Contact UsI became a US citizen this year (2015). I have accounts and CDs in Indian banks. What is the tax implication to me in US, if those accounts are closed now and the funds transferred to my a/c in US and I include them in my taxable income, for e.g. from 2016.
The total amount in question is around US$.150,000/-. I need to know if this amount is included in my total income of next year for calculation or only the interest earned on it. Does the Voluntary Disclosure Program help in any way in my case? Please give me a response with an example calculation.
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Tax Professional Answers
NEERAJ BHATIA, CPA
Mere transfer of a deposit account from overseas bank to US does not make it taxable, and only the interest earned will be taxable. However, the issue of taxabllity of such interest income/ penalty for non filing of FBAR/ Form 8938 filing, etc remains for 2015 and prior years.
The Voluntary disclosure program might help if that deposit, while in Indian banks, or income from that deposit was not reported in the US taxes returns and/ or FBAR filings during 2015 and prior years.
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410 weeks ago
The Voluntary disclosure program might help if that deposit, while in Indian banks, or income from that deposit was not reported in the US taxes returns and/ or FBAR filings during 2015 and prior years.