Report your DR bank account (US citizens)

franco1111

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May 29, 2013
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It looks like if you have an account in the RD that has more than $10,000 USD in it, you have to report it to the US Department of Treasury.  There are exceptions.  Who knew...  (Please correct me if I misunderstand this requirement.)


Report of Foreign Bank and Financial Accounts (FBAR)

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a Financial Crimes Enforcement Network (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR). See the ‘Who Must File an FBAR’ section below for additional criteria.


Who Must File an FBAR

United States persons are required to file an FBAR if:

1.  the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and

2.   the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.


Exceptions to the Reporting Requirement

Exceptions to the FBAR reporting requirements can be found in the FBAR instructions. There are filing exceptions for the following United States persons or foreign financial accounts:

Certain foreign financial accounts jointly owned by spouses
United States persons included in a consolidated FBAR
Correspondent/Nostro accounts
Foreign financial accounts owned by a governmental entity
Foreign financial accounts owned by an international financial institution
Owners and beneficiaries of U.S. IRAs
Participants in and beneficiaries of tax-qualified retirement plans
Certain individuals with signature authority over, but no financial interest in, a foreign financial account
Trust beneficiaries (but only if a U.S. person reports the account on an FBAR filed on behalf of the trust)
Foreign financial accounts maintained on a United States military banking facility.
Review the FBAR instructions for more information on the reporting requirement and on the exceptions to the reporting requirement.

https://www.irs.gov/businesses/smal...t-of-foreign-bank-and-financial-accounts-fbar
 
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cavok

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True. Very onerous penalties for not reporting the account(s). Even worse penalties for not reporting any interest earned - see IRS site. Foreign banks are now reporting interest earned directly to IRS. See FACTA.
 

AlterEgo

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Jan 9, 2009
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This is not new. We've been reporting our DR accounts for many years. They have my bank name, account number, balance at end of each year, and we pay tax on whatever interest we earn.
 
Sep 4, 2012
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Fake in the sense of "It looks like if you have an account in the RD that has more than $10,000 USD in it" the fact is that foreign accounts must be reported to the uncle (regardless of amounts) and local banks feel the burden placed onto them by the USG.
 

franco1111

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Fake in the sense of "It looks like if you have an account in the RD that has more than $10,000 USD in it" the fact is that foreign accounts must be reported to the uncle (regardless of amounts) and local banks feel the burden placed onto them by the USG.

I did not say it is a new requirement.  Nor did I report it as news.  In any case, it says:

"United States persons are required to file an FBAR if:

2.   the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported."

$10,000.  Not "regardless of amounts" as you say.  My accountant tells me if your accounts do not exceed $10,000 in aggregate during the year, you do not have to report.  Maybe you know better...
 
Sep 4, 2012
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It looks like if you have an account in the RD that has more than $10,000 USD in it, you have to report it to the US Department of Treasury.  There are exceptions.  Who knew...  (Please correct me if I misunderstand this requirement.)
Correction (you asked for it?): Accounts must be reported to the USG regardless of amount. Its a fact now days (it wasn't years back) that local banks make you sign IRS and reporting forms in order and prior to open an account (local banks are mandated to do so by DR government agreements with USG), even if you happened to have an account opened years back, local banks would chase you down to have you come in and sign the forms.

The 10,000 amount for any transaction is correct for a FBAR Report however.
 

franco1111

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May 29, 2013
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Correction (you asked for it?): Accounts must be reported to the USG regardless of amount. Its a fact now days (it wasn't years back) that local banks make you sign IRS and reporting forms in order and prior to open an account (local banks are mandated to do so by DR government agreements with USG), even if you happened to have an account opened years back, local banks would chase you down to have you come in and sign the forms.

The 10,000 amount for any transaction is correct for a FBAR Report however.

I did ask for it - corrections that is.  I am trying to comply with the law.  I am doing my taxes and have run into a couple of twists, including this one.  I don't mind sharing that information (well, really I do) if required.  I am sure they have it already anyway, especially given the requirement that DR banks report the info to the US.

They are really hard on transfers over $10,000.  I have already seen that.  To the point of being crazy, of course :  )
 
Sep 4, 2012
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I did ask for it - corrections that is.  I am trying to comply with the law.  I am doing my taxes and have run into a couple of twists, including this one.  I don't mind sharing that information (well, really I do) if required.  I am sure they have it already anyway, especially given the requirement that DR banks report the info to the US.

They are really hard on transfers over $10,000.  I have already seen that.  To the point of being crazy, of course :  )

Indeed a big PITA for certain. I had my shares of headaches until I got to be "known" by my bankers doing international transfers in the past. Once the relationship is established is easier from there, until then, they do freaked out and check for everything and to be fair to them, they have a big burden with regards to money coming in or leaving the DR due to the drugs and money laundering.
 

cavok

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Jun 16, 2014
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It looks like if you have an account in the RD that has more than $10,000 USD in it, you have to report it to the US Department of Treasury.  There are exceptions.  Who knew...  (Please correct me if I misunderstand this requirement.)


Report of Foreign Bank and Financial Accounts (FBAR)

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a Financial Crimes Enforcement Network (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR). See the ‘Who Must File an FBAR’ section below for additional criteria.


Who Must File an FBAR

United States persons are required to file an FBAR if:

1.  the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and

2.   the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.


Exceptions to the Reporting Requirement

Exceptions to the FBAR reporting requirements can be found in the FBAR instructions. There are filing exceptions for the following United States persons or foreign financial accounts:

Certain foreign financial accounts jointly owned by spouses
United States persons included in a consolidated FBAR
Correspondent/Nostro accounts
Foreign financial accounts owned by a governmental entity
Foreign financial accounts owned by an international financial institution
Owners and beneficiaries of U.S. IRAs
Participants in and beneficiaries of tax-qualified retirement plans
Certain individuals with signature authority over, but no financial interest in, a foreign financial account
Trust beneficiaries (but only if a U.S. person reports the account on an FBAR filed on behalf of the trust)
Foreign financial accounts maintained on a United States military banking facility.
Review the FBAR instructions for more information on the reporting requirement and on the exceptions to the reporting requirement.

https://www.irs.gov/businesses/smal...t-of-foreign-bank-and-financial-accounts-fbar

If you have foreign accounts with an aggregate value of less than $10,000, you still have to check the box 7A, Part III, Form B. That's it - nothing more.

If you have foreign accounts that have had an aggregate value at any time during the year of more than $10,000, you also have to fill out FinCEN Form 114. See Box 7a and 7b in Part III, Form B. Read the IRS instructions carefully.
 

franco1111

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May 29, 2013
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If you have foreign accounts with an aggregate value of less than $10,000, you still have to check the box 7A, Part III, Form B. That's it - nothing more.

If you have foreign accounts that have had an aggregate value at any time during the year of more than $10,000, you also have to fill out FinCEN Form 114. See Box 7a and 7b in Part III. Read the IRS instructions carefully.

Got it.  As you say, there is a penalty if you don't comply.

I did the post because I would guess there are people who don't know about the requirement.

And, others here have insight and experience.  Thanks.
 

franco1111

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May 29, 2013
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Indeed a big PITA for certain. I had my shares of headaches until I got to be "known" by my bankers doing international transfers in the past. Once the relationship is established is easier from there, until then, they do freaked out and check for everything and to be fair to them, they have a big burden with regards to money coming in or leaving the DR due to the drugs and money laundering.

True, a relationship with someone at the bank is important.  They can either help you or sink you.  I changed banks and had to start over.
 

cavok

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Jun 16, 2014
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Got it.  As you say, there is a penalty if you don't comply.

I did the post because I would guess there are people who don't know about the requirement.

And, others here have insight and experience.  Thanks.

There are a lot of people that aren't aware of these requirements and there are a lot of people that could be in big trouble in the future. If your bank accounts have been under $10K, the fact that you didn't disclose is not such a big deal.

If they were over $10K and report now, you are doing what is called a "quiet disclosure". This is not a "get out of jail free" card by any means. You could in fact open yourself up to big problems if the IRS looks back and sees you haven't reported in the past. Talk with your accountant or tax attorney before doing anything.
 
Jan 9, 2004
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True. Very onerous penalties for not reporting the account(s). Even worse penalties for not reporting any interest earned - see IRS site. Foreign banks are now reporting interest earned directly to IRS. See FACTA.



You are correct. But it's FATCA, not FACTA, that requires foreign banks to report interest earned on accounts in their jurisdiction.


Respectfully,
Playacaribe2
 

cavok

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You are correct. But it's FATCA, not FACTA, that requires foreign banks to report interest earned on accounts in their jurisdiction.


Respectfully,
Playacaribe2

That's right - typo. And that's a separate issue from the requirement to report foreign accounts on your tax return and to file a FinCEN Form 114 when required.

The banks are reporting to the IRS the interest you earned - so you better have reported that you have a foreign account and/or filed the FinCEN Form 114 if required.
 

NALs

Economist by Profession
Jan 20, 2003
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Do expats from other countries need to report their money to their home governments?

It seems the US government is one big pain in the you know what! I can't rationalize why the US government wants to control its citizens beyond its own borders. Ridiculous, that's the only rationalization.
 

SKY

Gold
Apr 11, 2004
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Do expats from other countries need to report their money to their home governments?

It seems the US government is one big pain in the you know what! I can't rationalize why the US government wants to control its citizens beyond its own borders. Ridiculous, that's the only rationalization.



For those who have not got it yet. The US is one big Police State. And has been for many years.
 
Sep 4, 2012
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Do expats from other countries need to report their money to their home governments?

It seems the US government is one big pain in the you know what! I can't rationalize why the US government wants to control its citizens beyond its own borders. Ridiculous, that's the only rationalization.
One word, greed, that's all.
 

william webster

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Jan 16, 2009
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NALS & Wishing Well

The US imposes heavy burdens on financial institutions.
My asset management company, a large concern, will not accept US residents as clients.... never.

The reporting load is too onerous