Filing Taxes for past years for Foreign earners?

I moved overseas over 5 years ago. My last filing was for 2004.

I was confused about filing and thought since I didn't earn the $72k+ untaxed amount and thought I didn't have to.

My 2004 tax return didn't include the correct stocks loss for that year and kept the amount from 2003 and didn't add the losses on schedule D from the year 2004 to tax filing on 2004 return.

1st q: Can I amend that mistake since I will be carrying the loss forward from 2004 to 2005, 2006 , 2007 and so forth

2nd q: My earning didn't reach the full untaxed amount for foreign earners, would I still deduct 3000 from my stock losses. Meaning if I had $100,00 losses, will I be deducting the 3000 against my earned income even I am not paying taxes agents it.

3rd is there any penalty for not filing for past years even I don't any money

Thanks for answering

1 Answer

  • Anonymous
    1 decade ago
    Favorite Answer

    Okay, so you have now learned that you should have filed. And that the IRS can file for you if you don't.

    Get those records together.

    If you *did* file, file amended returns and include all income on it. If you are lucky, the IRS will accept the 2555 even at this late date. (If they won't, you'll have to backtrack to form 1116.)

    If you didn't file and the IRS filed for you, you don't amend, you file an original return.

    I would file the correct schedule D and cross my fingers for 2004. You may or may not be able to create a loss from 2004 that you can carry forward to 2005.

    The actual capital loss carryforward when is calculated by using a worksheet in the schedule D instructions.

    Your last questions is the kicker. The IRS doesn't have to accept a late filed 2555. See publication 54 page 20. You'll have to add some wording to the top of the tax return.

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