Hello, Anthony and Claudia. We have clients who often ask us if they can amend their F bars. Today, we are going to discuss whether they can and, more importantly, should they. There are several reasons why people may need to amend their F bars, such as forgotten offshore accounts. It may sound silly, but you might have an account that you never use, which was left to you by a family member in Italy, and you simply forget about it. Additionally, incorrect balances can also require amendments. Many people are surprised to find out that if they have signatory authority, they have to file an F bar for joint accounts as well, including husband and wife accounts, life insurance, and pension plans. Although these accounts may not be considered foreign bank accounts, they still need to be reported and may face scrutiny and severe penalties if not filed correctly. Amending an F bar implies a higher standard of knowledge, which can work against you. This is a twisted aspect of US law. If you amend an F bar and it is not correct, you are in a worse position compared to someone who didn't even file or filed incorrectly. The IRS examiner may argue that since you knew enough to amend the F bar, you should have done it correctly. They may assume that being educated in your field means you are knowledgeable about the Bank Secrecy Act, which is not related to tax compliance but falls under the IRS's jurisdiction. Therefore, if you decide to amend an F bar, it is crucial to understand the potential consequences during an audit. The penalties associated with F bars have deviated from the original purpose of the law established in 1970. The law aimed to provide a tool for law enforcement to penalize...
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Video instructions and help with filling out and completing What Form 3520 Amended
