Foreign bank accounts and the IRS

MiltonFriedman · #1 10-23-2006, 12:12 PM

" ......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.

rabbitlover · #2 10-23-2006, 12:50 PM

So how does a US citizen open a foreign account? And where would the best location be?

DespotInExile · #3 10-23-2006, 12:54 PM

Opening a foreign account increases your audit profile. Of course, you dont have to declare your foreign account, but then you commit a felony.

rabbitlover · #4 10-23-2006, 01:20 PM

I'm not worried about being audited. I plan to follow the law. But has anyone here actually opened a foreign bank account?

MiltonFriedman · #5 10-23-2006, 01:30 PM

yes

SmackinYaUp · #6 10-23-2006, 01:35 PM

[ QUOTE ]
yes

[/ QUOTE ]

Wow, I don't know what this thread would have done had you never been born. Thank you.

rabbitlover · #7 10-23-2006, 01:56 PM

Yes, Miltie you are very helpful. Hopefully someone here who truly knows about this would like to be of help.

Megenoita · #8 10-23-2006, 12:59 PM

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.

Guthrie · #9 10-23-2006, 01:13 PM

[ 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."

MiltonFriedman · #10 10-23-2006, 01:17 PM

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.