Quiet disclosure of FBAR
#61
Re: Quiet disclosure of FBAR
Woow! Have read about FATCA! I personally do not get it why my money (saving) in my home country is US business? I understand offshore businesses, not taxed income, but why do I need to tell them how much I have saved so far? Even my country does not ask such a report from me. If I can stay here in the US long-term, I have just decided to transfer all my money here and to not report FBARs, FATCAs and other nonsense forms. Would this work?!
#62
Passport Collector
Joined: Jan 2007
Location: Princeton, NJ
Posts: 725
Re: Quiet disclosure of FBAR
What do you do if you have signature authority, but no financial interest, in your employer's bank account? And if you have signed confidentiality agreements regarding disclosure of any balances in your employer's bank account?
I feel there is an argument that the FBAR violates the right to privacy guaranteed by the fourth amendment in these and other cases.
I feel there is an argument that the FBAR violates the right to privacy guaranteed by the fourth amendment in these and other cases.
#63
Re: Quiet disclosure of FBAR
Please stop. The FBAR issue is a real issue for individuals, and FATCA is not. Go back to your original thread and re-read it. You are muddying the FBAR waters here.
http://britishexpats.com/forum/showthread.php?t=698597
FATCA is all about financial institutions. You do not have to file similar information twice.
Thanks.
#64
Re: Quiet disclosure of FBAR
nun,
Please stop. The FBAR issue is a real issue for individuals, and FATCA is not. Go back to your original thread and re-read it. You are muddying the FBAR waters here.
http://britishexpats.com/forum/showthread.php?t=698597
FATCA is all about financial institutions. You do not have to file similar information twice.
Thanks.
Please stop. The FBAR issue is a real issue for individuals, and FATCA is not. Go back to your original thread and re-read it. You are muddying the FBAR waters here.
http://britishexpats.com/forum/showthread.php?t=698597
FATCA is all about financial institutions. You do not have to file similar information twice.
Thanks.
Last edited by nun; Feb 12th 2011 at 4:21 pm.
#65
Re: Quiet disclosure of FBAR
These waters are quite murky without me having to do much. I believe we had a difference over the application of withholding tax on overseas transfers to non-compliant FATCA foreign financial institutions. However, that is completely separate from the individual's requirement to comply with FATCA. I believe that FATCA is required for tax years after 18th March 2010, and the IRS is actively working on new forms. FATCA imposes a second filing requirement for foreign accounts in addition to FBAR. Section 511 of FATCA creates new IRC section 6038D, which requires U.S. taxpayers with foreign accounts and assets with an aggregate value exceeding $50,000 to report them on an informational return.
Now that is a bit scary. Assets potentially include cash, foreign real estate, foreign stocks and shares, hedge funds, equity funds, and who knows what else.
I tripped over a reasonably understandable article on this. Link follows for those that care:
http://www.lexology.com/library/deta...6-a17d42d0d178
The article closes with the following text:
Certainly, the doubling of the penalties and statute of limitations for foreign noncompliance may cause certain taxpayers to rethink investing abroad. However, it may very well be the accidental Americans and resident aliens under the substantial presence test who bear the greatest burden, as they often are not aware of their U.S. Form 1040 requirements, much less should they be expected to know about FATCA.
#66
Re: Quiet disclosure of FBAR
That's where a good tax CPA is worth their annual fee. Mine works it out and makes sure I comply.
The $325 fee he charges to do our taxes, make sure we comply with all the regulations which get overlooked, and work out my quarterly Federal and State tax payments for the coming year on my UK income is money well spent.
The $325 fee he charges to do our taxes, make sure we comply with all the regulations which get overlooked, and work out my quarterly Federal and State tax payments for the coming year on my UK income is money well spent.
#67
Re: Quiet disclosure of FBAR
So then would anyone with a house overseas have to file a FATCA form?
#68
Forum Regular
Joined: Apr 2008
Posts: 53
Re: Quiet disclosure of FBAR
The article I read says that US sourced foreign assets need to be reported under FATCA. If that is so, money and assets, eg. house in UK, would surely be exempt if the money came from UK income ? The balance in my UK account is a result of Uk income, which has already been taxed, and my house was paid for with a UK mortgage - there has never been any money sent from the US. I am not certain if this needs to be reported, although I do understand that I need to send an FBAR declaration and worldwide income and tax is submitted on the tax return. Am I missing something here?
#69
Re: Quiet disclosure of FBAR
The article I read says that US sourced foreign assets need to be reported under FATCA. If that is so, money and assets, eg. house in UK, would surely be exempt if the money came from UK income ? The balance in my UK account is a result of Uk income, which has already been taxed, and my house was paid for with a UK mortgage - there has never been any money sent from the US. I am not certain if this needs to be reported, although I do understand that I need to send an FBAR declaration and worldwide income and tax is submitted on the tax return. Am I missing something here?
Last edited by nun; Feb 12th 2011 at 8:27 pm.
#71
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,855
Re: Quiet disclosure of FBAR
I was going to start a new thread on this subject, but since this one is live I may as well post here.
I moved to the US in March 2010 on an L1A visa, and have been here since making me US resident. Accordingly I am filling a tax return for my worldwide income at present.
Reading the advise on the IRS website:
"Q. When is the FBAR due?
A. The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. Filers cannot request an extension of the FBAR due date. See also Notice 2010-23."
So it is my read that I need to file my first FBAR by June 30th 2011, as I would have become eligible in 2010, my first year of residence in the US.
Am I missing something?
tht
I moved to the US in March 2010 on an L1A visa, and have been here since making me US resident. Accordingly I am filling a tax return for my worldwide income at present.
Reading the advise on the IRS website:
"Q. When is the FBAR due?
A. The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. Filers cannot request an extension of the FBAR due date. See also Notice 2010-23."
So it is my read that I need to file my first FBAR by June 30th 2011, as I would have become eligible in 2010, my first year of residence in the US.
Am I missing something?
tht
#73
Re: Quiet disclosure of FBAR
No need to apologize, it's just important that we get FBAR and FATCA out in the open as the IRS doesn't let you use ignorance of the law as an excuse to avoid the fines.
#74
Re: Quiet disclosure of FBAR
Out of subject (i.e. FBAR) sorry
Can someone please direct me to a website or explain FATCA please? Is it not yet in live i.e. no reporting is needed? If I own properties (real estate) in my home country (exceedig 50K) do I need to deal with FATCA then as well?
I think (if I stay in the US which hopefully turns out this year) I need to consult with a tax expert. However, I would appreciate if anyone who knows more than me direct me to a useful website(s) or assist me here.
Thank you!
Can someone please direct me to a website or explain FATCA please? Is it not yet in live i.e. no reporting is needed? If I own properties (real estate) in my home country (exceedig 50K) do I need to deal with FATCA then as well?
I think (if I stay in the US which hopefully turns out this year) I need to consult with a tax expert. However, I would appreciate if anyone who knows more than me direct me to a useful website(s) or assist me here.
Thank you!
Last edited by EU_Girl; Feb 13th 2011 at 8:12 am.
#75
Re: Quiet disclosure of FBAR
Thanks for your thoughts nun!
Yes that would work. FBAR and FATCA are specifically for non-US accounts above a certain dollar amount. I came to the US out of college and took all the money out of my bank account in the UK. I didn't close my UK student bank account, but it had zero balance and after ten years of no activity the bank closed it for me