Foreign bank accounts and the IRS
I've read in the threads some people kicking around the idea of opening a foreign bank account in order to avoid Treasury regulations preventing gaming transactions, etc. Just so you know, if you have a foreign bank account w/ more than $10k in it, you must declare this to the IRS. Link.
|
Re: Foreign bank accounts and the IRS
That's $10k total in all of your foreign accounts, so trying to avoid the limit by having multiple accounts will not work either.
But the IRS just wants the taxes you owe, so report your winnings and don't worry that you have to report your foreign accounts as well. |
Re: Foreign bank accounts and the IRS
This rule applies to Neteller as well. From my research (can't remember the thread right now) it was proven that Neteller WOULD need to be claimed as well if the balance ever exceeded 10k since Neteller's own definition of its activities matches that of this regulation. This is not an IRS regulation, but a banking(or fed reserve requirement)
Either way, I have no issue reporting to IRS. [censored], I'll give them copies of the bank statements if they want them. I'm not looking to hide anything with this, unless of course they start prosecuting the little guys [img]/images/graemlins/wink.gif[/img] Until then, I'll gladly pay my fair share of taxes KNOWING full well that those tax dollars go to pay the salaries of the very people making this difficult for me. |
100% wrong advice
" ......don't worry that you have to report your foreign accounts as well. "
This is 100% wrong advice. The reporting of foreign bank accounts is a separate requirement and duty from paying taxes on your income. It is a crime not to report foreign bank accounts as required. |
Re: 100% wrong advice
So how does a US citizen open a foreign account? And where would the best location be?
|
Re: 100% wrong advice
Opening a foreign account increases your audit profile. Of course, you dont have to declare your foreign account, but then you commit a felony.
|
Re: 100% wrong advice
Neteller does have to be reported if a balance exceeds $10k. But I don't see how that would prevent us from using it for gambling.
|
Re: 100% wrong advice
[ QUOTE ]
" ......don't worry that you have to report your foreign accounts as well. " This is 100% wrong advice. The reporting of foreign bank accounts is a separate requirement and duty from paying taxes on your income. It is a crime not to report foreign bank accounts as required. [/ QUOTE ] I think he's saying "report the accounts, and don't worry about it," not "don't report the accounts." |
Doh !!! Apologies to ChristinaB, bad read by me.
Thanks, Guthrie.
It is far better to keep one's mouth shut and be thought an idiot than to open it and confirm it to be true. My bad. |
Re: 100% wrong advice
I'm not worried about being audited. I plan to follow the law. But has anyone here actually opened a foreign bank account?
|
Re: 100% wrong advice
yes
|
Re: 100% wrong advice
[ QUOTE ]
yes [/ QUOTE ] Wow, I don't know what this thread would have done had you never been born. Thank you. |
Re: 100% wrong advice
Yes, Miltie you are very helpful. Hopefully someone here who truly knows about this would like to be of help.
|
Re: 100% wrong advice
http://forumserver.twoplustwo.com/sh...age=3&vc=1
Link to a thread I asked a similar question and someone was kind enough to respond |
Re: 100% wrong advice
Thanks so very much. This is what the forum is for.
Do you mind my asking, do you fund your poker clients thru this account, or do you plan to in the future? Thanks again. |
Re: 100% wrong advice
I'm first looking into it now. I know the poster in the other thread said you could do it online, but I'd probably have to go over there and see for myself. I believe he said he has been funding his account that way for a while. This would only be an option to me when Neteller does pullout. I'm just hoping they don't do it like the Crypto's did.
Hopefully I have at least 30 days to do some due-diligence. Either way, the foreign account route appears to be the best option for my purpose, especially if I can transfer to sites with the credit card for no fee and either EFT from foreign bank account to U.S. bank account for free as well. Worst case, it should just take a wire. We'll see. |
Re: 100% wrong advice
You can't EFT from a foreign account. It's a USA/Canada thing.
|
Re: 100% wrong advice
Could just write a physical check from foreign bank to US bank....
|
Re: 100% wrong advice
If you have to report neteller over 10K, whats is the regulation if you transfer said amount on dec 30th so the balance was under 10K. My neteller fluctuates a lot throughout the year, I never knew you were suppose to say anything regardless as long as you report earnings. So neteller is considered an offshore bank?
|
USE EPASSPORTE
use epassporte. they are an overseas online bank with a debit visa that all poker sites have as an option.
if you open an overseas bank account you MUST report said account when you file your taxes. there is a specific box to check IF you have an overseas account. |
Re: 100% wrong advice
You have to report it if your balance EVER exceeded 10k at any point throughout the year.
|
Re: 100% wrong advice
[ QUOTE ]
You have to report it if your TOTAL BALANCE IN ALL FOREIGN ACCOUNTS EVER exceeded 10k at any point throughout the year. [/ QUOTE ] FYP |
Re: 100% wrong advice
What if you never have over 10k in your Neteller account, but you do have a lot more than 10k in various poker sites? Are the poker sites themselves foreign accounts? Obvioiusly this is a question for a tax advisor, but I'm wondering if any of you have asked your tax advisor, and if so, what did they say?
Also, when do you have to report the foreign account? Before the end of the year? At the same time you do your taxes? As soon as your account exceeds 10k? Some other time? |
Re: 100% wrong advice
Form TD F 90-22.1 is due to be sent to the Dept of Treasury by June 30th of the following year. You also much check off the box on you 1040 Sch B, obviously when you file your return.
imo, the 10K includes the value in poker accounts, since they are accounts to which you have a financial interest and are located overseas (usually in a bank). As with all tax & related advice, you should consult a qualified tax professional to discuss your specific situation. Not filing this form carries penalties, so it pays to understand your obligations with regard to filing this form. |
Re: USE EPASSPORTE
[ QUOTE ]
use epassporte. they are an overseas online bank with a debit visa that all poker sites have as an option. if you open an overseas bank account you MUST report said account when you file your taxes. there is a specific box to check IF you have an overseas account. [/ QUOTE ] Why do you believe you will still be able to use them after the Treasury rules are in place? Neteller and Firepay have decided they cannot accept US deposits. |
Re: 100% wrong advice
[ QUOTE ]
What if you never have over 10k in your Neteller account, but you do have a lot more than 10k in various poker sites? Are the poker sites themselves foreign accounts? Obvioiusly this is a question for a tax advisor, but I'm wondering if any of you have asked your tax advisor, and if so, what did they say? [/ QUOTE ] I don't think this has really been decided, or at least if so it hasn't been published by the Treasury or IRS. [ QUOTE ] Also, when do you have to report the foreign account? Before the end of the year? At the same time you do your taxes? As soon as your account exceeds 10k? Some other time? [/ QUOTE ] That question is answered here: http://www.onlinepokerfaq.com/guide/tax-fbar-90221.html -MrPokerToad |
All times are GMT -4. The time now is 01:24 AM. |
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.