Foreign bank accounts and the IRS

[DespotInExile]

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.

[ChristinaB]

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.

[I_C_ALL]

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.

[MiltonFriedman]

" ......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]

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

[DespotInExile]

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

[Megenoita]

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]

[ 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]

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.

[rabbitlover]

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