ponsomp

Hi --

My wife and I are dual citizens of the US and UK. We're moving back to the US and have money in UK bank accounts. I've been reading material which says the US does not like its resident citizens to have money in foreign bank accounts. I am assuming it is better to transfer these monies to a US account rather than claim the UK money with the IRS?

Can anyone advise on the best strategy with respect to IRS taxation?

Many thanks,
Todd

robin1234

Just money in a bank account? That’s really not a problem. Assuming you’ll be visiting the UK on vacation or whatever, it is quite useful (though obviously not essential) to keep a UK account.

Pulaski

The US and IRS are totally fine with you keeping your money in banks pretty much anywhere in the world (Cuba, Iran, and North Korea being among the exceptions), so long as you make the proper reports to the IRS, and pay applicable taxes on any interest. Your bigger problem may be that your British bank might want to close your accounts when you move to the US; some, but not all banks do that.

celticgrid

No problem. Just keep filling out the same paperwork you've been doing all these years, assuming that for things like FBAR the balances were reportable.

You have been filing appropriately I assume...

ponsomp

Thanks to everyone for their replies! Very helpful.

Best wishes,
Todd

Cook_County

You'd continue to report UK bank accounts and pension plans on an FBAR & Form 8938 each year. In practice the tougher issues may come after your death when a US executor tries to deal with probate issues and financial institutions in the UK.

ponsomp

Thanks, CC.