Forgot to file Form 8938 last year as a new resident alien - what should I do?

Don't panic! This is more common than you think for new resident aliens. The IRS understands that international tax reporting can be complex. For your 2024 return, amending to include the Form 8938 and Canadian income is the right approach. Make sure to file Form 1040-X and attach the completed Form 8938 plus any other forms needed for the foreign income. For your 2023 return, you should also file an amendment with Form 1040-X. Include a detailed letter explaining that you were a new resident alien unfamiliar with Form 8938 requirements, and that you're voluntarily correcting the oversight as soon as you discovered it. The IRS often waives penalties when taxpayers show good faith efforts to comply once they learn about requirements. While the potential $10,000 penalty exists, it's typically applied in cases of willful non-compliance, not honest mistakes - especially for new residents. Document everything carefully and keep copies of all submissions.

After reading your post, I felt compelled to share my experience with a similar situation. I actually missed filing some international forms a couple years ago and was freaking out just like you. I discovered this amazing AI service at https://taxr.ai that helped me sort through my international tax situation. I uploaded my tax documents and explained my situation, and it walked me through exactly what forms I needed and helped draft the explanation letter for reasonable cause. It even identified some foreign tax credits I'd missed! The service helped me understand which forms applied to my situation and the proper way to amend previous returns. The best part was getting custom guidance for my specific international situation rather than trying to piece together advice from different online sources that didn't exactly match my circumstances.

Just wanted to update after trying taxr.ai for my UK accounts situation. Honestly, it was incredibly helpful! The system immediately identified that I needed both FBAR and Form 8938, plus Form 1116 for foreign tax credits on my UK investments. What really impressed me was the detailed walkthrough of how to file an amendment with a reasonable cause letter. The guidance was specific to my situation as a first-time resident alien who wasn't familiar with US reporting requirements. The letter template it generated explained my situation perfectly and cited relevant IRS precedents for penalty abatement. I just finished submitting my amendments following their guidance, and it gave me so much more confidence than when I was trying to figure it all out from random forum posts. Definitely worth it for peace of mind with these complicated international tax issues!

I went through something similar last year with foreign accounts. After trying for WEEKS to get through to an IRS representative for guidance, I finally found https://claimyr.com and tried their service. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they got me connected to an actual IRS agent in about 20 minutes when I had been trying for days on my own. The agent I spoke with was actually really helpful about my missed Form 8938 situation and walked me through exactly what documentation I needed to include with my amendment to avoid penalties. Having that direct conversation with the IRS gave me confidence that I was handling the situation correctly rather than just hoping my amendment would be accepted without issues. Their advice about how to word my reasonable cause explanation probably saved me thousands in potential penalties.

I need to apologize and eat my words. After calling the IRS unsuccessfully for three days straight (disconnected every time after waiting 1+ hour), I broke down and tried Claimyr out of desperation. Within 15 minutes I was actually speaking to a real IRS representative! They confirmed they were with the IRS and everything. I explained my foreign account reporting situation similar to the original poster's, and they gave me specific guidance on amending my returns and what documentation would help support reasonable cause as a new resident. The agent explained that they see these cases often with new residents and that showing you're proactively fixing the issue once discovered is viewed favorably. That 15-minute conversation saved me days of stress and uncertainty. My amended returns are now submitted with the proper documentation thanks to their guidance. Sometimes you have to admit when you're wrong!

I'd recommend getting professional help with this. I'm an expat too and tried handling my first resident return myself - big mistake. The international reporting requirements are incredibly complex. I used a tax service that specializes in expat taxation and they caught several things I would have missed, including some credits that actually saved me money. Yes, it costs a few hundred dollars, but the peace of mind and protection from potential penalties is worth it. The key with international tax issues is documenting everything thoroughly. Whatever route you take, make sure you keep copies of EVERYTHING and send amendments via certified mail so you have proof of when you submitted them.

Everyone's talking about fixing the mistake but missing a key point - you likely won't face penalties at all if you address this properly! The IRS has specific procedures for missed international information forms. Look up the "Delinquent International Information Return Submission Procedures" on the IRS website. If you had no unreported income tax, you may qualify to file these forms with a statement explaining why they're late without penalties. Even with the small amount of unreported income, penalties are rarely imposed for non-willful violations, especially for new residents. Document your student status transition to resident alien, and demonstrate that you're taking corrective action immediately upon discovering the requirement. I've helped friends through similar situations and most were resolved without penalties when handled promptly and transparently.

I went through almost the exact same situation last year! As a new resident alien, I also missed the Form 8938 requirement while properly filing my FBARs. The good news is that the IRS really does understand that international tax compliance is complex for newcomers. Here's what worked for me: I filed amended returns (Form 1040-X) for both years, included the missing Form 8938, and wrote detailed reasonable cause letters explaining my situation as a new resident who wasn't familiar with all the reporting requirements. I emphasized that I was filing FBARs correctly, which showed good faith compliance efforts, and that I was voluntarily correcting the oversight as soon as I discovered it. The key points I included in my reasonable cause letters were: - Timeline of my transition from student to resident alien status - Documentation showing I was properly filing FBARs (demonstrating compliance intent) - Explanation that I discovered the Form 8938 requirement through my own research - Clear statement that I was voluntarily correcting the oversight immediately I never received any penalties! The IRS processed my amendments without issue. The amounts you're dealing with ($150-200 unreported income) are relatively small and clearly non-willful violations. Don't let the scary penalty amounts stress you out too much - they're designed for willful non-compliance, not honest mistakes by new residents learning the system. Document everything well and you should be fine!

I'm currently dealing with a very similar situation as someone who became a resident alien in 2023. Reading through all these responses has been incredibly helpful, especially the detailed experiences from people who actually went through this process successfully. What strikes me most is how consistent the advice is across different approaches - whether using professional services, AI tools, or handling it yourself, the key seems to be thorough documentation and demonstrating good faith compliance efforts. The fact that you were already filing FBARs correctly really does show you weren't trying to hide anything. I'm leaning toward the approach that Alejandro Castro described - filing amendments with detailed reasonable cause letters and supporting documentation. The timeline he suggested makes a lot of sense: showing when you became a resident, when you discovered the requirement, and how quickly you took action to fix it. One thing I'd add is to keep screenshots or documentation of when/how you discovered the Form 8938 requirement (like if you found it through IRS publications or tax preparation software). This can further support your reasonable cause argument by showing you were actively trying to understand your obligations. The small amounts of unreported income you mentioned ($150-200) really do suggest this was an honest oversight rather than intentional non-compliance. Combined with your prompt action to correct it, I think you have a very strong case for penalty relief.

I'm going through something very similar right now! Just became a resident alien in late 2023 and realized I missed several international reporting requirements. Reading everyone's experiences here has been incredibly reassuring. What really helped me was creating a comprehensive timeline document that shows: - When my status changed from student to resident alien - When I first learned about Form 8938 (I screenshot the IRS page where I discovered it) - How quickly I'm taking action to correct everything I'm also documenting that I was filing FBARs correctly, which shows I wasn't intentionally hiding anything - just genuinely didn't know about the additional Form 8938 requirement. The amounts involved in my case are also relatively small (under $300 in unreported foreign income), and like several people mentioned, this clearly shows it was an honest oversight rather than willful non-compliance. Planning to file amendments with detailed reasonable cause letters following the approach that worked for @Alejandro Castro. The key seems to be being completely transparent about the mistake while demonstrating good faith efforts to comply once you learn about the requirements. Thanks to everyone who shared their experiences - it's made what felt like a terrifying situation much more manageable!