How do I report a small offshore account? 2 Answers as of April 26, 2011

I had money in offshore account in India which is joint between my mom and I. For a short time of about a month balance was $24,000 in 2008, which I gifted to my mom in her individual account after selling an apartment that I owned there.

I also got interest of about $150 on that which I never reported and, also, the account was not declared since I was not aware of the rules. The apartment was sold at almost no profit no loss, probably around $200 loss maybe which, again I did not show in my taxes. Do I need to show that as well?

I am a US citizen, which I got in 2007. What can I do? Can I report the account now and do I need to declare the $150 interest as income? And also, do I need to report apartment sale transaction which was at almost some $200 loss? Would there be any penalties?

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Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
That's a few questions. You can file a corrected return and show the income and expense. The 1040 has a line(s) where you indicate if you have an offshore account. Penalties if any would be small.
Answer Applies to: California
Replied: 4/26/2011
Givner & Kaye
Givner & Kaye | Bruce Givner
You must consult with an attorney who has experience in handling late FBAR (Foreign Bank Account Report) filings. This is a highly specialized area, with a great deal of potential risk.
Answer Applies to: California
Replied: 11/15/2010
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