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Rocketman

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

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mayen

To all those of you who are US citizens/nationals, I hope by this time your Philippine banks have already contacted you about the waiver of confidentiality that you are to sign. If not yet, kindly contact your banks about it and have them explain it to you. Basically, US nationals are being asked to waive their rights to the secrecy of their deposits with Philippine banks. The first ever reporting date for the US Foreign Account Tax Compliance Act (FATCA) will be on March 31,2015, those who failed to sign or chose not to sign the forms will be reported under 'recalcitrant' accounts which is like a bright red flag waving hello to the IRS.

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Monsoon

I will take the red flag because I haven't been asked and I will not sign anything giving up my banking secrecy rights.

 

They will be surprised much to their chagrin that my bank balances history will match precisely to the FBAR that I file each year.

 

And they can categorically accept a photo of me holding up my middle finger in response to any requests for me to incriminate myself.

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Irenicus

 

 

They will be surprised much to their chagrin that my bank balances history will match precisely to the FBAR that I file each year

 

I screwed up big time.  I didn't know about FBAR until about three months ago, and I've had a 10K plus dollar account at BPI since December of 2013.

 

Gonna talk to my peeps' tax guy when I am next in the US as to what options I have.  The sanctions on not doing the FBAR by July (?) of 2014 are pretty severe.

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Monsoon

I screwed up big time. I didn't know about FBAR until about three months ago, and I've had a 10K plus dollar account at BPI since December of 2013.

 

Gonna talk to my peeps' tax guy when I am next in the US as to what options I have. The sanctions on not doing the FBAR by July (?) of 2014 are pretty severe.

I wouldn't lose too much sleep over it. They have a lot of big fish to sift through that will keep them busy for a while.

 

Plus do you really think they are going to easily match up names on accounts to you unless you are the subject of an existing investigation? I never provided a Philippine bank with my SS# have you?

 

My name isn't super common, but I am not the only American with that name.

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Irenicus

 

 

I never provided a Philippine bank with my SS# have you?

 

I'm going to have to check.  There was a paper I had to sign in December of 2013 about declaring something or another - my idiot self wasn't paying attention.  I will go to BPI and see what information they have in my folder.

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rfm010

I will take the red flag because I haven't been asked and I will not sign anything giving up my banking secrecy rights.

 

 

it may not be the irs that you have to worry about.  my understanding is that the conversation between the irs and the banks went something like this:

 

irs:  we need you to report the account values of any u.s. people that you do business with.

 

bank:  we can't do that.  we have bank secrecy laws that we are not allowed to break.

 

irs:  wtf do we care?  do it or we impose sanctions on you.

 

bank:  ok.  maybe if we can get the people to sign a waiver then we can give you the information.

 

irs:  we don't care how you do it as long as you do it otherwise, you know, sanctions.

 

bank:  ok.  screw this shit.  either our u.s. customers sign the waiver or we dump the u.s. customer.

 

it may be this last bit that is of concern to you.  don't know for sure.  surprised if your bank hasn't contacted you.  my wife's accounts are at pnb and they caught up with us yesterday about this stuff.  they seem a bit confused by the whole thing.

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Monsoon

It's not the IRS that requires or enforces the FBAR, it is the treasury department.

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battleborn

If your main residence is in the U.S. and you have $10,000 in a foreign bank then you have to worry about FATCA.

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sugbu777

More "New World Order" shyt.

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John B

   Come to Cambodia.   The banks here do not care what American government wants.   They do not report depositors to anyone and pay up to 10% a year.    You """failing coconut tree banks""  conspiracy theorists should not read this post.

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Monsoon

I'm going to have to check. There was a paper I had to sign in December of 2013 about declaring something or another - my idiot self wasn't paying attention. I will go to BPI and see what information they have in my folder.

You can file delinquent FBARs and include an explanation for not filing.

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Monsoon

If your main residence is in the U.S. and you have $10,000 in a foreign bank then you have to worry about FATCA.

FATCA thresholds are higher than $10k and do depend on where you live. They are higher if you live abroad.

 

Not all FBAR filers will do FATCA reporting and vice versa.

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lopburi3

1.  The subject at hand is FBAR reporting (not FATCA).  The requirement has nothing to do with where you live - only if you are a US Citizen and have had the equilivent of $10k in accounts outside the US at any point during the year.  Many of us are subject to this requirement some years and it is currently done at on-line web site providing the amount and account/bank information.  Has nothing to do with US Income Tax (although you should make sure you report interest earned).

 

2.  If Philippine banks use the same criteria as being used here in Thailand new accounts will require filling out a W-9 form with your SSN or ITIN to allow banks to report.  People with accounts have not been asked for such yet.

 

3.  The IRS is a bureau of Treasury Department so at some point expect computer matching will be made for all returns - but with the Government record on computer programs this may not happen for awhile.  

 

4.  For most of us adding our small interest returns will not make much difference in total tax bit.  For myself, on a decent retirement, total tax bite last year was 5.3%

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rfm010

I screwed up big time.  I didn't know about FBAR until about three months ago, and I've had a 10K plus dollar account at BPI since December of 2013.

 

Gonna talk to my peeps' tax guy when I am next in the US as to what options I have.  The sanctions on not doing the FBAR by July (?) of 2014 are pretty severe.

you are so screwed.  you are exactly the type of person they are looking for.  technically guilty and not big enough to put up any kind of legal defense.  they will take you for everything you have, everything you ever will have, everything you ever thought about having. 

 

a lot of people have been caught by surprise by the fbar and i'm sure you won't have any worries but you should start complying with the actual reporting.  how you want to deal with your bank is up to you and the bank.

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RogerDat

Greetings!

IRS WEB International Taxpayers

Delinquent FBAR Submission Procedures

Taxpayers who do not need to use either the OVDP or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report and pay additional tax, but who:

  • have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1),
  • are not under a civil examination or a criminal investigation by the IRS, and
  • have not already been contacted by the IRS about the delinquent FBARs

should file the delinquent FBARs according to the FBAR instructions. 

Follow these steps to resolve delinquent FBARS

  • Review the instructions
  • Include a statement explaining why you are filing the FBARs late
  • File all FBARs electronically at FinCEN
  • On the cover page of the electronic form, select a reason for filing late
  • If you are unable to file electronically, contact FinCEN's Regulatory Help line at 1-800-949-2732 or 1-703-905-3975 (if calling from outside the United States) to determine possible alternatives to electronic filing.

The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted.

FBARs will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.

Edited by RogerDat
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