indian accounts

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arj_2000
Posts: 55
Joined: Sat Mar 22, 2008 7:55 am

indian accounts

Post by arj_2000 »

Hi All, I used to have some FD accounts in India (~ $150,000 in total) from 2003-2010. I primarily wanted to give money to my parents, so sent the amount to India. I have closed most of the accounts in 2009 and 1-2 in April 2011. I have givem all the money to my mother so that they can use it for medical etc. purposes.

My tax prepare never told me to put the interest on those accounts in US IT return neither he told me to file a FBAR. He mentioned that as I opened those accounts when I was on H1B visa, I don't have to.

Question - Should I amend my IT returns here in US for the last 8 years and utilize OVID which is valid till Aug 2011.

I am confused as I have already closed the accounts. I understand I made a huge mistake but not sure how to deal with it now.

Pls advise.
Arjun
zen
Posts: 247
Joined: Sun Apr 06, 2008 11:46 am

indian accounts

Post by zen »

Hi Arjun,
You may want to look at the thread on OVDI

http://www.r2iclubforums.com/forums/showthread.php/23763-Offshore-Voluntary-Disclosure-Initiative-or-Tax-Amends

I would let the tax experts analyze your situation and comment. Though I'm in a similar situation, I'm not looking at huge amount of foreign interest income. So I'm getting mixed responses.
anuj106
Posts: 41
Joined: Tue Oct 18, 2011 9:01 pm

indian accounts

Post by anuj106 »

Hi Arjun & Zen,

In my view if your purpose was to help your parents then ideally funds should have been transferred to your parents accounts on which they could have earned interest and also paid Indian Taxes. I am not sure whether you had filed Indian income Tax returns or not for the same.

It would also have saved you from botheration from US tax perspective.

:))Anuj:))
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