How do you report customs form FINCEN 105 on tax return?

Thanks for clarifying this! I have a similar situation but I converted my savings to Bitcoin before traveling and then converted back to dollars after arriving. Does that change anything with FINCEN 105 reporting? Also, does bringing money into the US this way trigger any kind of suspicious activity flags?

Converting to cryptocurrency and back doesn't change your FINCEN 105 obligations. If you physically transported crypto (like on a hardware wallet) worth over $10,000 across the border, that should technically be reported on the FINCEN 105 when entering. If you transferred it digitally, that's different from physical transportation and wouldn't require the FINCEN 105. As for suspicious activity flags, properly declaring large sums on the FINCEN 105 is exactly how you avoid triggering unnecessary suspicion. The form itself doesn't automatically trigger audits or investigations - it's failing to file when required that causes problems. Just keep good records of the source of funds in case there are any questions.

How exactly does this tool work? I'm moving back from Japan next month and will have a similar situation. Does it just give general advice or does it actually help with filling out specific forms?

Sounds interesting but I'm skeptical about using AI for tax advice. How accurate is it for complex international situations? I've had tax professionals give me conflicting advice about foreign income reporting before.

The tool works by analyzing your specific situation through a series of questions about your international finances. It's not just general advice - it identifies exactly which forms you need based on your circumstances and explains why. For your Japan situation, it would help clarify FBAR requirements, foreign income reporting, and how to handle any foreign tax credits. Regarding accuracy for complex international situations, I was skeptical too initially. What convinced me was that it referenced specific IRS publications and tax code sections that I could verify independently. It's backed by tax professionals who specialize in international taxation, not just AI making guesses. I've used the guidance for two tax years now without issues, and it caught a foreign housing deduction my previous accountant missed.

How does this service actually work? Seems suspicious that they could get through when no one else can. Are they just using some trick to jump the queue that we could do ourselves?

This has to be a scam. I've been dealing with international tax issues for years and there's no magic way to reach the IRS faster than anyone else. They probably just connect you to some fake "agent" who gives generic advice.

It's not a trick you could easily do yourself - they use an automated system that continually calls and navigates the IRS phone tree until it gets through, then connects you when it reaches an agent. It's like having a robot assistant that does the holding for you and calls you when someone actually picks up. They're definitely connecting to the real IRS. I confirmed this because the agent I spoke with looked up my specific tax records and previous filings, which only a legitimate IRS employee would have access to. I was skeptical too, but when the agent referenced specific details about my previous year's return that no one else would know, it was clear this was the actual IRS. Not a scam - just technology solving the hold time problem.

That's so confusing! What happens if you miss filing one of these? Are the penalties really bad? I've had money in an account back in my home country for years and never knew about any of this.

The penalties can indeed be severe if you willfully fail to file, especially for the FBAR. Non-willful penalties start at $10,000 per violation, and willful violations can be the greater of $100,000 or 50% of the account balance per violation. That said, the IRS has streamlined compliance procedures for people who honestly didn't know about the requirements. If you've just realized you needed to file these forms, don't panic. Look into the IRS Streamlined Filing Compliance Procedures, which can help you get compliant with reduced or no penalties. Many expatriates and immigrants weren't aware of these requirements, and the IRS has programs specifically designed to help people catch up without crushing penalties. The key is to address it proactively rather than waiting for the IRS to find the issue.

TurboTax Premier handles foreign tax credits and income, but you can't actually file the FBAR (FinCEN 114) through TurboTax at all. You have to file that separately on the FinCEN BSA e-filing system. And the FINCEN 105 isn't a tax form, so it doesn't appear in TurboTax at all. It's confusing but that's how it works.

This is really helpful advice about keeping a copy of the FINCEN 105! I'm in a similar situation - just moved back from Germany with about $18K in savings. I did file the form at customs but didn't think to keep documentation. Is there a way to get a copy after the fact, or should I just make a note in my records about when and where I filed it? Also, you mentioned foreign tax credits - I paid quite a bit in German taxes while abroad. Do those credits apply even to income I earned years ago, or only for the current tax year?

Unfortunately, there's no easy way to get a copy of your FINCEN 105 after filing it at customs - CBP doesn't typically provide copies to travelers. But you can document what you remember: the date you entered, the port of entry, approximate amount declared, and that you filed the form. Keep this with your tax records along with any travel documents from that trip. For foreign tax credits, they generally only apply to the tax year when you actually paid the foreign taxes, not retroactively. So if you paid German taxes in 2023, you'd claim those credits on your 2023 US return (if you haven't filed it yet). However, you can carry forward unused foreign tax credits for up to 10 years and carry them back 1 year, which gives you some flexibility. If you missed claiming credits in previous years, you might want to consider amending those returns - the foreign tax credit can result in significant refunds that are worth pursuing.

Great practical advice about depositing the funds gradually! I hadn't thought about the bank reporting requirements on the receiving end. Quick question though - when you say "spreading it out can avoid unnecessary paperwork," are you suggesting this to avoid triggering Currency Transaction Reports (CTRs), or is there another reason? I want to make sure I'm not inadvertently doing anything that could be seen as structuring, which I know can be problematic. Also, did you have any issues with your Canadian bank accounts after moving back to the US? I'm wondering if I should close my foreign accounts or keep them open for future travel.