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Rocketman

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

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stevehann

Oops, FTWA = FACTA

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That Masked Man

Oops, FTWA = FACTA

That's OK. As draconian and arbitrary as these new laws are, they seem more like a fatwa to me too.

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Headshot

It would be pretty much impossible to buy or sell real estate (including a condo) in the Philippines without going over the $10,000 limit. Real estate payments are done here using managers checks, which means you need to transfer the money into your Philippine account and then have a managers check drawn up for the payment. You have to remember that even if your account is usually less than $2,000, you are still required to submit the FBAR form even if it was only over the $10,000 limit for a few days during the year.

Edited by Headshot

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SkyMan

 

 

Real estate payments are done here using managers checks, which means you need to transfer the money into your Philippine account and then have a managers check drawn up for the payment.
You can buy the Manager's check with cash.

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cebubird

Not a lawyer or tax expert, but seems the 'operative' word in both these laws is TAXPAYER.

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lopburi3

Actually it is not about being a taxpayer - many citizens are not taxpayers - it is about having your name on accounts or having controls over accounts outside the US and total value at any time being 10k or more for the FBAR reporting.  This information can then be used to examine tax records if it is so desired.  But the main purpose is to provide a means to go after those who do not do the FBAR reporting and is the reason for the extreme penalties for not doing.  Up to now it has not often been used except as a gotcha for organized crime prosecution.  But now, with the ability to easily check, it would be my advise to make sure you do the reporting and that your tax payments reflect any interest type foreign account income if that was not the case previously.

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rfm010

so i'm online trying to do my fubar fbar right now.  it seems all they want are:  name and taxpayer number (ssn),  maximum account(s) value for the year, type of account (checking, saving, and a dollar account in pnb for me), account number, name/address of financial institution.

 

they want the same info on my wife as it is a joint account, even though she is not a u.s. citizen nor resident.  no place to indicate that she is neither except perhaps for the taxpayer id number, which has a "foreign" option under tin type. 

 

questions for anyone who has already done this:

on the home (1st) page of the nffbar pdf there is a section for explaining why you are filing late (if you are filing late).  one of the reasons to pick from is "account statement not received in time".

so, is there a requirement to submit an actual account statement with the fbar? 

 

on the page for listing financial account and value there is room for one account.  i have (jointly with wife) money in savings, checking, and a dollar account.  do i have to file individual reports for each of these?  or is there a way to combine them in one filing?

 

i don't see anything in the directions about such but that may be because most of the time the pages (particularly the pdf pages) won't load.  there is supposed to be a pdf for "line item instructions for completing the fbar" and another for frequently asked questions but they won't load and i can't save them to read later.  grrr. 

i notice one of the reasons NOT given for being late is that their e-filing system seems a bit screwed up.  having never filed before maybe i had best not use that as a reason...

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Headshot

You can buy the Manager's check with cash.

 

Well, I suppose that you could have your money sent by WU or another broker, avoid having it put into your account, and then purchase a managers check, but the transfer would cost you more than an electronic transfer between banks and it would add complication and risk (carrying cash around). I am assuming that most Americans living here have their money in a US bank (or investments), and not stuffed under a mattress in the Philippines.

 

There isn't any penalty that I can see for moving money through a Philippine bank for construction, and reporting it on an FBAR. There is only a problem if you haven't paid taxes on that money before it was transferred or if it stays in your Philippine bank account long enough to earn interest (and you don't declare it on your income taxes). There are no taxes on money just because it passes through a foreign account.

 

The one caveat on this is that I would suggest on this is that you save all managers check receipts and receipts from contractors, for major materiel purchases, or for anything else having to do with the purchase or sale of real estate. Keep good records. That way, you can show where the money went or came from (so the IRS doesn't think it was just laundered through a foreign bank to avoid taxes).

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Headshot

so i'm online trying to do my fubar fbar right now.  it seems all they want are:  name and taxpayer number (ssn),  maximum account(s) value for the year, type of account (checking, saving, and a dollar account in pnb for me), account number, name/address of financial institution.

 

they want the same info on my wife as it is a joint account, even though she is not a u.s. citizen nor resident.  no place to indicate that she is neither except perhaps for the taxpayer id number, which has a "foreign" option under tin type. 

 

questions for anyone who has already done this:

on the home (1st) page of the nffbar pdf there is a section for explaining why you are filing late (if you are filing late).  one of the reasons to pick from is "account statement not received in time".

so, is there a requirement to submit an actual account statement with the fbar? 

 

on the page for listing financial account and value there is room for one account.  i have (jointly with wife) money in savings, checking, and a dollar account.  do i have to file individual reports for each of these?  or is there a way to combine them in one filing?

 

i don't see anything in the directions about such but that may be because most of the time the pages (particularly the pdf pages) won't load.  there is supposed to be a pdf for "line item instructions for completing the fbar" and another for frequently asked questions but they won't load and i can't save them to read later.  grrr. 

i notice one of the reasons NOT given for being late is that their e-filing system seems a bit screwed up.  having never filed before maybe i had best not use that as a reason...

 

Well, first of all, you are NOT submitting late. The deadline for filing for 2013 is June 30, 2014. Therefore, don't worry about the requirements on filing late. There are no such requirements if you file on-time, which you are.

Edited by Headshot

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lopburi3

 

 

questions for anyone who has already done this: on the home (1st) page of the nffbar pdf there is a section for explaining why you are filing late (if you are filing late).  one of the reasons to pick from is "account statement not received in time". so, is there a requirement to submit an actual account statement with the fbar?    on the page for listing financial account and value there is room for one account.  i have (jointly with wife) money in savings, checking, and a dollar account.  do i have to file individual reports for each of these?  or is there a way to combine them in one filing?

 

As said you are not late - but no you do not send any account statements - it is just you might not know your highest balance until received.

 

You fill out one report - there are spaces for more than one account (or should be - did mine in January and only have one account - but you just added extra pages to the old print out form, but only one header needed).

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nmh

If you have a peso account you need to use the last day of the year peso-dollar exchange rate. Last year it was 44.38.

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rfm010

Well, first of all, you are NOT submitting late. ..

 

 

As said you are not late - but no you do not send any account statements - it is just you might not know your highest balance until received.

 

You fill out one report - there are spaces for more than one account (or should be - did mine in January and only have one account - but you just added extra pages to the old print out form, but only one header needed).

 

 

i found it.  not too obvious, probably mentioned in one of those pdfs that won't load:   on the form the section heading in blue "Information on financial accounts"  has plus and minus symbols on the same line.  click on the + and you can add more accounts. 

 

yeah, i know i'm  not late it's just that when i saw that as what must be one of the more common reasons for being late it made me wonder if the physical form or an electronic copy was needed. 

 

thanks for the replies.

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hilyfe

Aww come on guys just name it to your pinay and hope she wont run away with it :D

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Jawny

If you have a peso account you need to use the last day of the year peso-dollar exchange rate. Last year it was 44.38.

Not sure why this is an issue. Foreign currency accounts are not part of this reporting process. More specifically, peso accounts in the Philippines are not to be included in the amounts for the U.S. dollar accounts. Perhaps there is a need to know "income" from a peso account, but that is for tax purposes, not for foreign currency reporting. Apples and oranges.

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