need to do a FBAR.

My question is what do I do now? Should I do amended returns? Again, the small amount that I did not report would not effect my tax liability, but worried about a 10K fine.

A big THANKS JimGant,

That is what I was looking for. Yes, reporting it now would not change any tax owed. In fact, after I use 2555, my adjusted gross income is less than $1000. I do have an IRA but that is just growing for my retirement and nothing to report. Some have said that you don’t even need to file a return as my income is so low? I would rather be safe than sorry so I file.

It just concerned me that Schedule B is required for a foreign account and leaving it off could cause a problem like a big fine.

I will report it in the future as I really didn't want to amend the last 4 years of returns. If I did get audited; could they fine me 10K for this? Anyway the bottom line is, all Americans must file a schedule B if they have an account outside the US even if it did not earn interest or require a FBAR.

If you earned 7 dollars in interest, you have got much bigger worries.

Care to explain?

Yes Lang,

I now see that last bullet. I never thought about it because I normally did not need a schedule B or need to do a FBAR.

It seems it would be easier for the IRS to say you must report any account outside the US through a FBAR OR Schedule B. The FBAR being required only if over 10K.

Any ideas on how to fix this or think I need to worry?

Hey guys, Can anyone give me a bit of advice please?

I just realized my Thai bank account earns interest. I honestly never thought about it. This account has only been used to get my teacher pay and not required to file a FBAR because the balance has never been over $2000.

I file a tax return every year. I report my US interest (maybe a few hundred dollars) and my Thai earned teacher income. I don't owe any US tax as I use form 2555ez.

I now understand I should have been using a schedule B to report my Thai bank account. I only earned about $7 in interest but understand schedule B is required if you have any account outside the US.

I realize I have basically under reported my income by $7 which may or may not be serious but since it is interest from a foreign bank may be?

Advice please?

You dont' need at 1099-INT nor will the Thai banks give you one. You report your foreigner earned interst on Schedule B and transfer it to your 1040 Form, the same as you would your U.S banking interest. But, it is UP TO YOU to track and keep records of your foreign earned banking intersted in case the IRS contacts you and wants more information.

Hey guys, can you offer some advice?

I just realized my Thai bank account earned interest. Therefore, I mistakenly did not report it to the IRS. It was only about $7. I use this account only to get my teacher pay and never had more than $2000 in it so not required to file a FBAR.

I now realize I should have done a scedule B but did not as my US interest was only about $100.

I owed no US tax but would hate for this to bite me one day. Should I file an amended return or just let it go?

Thanks.