C-Urchin
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Reporting bank accounts abroad
I hear that when you open an account in Mexico or anywhere on this earth for that matter, the KGB, oops... I R S wants to know about it. Same for a
Fideicomiso, which is NOT a trust...read that somewehere on Nomads. Anybody have experience with this and want (or dare) to share their opinions about
it?
*Be the man your dog thinks you are
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krafty
Super Nomad
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What happens in Mexico stays in Mexico
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Hook
Elite Nomad
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When we opened our Banamex account, they wanted our SS # or no account. The bank manager told us that, unless you earn interest on any account, they
do NOT report your account to the US. Our simple account earns no interest. We gave up the numbers.
Who knows, really,if they go unreported? I can only say that we have nothing to hide from the IRS. We play by the book, take every exemption possible
and pay every tax required.
Most of my Canadian friends only WISH they paid as little taxes as we did. legally.
[Edited on 5-7-2011 by Hook]
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C-Urchin
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scary
From the link above:
Penalties
A person who is required to file an FBAR and fails to properly file may
be subject to a civil penalty not to exceed $10,000. If there is reasonable
cause for the failure and the balance in the account is properly reported,
no penalty will be imposed. A person who willfully fails to report an
account or account identifying information may be subject to a civil
monetary penalty equal to the greater of $100,000 or 50 percent of the
balance in the account at the time of the violation. See 31 U.S.C. section
5321(a)(5). Willful violations may also be subject to criminal penalties
under 31 U.S.C. section 5322(a), 31 U.S.C. section 5322(b), or 18 U.S.C.
*Be the man your dog thinks you are
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Dave
Elite Nomad
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Just the opposite up north
| Quote: | Originally posted by Hook
The bank manager told us that, unless you earn interest on any account, they do NOT report your account to the US. Our simple account earns no
interest.
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U.S. banks are not currently required to report interest on accounts held by foreign nationals. Mexico is screaming about it. There's billions of its
citizens money in U.S. banks earning income and going unreported.
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mojo_norte
Senior Nomad
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Tax implications of having a Fideicomiso...
http://fideicomiso.wordpress.com/
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longlegsinlapaz
Super Nomad
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Me too! File TDF-90.22.1 any year that my Mexican bank balance goes over $9,999.99 & am working diligently to see that it stays under the magic
$10K number even if I have to make a withdrawal & re-deposit it in the dog's kennel!
Ditto on the 3520 & 3520A....US tax specialists say that the IRS is currently considering Fideicomisos to be a trust; I disagree,
but the IRS threats were simply too great for me to ignore & it doesn't impact the bottom line on my return one iota!
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C-Urchin
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$$$
| Quote: | Originally posted by longlegsinlapaz
Me too! File TDF-90.22.1 any year that my Mexican bank balance goes over $9,999.99 & am working diligently to see that it stays under the magic
$10K number even if I have to make a withdrawal & re-deposit it in the dog's kennel!
Ditto on the 3520 & 3520A....US tax specialists say that the IRS is currently considering Fideicomisos to be a trust; I disagree,
but the IRS threats were simply too great for me to ignore & it doesn't impact the bottom line on my return one iota! |
Where is that dog kennel? :-) Lucky dog.
*Be the man your dog thinks you are
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mcfez
Elite Nomad
Posts: 8678
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Location: aka BN yankeeirishman
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| Quote: | Originally posted by morgaine7
At some point I decided that it's easier just to file the stuff and be done with it than to keep trying to figure out whether or not I have
to file it. I can't afford to not file and be wrong, and there's nothing to lose by filing since I don't owe them any money anyhow.
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Sound advice.
I would certainly read morgaine's reply..........a few times!
Old people are like the old cars, made of some tough stuff. May show a little rust, but good as gold on the inside.
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slimshady
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Call the IRS on any given day and they will give ten different answers regarding the FIDO and tax reporting. If you feel you need to report then go
ahead and open your world up to the IRS.
The IRS is concerned about money flowing out and not about money flowing into the country should one.
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MitchMan
Super Nomad
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Registered: 3-9-2009
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Side point: Never call the IRS and rely on verbals obtained therefrom. Vebals have no legal effect one way or another under any and all
circumstances. Such calls are never considered valid tax research. Also, as mentioned above, you will get bad information most all of the time. In
private business tax departments, their tax researchers and compliance people never ever call a taxing agency for anything. All communications are
always done in writing only.
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LaloinBaja
Junior Nomad
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Registered: 10-29-2010
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El Candil Bar and Cafe in Mulege
Can anyone help me with the contact info for Scotty at El Candil Bar in Mulege??....Thanks...Lalo
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Von
Senior Nomad
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How does it work when you buy say land for 50k ten yrs ago and you sell it and want to bring back the 50k to the US do they tax you on that? im
confused
READY SET.....................
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Riom
Nomad
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Registered: 12-17-2004
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| Quote: | Originally posted by Von
How does it work when you buy say land for 50k ten yrs ago and you sell it and want to bring back the 50k to the US do they tax you on that? im
confused |
Neither Mexico or the USA (currently) have exchange controls, you can transfer money freely between them without any tax effect in either country.
If (big IF!) you make a profit on a sale in Mexico, you pay Mexican income tax on the profit (with a few exceptions, which are now difficult to
qualify for).
Americans then have to put the capital gain on their US tax return as well (even if you leave the money in Mexico or move it to another country), with
a credit for the tax already paid to Mexico (so it doesn't get taxed twice).
Rob
[Edited on 2011-5-12 by Riom]
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