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Form TD F 90-22.1 + new permanent residency status

It is stated by the IRS that non-resident aliens are not required to provide the form TD F 90-22.1. We became green card holders by middle

2005 (after more than 7 years as working visa holders)and we have just now realized that the above mentioned forms should have probably been filed in June 2006, 2007 and 2008 but were not. What could be the best way to handle this now ? Consult a tax attorney with the goal of starting the filing process in June 2009 with information pertaining to 2008 and keep on the "straight and narrow" from 2009 onwards ? And, at the same time, address the issue related to the foreign interest + dividends (both taxed at the source) that were at the origin of the cash in the foreign account, by invoking the foreign tax credit via form 1116 after or in parallel with reporting the interest and dividends from the mentioned foreign sources via the standard form 1040 ? There was no intention to "hide" the foreign account and "avoid" declaring foreign-related interest and dividends, of course. The lack of a tax treaty between the US and our home country + the complications imposed on the tax payer in the home country as far as money transfers are concerned seemed to impose on us, taxpayers to both countries, a cruel, extremely time-consuming and expensive process.

Any suggestions or advice ?

Thanks,

Z.R.

Reply to
worley
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Consulting a tax attorney is a good idea if you owe in taxes a lot or had a large account.

Was your foreign account balance under 10k? If yes. then TD F 90-22.1 is not required.

Does the absence a tax treaty between the US and the country of citizenship mean that you can still get the double taxation benefit -- ie. taxes paid to the country of citizenship will be removed from taxes due to the US?

You mention that you were working for 7 years under a visa. Was it an H1-B visa? If so, then you are required to file a regular 1040, though maybe not in the first year because you may have been in the country for under 183 days. While this entitles you to benefits such as the itemized deductions, earned income tax credit (though if you are on H1-B you probably make too much to qualify for this benefit), child care credit, stimulus checks, etc, it also, I think, means that you are a US person and have to declare you worldwide income on form

1040, as well as file form TD F 90-22.1.
Reply to
removeps-groups

Sorry for the typo. I meant to write "standard deduction" instead of "itemized deduction". Filers of 1040-NR have to take the itemized deduction, with a few limited exceptions (such as Indian apprentices). So if you have no mortage, the likely your itemized deduction will be very small. So that's why filing 1040 has a benefit here.

The other thing I need to check on is whether H1-B holders have to file 1040 if they are in the country 183 days or more, or if they can elect to.

Reply to
removeps-groups

If a holder of a foreign account was required to file FBARs for earlier years, however, he or she should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late. No penalty will be assessed if IRS determines that the late filings were due to reasonable cause. The account holder should keep copies of their statement for his or her own record.

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Milt Baker CPA

Reply to
cpabakem01

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