- Thread starter johne
- Start date
The one line on US tax return" Do you maintain a foreign Bank Account?"
You are better off disclosing it. I disclose mine because it generates very little interest and I can document where the money came from so why try to conceal it? Foreign banks will start cooperating with the US if they haven’t already as far as disclosing accounts and the interest earned. At this time they are required to disclose the account if it is over $50,000 US.
FATCA requires any non-U.S. bank to report accounts held by American citizens worth over $50,000 or else be subject to 30% withholding penalties and possible exclusion from U.S. markets.3 By mid-2015, more than 100,000 foreign entities had agreed to share financial information with the IRS. Even Russia and China agreed to the FATCA. The only major global economy to fight the Feds is Canada; however, it was private citizens, not the Canadian government, who filed suit to block FATCA under the International Governmental Agreement clause, making it illegal to turn over private bank account information.
The Foreign Account Tax Compliance Act
Congress passed the Foreign Account Tax Compliance Act (FATCA) in 2010 without much fanfare.3 One reason the act was so quiet was its four-year-long ramp up: FATCA did not take effect until 2014. Never before had a single national government attempted, and so far succeeded in, forcing compliance standards on banks across the world.FATCA requires any non-U.S. bank to report accounts held by American citizens worth over $50,000 or else be subject to 30% withholding penalties and possible exclusion from U.S. markets.3 By mid-2015, more than 100,000 foreign entities had agreed to share financial information with the IRS. Even Russia and China agreed to the FATCA. The only major global economy to fight the Feds is Canada; however, it was private citizens, not the Canadian government, who filed suit to block FATCA under the International Governmental Agreement clause, making it illegal to turn over private bank account information.
We declare it every year. We keep the balance under 10K to make the reporting easier, but last year we had an inheritance deposited and it meant more paperwork.
As my accountant said...absolutely no problem if you could identify where the money came from and it belongs to you.AND, that is only necessary IF you had an audit. Otherwise, it's a ONE line statement...making you legal all the way.
This thread might trigger comments regarding "big brother looking", "I live in DR" etc., etc. Remember if born there (and have not renounced your citizenship) the long arm of the USA will always be able to reach you. Even when you are buried in the DR. That's just the way it is as you are "Property of the USA". lol.
One of the reasons many don’t consider it so beneficial anymore becoming a US citizen. I know Dominicans and Danes who kind of regret it.
I fail to see "one of the reasons". As long as you can identify the money is rightfully yours what is "the reason"? Answer: One who wants to wash. Even that can work if you do it in small amounts.
I'm not trying to compare countries as this will delete the thread. These are facts and regulations that are in place. The question was...Do you divulge? Three members (included me on next return) indicated a yes.
Not a complicated posting,. (Well, on DR1 maybe.lol)
Not a complicated posting,. (Well, on DR1 maybe.lol)
I am on the board of directors for a bank. All transactions above $10,000 need to be reported. Even when someone frequently deposits smaller amounts to avoid the $10,000 threshold, we are required to file a Suspicious Activity Report. Depositing smaller amounts does not go unnoticed.
Of course. But if the money is "yours " ie earned in the US, paid US taxes and deposited in DR... I suspect this is no problem and fill the FATCA box.
I understand there are DR related posts and now also DR-US related posts. I mean if you live in the DR most of the year as a legal resident why should you then report a bank account to the tax authorities in your country of origin where you don’t live anymore. Just a hassle. That’s all.
As am I. So we have something in common. Director and Chairman of its Credit Committee for 25 years now.
Adding to your information, there is also an exception to filing a SAR (suspicious activity report). Under KYC (Know Your Customer) regulations, amounts, even frequent amounts just under the threshold need not be reported, if you know your customer. There are still many cash businesses that frequently deposit thousands of dollars near the $10,000 threshold almost daily.
However, once the FATCA reporting regulations went into effect, I closed my DR accounts.
Respectfully,
Playacaribe2
FACTA and FBAR. FACTA: Banks required to report holdings of US persons in their accounts of US50k or more at that institution. FBAR is the US person's requirement to report external holdings over 10k, collectively. This includes accounts where one may have signatory authority.
There is no problem if you have nothing to hide. Depositing money is not a crime. I always tell people, if you have nothing to hide, don't act like you do.
The reporting to the IRS for US taxes is not a hassle, at least if you did not have over 10k in foreign accounts any time during the year. (and yes, the 10k is in total, not per account). I've never gone over the 10k threshold, so I can't speak to the hassle level if that were the case
Luckily (?) for my accounts, the meager interest received would never draw attention
