BajaNomad

FATCA and Baja Bank Accounts?

LancairDriver - 5-13-2014 at 07:28 PM

The IRS has announced their intention to enforce the Foreign Account Tax Compliant Act (FATCA) within the year. Mexican Banks will be required to report foreign accounts according to IRS rules, and of course individuals living in Mexico and having bank accounts will apparently have some extra paper work to do.

The Foreign Account Tax Compliance Act (FATCA) is a United States statute that requires United States persons, including individuals who live outside the United States, to report their financial accounts held outside of the United States, and requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their American clients. Congress enacted FATCA to make it more difficult for U.S. taxpayers to conceal assets held in offshore accounts and shell corporations and to recoup federal tax revenues.[1] The FATCA is a portion of the 2010 Hiring Incentives to Restore Employment (HIRE) Act.[2][3]

DavidE - 5-14-2014 at 09:52 AM

Same thing for Canadians. According to a friend, Canadians that live outside Canada, and do not report are listed with Revenue Canada. If they earn money outside of Canada and do not report it annually "They're In a Lot Of Trouble. David"- Even spouses, of Mexican citizens are not exempt. When I get a chance I like to stop in at the San Diego office of the IRS and prod them for fun. My income and tax records are as transparent as glass - poverty level. You should see the look of utter dismissal on the face of a IRS "agent" when there is no smell of money.