How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Chris The Lawyer Your Own Question
Chris The Lawyer
Chris The Lawyer, Lawyer
Category: Tax
Satisfied Customers: 22411
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
32702153
Type Your Tax Question Here...
Chris The Lawyer is online now
A new question is answered every 9 seconds

I have a new zealand account but a US tax problem. I am an

Customer Question

I have a new zealand account but a US tax problem. I am an American and have not declared that account. It is about $350K. Should I declare it or not? I will have to give them about 50% before I get done. I only have 7 more days to declare or not. If they find it it will be worse,
Submitted: 5 years ago.
Category: Tax
Expert:  Chris The Lawyer replied 5 years ago.

christhelawyer :

Hi Welcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear

christhelawyer :

Is this money from income in the US but held in New Zealand?

JACUSTOMER-1ez4ecu4- :

No. It was all money I made from working here in Thailand. But US tax law does not care about that. They want 25% of the account at Forsyth Barr and 35% of any of the bank accounts (highest balance in any year) plus any interset and gains.

JACUSTOMER-1ez4ecu4- :

So will the US IRS find the money in New Zealand at Forsyth or not? Or should I just close the account and put it inot real estate or precious metals? It is alot of monwy to pay them

JACUSTOMER-1ez4ecu4- :

I am sorry (typo) they want 25% of everything not reported overseas.

JACUSTOMER-1ez4ecu4- :

So the remaining monies at Forsyth will have to go to pay them. About 50% of it. Not a small amount. I am ready to file it but just thought I would ask a legal opinion.

Chris The Lawyer and other Tax Specialists are ready to help you
Customer: replied 5 years ago.
Please reply. Or do you need to sonsult with others? I need to declare this in 7 days.
Expert:  Chris The Lawyer replied 5 years ago.
This is a US tax question except to the extent that the money is here. If you are intending to return to the US you will sooner or later have to talk to Inland Revenue about this. They cannot seize the money in New Zealand because international law prevents another country from bringing actions to recover tax in for example, New Zealand. So they cannot take the money but you may end up a tax exile.
Chris The Lawyer and other Tax Specialists are ready to help you
Customer: replied 5 years ago.

They tell me that there is no capital gains (or losses) on my stocks in New Zealand and they always take out any tax on interest and dividends for New Zealand tax people. So I should not have a problem with the NZ tax people? BUT the problem is with the USA tax people.

Expert:  Chris The Lawyer replied 5 years ago.
You are correct that there is no capital gains tax, although you can be taxed on profits if you do a lot of buying and selling of shares, and of course you are aware of the with holding taxes. There is a double taxation treaty so if you have paid some tax here this would come off the US tax liability