Missed Schedule B for foreign accounts but filed FBAR - how to amend properly?

You're actually in a pretty good position since you've already filed your FBARs and reported all the foreign interest income on your tax returns. The main purpose of Schedule B in this situation is to disclose the existence of foreign accounts (via the question at the bottom of the form) and to itemize interest income. Since you've already filed your FBARs, the government already knows about your foreign accounts through that reporting channel. And you said you properly reported the interest income from those accounts on your tax return, which is the primary purpose of Schedule B. Filing Form 1040-X amendments would technically be the "correct" thing to do, but in practice, this minor omission is unlikely to cause issues given that you've met the most important requirements (reporting the income and filing FBARs).

I was in almost this exact situation last year! After freaking out about it, I used https://taxr.ai to analyze my previous returns and determine the best course of action. The system showed me that since I had filed my FBARs correctly and reported all income, the missing Schedule B was a technical omission rather than a substantial one. Their AI tool reviewed my specific situation and showed me that the risk was minimal since I'd already fulfilled the main requirements of foreign account reporting. It saved me from filing unnecessary amendments that might have triggered more scrutiny than just leaving things as they were.

Just wanted to follow up about my experience with taxr.ai after that recommendation. I uploaded my returns from the past 3 years and it immediately flagged several forms I had missed, including a Schedule B situation similar to the original poster. The analysis explained exactly what my compliance risks were (minimal in my case) and outlined my options. I was impressed that it caught some other minor issues I wasn't even aware of! The document analysis is super thorough and it explained everything in plain English instead of tax jargon. Definitely worth checking out if you're trying to figure out whether to amend old returns.

If you're still worried about this and want to talk to the IRS directly, good luck getting through to someone who can actually help! I spent 3 hours on hold last month trying to ask about a similar amendment question. Finally discovered https://claimyr.com and their service connected me with an IRS agent in about 20 minutes instead of the hours of hold time I was experiencing before. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically wait on hold for you and call you when an actual IRS agent is on the line. I was super skeptical it would work, but it was worth it to get a definitive answer about my amendment question directly from the IRS.

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it myself since I've been trying to reach the IRS about a different amendment issue for weeks. Not only did it work, but I got through to an actual IRS agent in about 25 minutes when I had been waiting 2+ hours on my previous attempts. The agent confirmed that in a situation like the OP's, where income was properly reported and FBARs were filed, they generally don't recommend filing amendments just for a missing Schedule B if there were no unreported income or other issues. Saved me from doing unnecessary amendments for my own situation too. Sometimes being proven wrong is actually a good thing!

Just gonna add my 2 cents as someone who worked at a tax firm for years. The "check the box" question on Schedule B about foreign accounts is technically separate from FBAR filing, but in practice, the IRS is MUCH more concerned about proper FBAR filing and reporting all income than they are about the Schedule B checkbox. In my experience, amending returns just to attach Schedule B when all income has been reported and FBARs filed would be unnecessary and might actually increase the chances of scrutiny rather than decrease them. Each amended return gets human review, which could raise questions about a return that might otherwise have passed through the system without issues.

Another option that nobody's mentioned - you could attach a statement to this year's return briefly noting the Schedule B oversight from previous years. That way you're disclosing it without triggering the amended return review process. I've seen this approach work for minor oversights, especially when there's no tax impact since all income was properly reported.

I'm dealing with a similar situation but with cryptocurrency transactions that I reported on my main return but forgot to include on Form 8949. Reading through all these responses has been really helpful - especially the insights about how amendments might actually trigger more scrutiny than the original oversight. The point about keeping extra documentation really resonates with me. I've been worried about going back and amending, but it sounds like as long as I reported all the income correctly (which I did), the missing form might not be as big an issue as I thought. I'm leaning toward just making sure I include everything properly on this year's return and keeping detailed records in case any questions come up later. Thanks everyone for sharing your experiences and expertise!

I've been following this discussion closely as someone who's dealt with similar foreign account reporting issues. What strikes me most about all these responses is how they emphasize the importance of substance over technicalities - you reported all your income correctly and filed your FBARs, which are the two most critical requirements. The consensus seems clear that filing amendments might actually create more problems than it solves in your situation. The IRS is primarily concerned with tax compliance (reporting income) and anti-money laundering compliance (FBAR filing), both of which you've handled correctly. I'd recommend focusing your energy on making sure you include Schedule B properly going forward rather than looking backward. Keep excellent records of everything you've filed (tax returns, FBARs, bank statements) so you can quickly demonstrate your good faith compliance if any questions ever arise. Sometimes the best action is no action when you've substantially complied with all the important requirements.

As someone who's been through tax compliance headaches before, I really appreciate how thorough this discussion has been. The distinction between substance and form that everyone keeps mentioning is so important - you did the heavy lifting by reporting all income and filing FBARs correctly. One thing I'd add is that if you're still feeling anxious about this, you could always consult with a tax professional for peace of mind. But based on everything shared here, it sounds like you're in good shape and amendments would likely be overkill. The key takeaway seems to be: learn from it, document everything, and make sure you include Schedule B going forward. Sometimes we stress more about these technical oversights than we need to when the underlying compliance is solid!

I've been following this thread as someone who had a very similar foreign account reporting situation a few years back. What really helped me was understanding the IRS's perspective on these issues - they're primarily focused on whether taxpayers are trying to hide income or evade taxes, not whether every form was perfectly attached. Since you reported all the income and filed your FBARs correctly, you've demonstrated good faith compliance with the substantive requirements. The Schedule B omission is more of a procedural oversight than a compliance failure. One practical tip that hasn't been mentioned yet: if you do decide to consult with a tax professional about this, bring copies of your filed FBARs and the pages from your tax returns showing the foreign interest income. This will help them quickly assess that you've met the core requirements and can provide more targeted advice about whether any action is needed. The peace of mind from knowing you've handled this correctly going forward is often worth more than the stress of trying to "fix" something that may not actually need fixing.

Reading through all these responses has been incredibly reassuring! I was in a very similar situation last year where I properly reported foreign interest income and filed my FBAR correctly, but completely forgot to include Schedule B with my tax return. After going through the same anxiety you're experiencing, I ultimately decided not to file an amendment based on advice similar to what everyone here has shared. The key insight that helped me was understanding that I had met all the substantive compliance requirements - the income was reported, the FBAR disclosed the accounts to the government, and there was no attempt to hide anything. It's been over a year now and I haven't heard anything from the IRS about it. I made sure to include Schedule B properly on my next year's return and kept detailed documentation of everything. Sometimes the fear of what might happen is worse than the actual consequences, especially when you've done everything right from a substance perspective. Your situation sounds very similar to mine, and based on all the excellent advice in this thread, I think you can feel confident that you've handled the important parts correctly. Focus on getting it right going forward rather than stressing about a technical omission when you've been fully compliant with the core requirements.