Jump to content
Sign in to follow this  
Rocketman

U.S. Citizens - If you have $10K+ in a foreign bank, read this

Recommended Posts

Topper

i parked twenty-eight cents in a USD account with the Coconut Planter's bank

 

the interest ain't much but the manager has superb tits

 

and let's me stare down her blouse for free.

 

and has someone serve me free hot coffee.

I like the way you think BossHog. You have a good grasp (or should I say eye) on those little important things in life that warm a man's heart.

  • Like 1

Share this post


Link to post
Share on other sites
Daddy

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR -- This the law that requires the current reporting.

 

This is the new law in addition to the old law that goes into effect July 2014, the date of implementation may have been changed.

 

http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

 

July 1, 2014 this law will be fully implemented. 

 

My understanding is that you will have to report and and all foreign accounts no matter what the amount.

 

Some of the smaller foreign banks will not be able to comply with the reporting to the IRS and will therefore drop foreigners bank accounts. Some banks have already started dropping US citizens as clients.

Share this post


Link to post
Share on other sites
agent17

The bank secrecy law in the Philippines is still in effect.  The banks can't disclose to anyone your bank information without your written consent.

 

If they haven't already, your local bank will send you a mail with a form for you to sign.  It's a waiver to your bank secrecy.  If you sign it, they will go ahead and report your bank account to the IRS.  If you don't sign it, they will close your bank account.

 

As far as I understand, they won't report to the IRS without your signed consent.

 

Correct me if I'm wrong.

Share this post


Link to post
Share on other sites
MarinePride

FBAR's are due by June 30 for calendar year 2013.  I have accounts with BDO, Union Bank, ChinaBank, and BPI, all are dollar accounts and I havn't heard anything from them regarding a signature to waive my privacy rights.  Granted I don't go to the bank, but a few times a year here, so maybe that's why.

 

I have a hard time believing any bank here is going to comply with this FACTA law when they don't even send out monthly statements to their clients.

Share this post


Link to post
Share on other sites
battleborn

FATCA requires all foreign banks must  comply and report American bank accounts with over $10,000 or face penalties and/or fines.  If you have $50,000 in a bank or assets overseas , and reside in the US you need to understand FATCA.  If you reside overseas you can have $200,000 in assets before penalties but read up on FATCA.

Share this post


Link to post
Share on other sites
Monsoon

 

 

The bank secrecy law in the Philippines is still in effect.  The banks can't disclose to anyone your bank information without your written consent.

 

That law was amended to facilitate compliance with FATCA and other anti-money laundering pressures and subsequently avoid blacklisting by the IMF. It now allows cooperation with foreign tax authorities. 

  • Like 1

Share this post


Link to post
Share on other sites
Monsoon
If they haven't already, your local bank will send you a mail with a form for you to sign.  It's a waiver to your bank secrecy.  If you sign it, they will go ahead and report your bank account to the IRS.  If you don't sign it, they will close your bank account.

 

Hmm. Not sure about that. I own or am a signatory on about a dozen accounts with foreign banks. One of my banks I am in contact with several times a week. And I just opened a new account at a major Philippine bank 2 weeks ago. The initial deposit was well over $10,000. Nothing related to FBAR was in the paperwork. 

Edited by Monsoon
  • Like 1

Share this post


Link to post
Share on other sites
tim

There is a notice posted in BPI Mango branch of a new Bank form that will be required to sign by foreign investors from the USA starting 1 July 2014.. I am assuming that this will allow  BPI to report to the USA IRS your investments and bank accounts information.  I opened a peso account and will never have over 10,000 USD in it. I use it only to store and budget my monies while here...  

Share this post


Link to post
Share on other sites
contraman

Hmm. Not sure about that. I own or am a signatory on about a dozen accounts with foreign banks. One of my banks I am in contact with several times a week. And I just opened a new account at a major Philippine bank 2 weeks ago. The initial deposit was well over $10,000. Nothing related to FBAR was in the paperwork.

 

I can not help thinking that it will be there somewhere.

Like buried in the fine print.

The devil is always in the detail :)

Share this post


Link to post
Share on other sites
lopburi3

Remember there are two different items being discussed here.

 

FBAR has been a requirement for years for anyone having a total of more than 10k USD in foreign accounts at any time during the previous calendar year.  You do this now on-line but basically same listing of accounts and highest amount converted to USD.  Many will have to do this report as the foreign bank account reporting will start to get into computers and those not doing will become noticed over time.

 

The other is major overseas holdings which most retired and many working will not have to worry about as the amount/incomes are higher than they have.

Share this post


Link to post
Share on other sites
nmh

I know that BPI is requiring U.S. Citizens to give them your social security number. For Filipino- Americans if they don't use any American identification concerning their bank accounts then they don't have to worry. All the Philippine banks will have to or eventually comply with FACTA otherwise the U.S. Government will withhold 30% of their investment sales in the U.S. What is more important the few American clients they have or their multi-million dollar investments in the U.S.A. The U.S. will also ask for up to 8 years of Philippine bank records concerning their American clients.

Share this post


Link to post
Share on other sites
big RB

i hadn't known about this requirement until i saw it on linc.  i've never made enough income to need to file taxes so i've never really given the topic any thought. 

 

in my cursory review of who must file it looks like i must file because our bank account is joint.  the money in our accounts is from my wife's income and she is not a u.s. citizen nor resident, but since my name is on the account it looks like i must file.  hope i don't get nailed for back penalties.  does anyone know if the irs is forgiving in such cases?  we're not talking a whole lot of money.

 

if i knew we were going to stay here i wouldn't bother but if the kid decides to live in the u.s. after school then we would likely move also and i don't want things like this messing up a visa for the wife.

Share this post


Link to post
Share on other sites
agent17

I know that BPI is requiring U.S. Citizens to give them your social security number. For Filipino- Americans if they don't use any American identification concerning their bank accounts then they don't have to worry. All the Philippine banks will have to or eventually comply with FACTA otherwise the U.S. Government will withhold 30% of their investment sales in the U.S. What is more important the few American clients they have or their multi-million dollar investments in the U.S.A. The U.S. will also ask for up to 8 years of Philippine bank records concerning their American clients.

I wonder how will the US gov know a certain bank is disclosing all their American clients and not leave a few out of their report?  I doubt the big banks here will allow the US gov total access to their records.  Let's say Bobby the American has an account with BPI and he's a big time client.  BPI doesn't want to lose him as a customer.  If BPI didn't report him to the IRS then how will the US gov know about Bobby?  From what I've read based on newspaper articles, the BSP (Philippines Central Bank) passed the responsibility to individual banks.  It's up to the branch manager to snitch out their clients or not.

Edited by agent17

Share this post


Link to post
Share on other sites
mikewright

 

 

I wonder how will the US gov know a certain bank is disclosing all their American clients and not leave a few out of their report? I doubt the big banks here will allow the US gov total access to their records.

 

A Swiss bank, Credit Suisse, was fined $2.6 billion (not million) last month for helping Americans avoid tax.

 

http://rt.com/business/160064-credit-suisse-guilty-tax-evasion/

 

Most foreign banks which have connections with the US will be reporting details to the US. Just Google "FACTA" for details.

 

“FATCA will also require foreign financial institutions (“FFIs”) to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.”

 

Under FACTA, if the IRS catches a single tax cheat at a bank, it can strip that bank of 30% of its earnings from American investments. Not just the tax cheat’s investments–all American investments, including multi-billion dollar corporate accounts that have been in place for generations.

 

http://watchdogwire.com/blog/2012/10/23/facta-new-federal-law-causes-swiss-banks-to-reject-american-investors/

 

 After the Credit Suisse fine, I somehow don't think many banks will try to fudge the figures about their US clients.

Share this post


Link to post
Share on other sites
stevehann

This is probably lawyer talk, but FBAR and FTWA extend to American Persons, which means Green Card Holders and others. Anyone who has ever lived in the USA, has parents who are American Citizens, or has any other connection with the USA, should check into these laws. Just because you think they do not apply to you does not mean that they do not.

  • Like 1

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.
Sign in to follow this  

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..