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person is a US citizen I do not wish to divulge the country and the amount is over $10,000
what more information?
Your information was good. Lets say the Country was New Zealand, could you tell me if the US has a treaty regarding capital gains and double taxation
There is a tax treaty between the U.S. and New Zealand. Article 6 of the treaty relates to income from real property and Article 22 addresses the elimination of Double Taxation. As you are a citizen of the U.S., any taxes that you paid to New Zealand will be credited back to you on your U.S. tax return. Paragraph 1 section (a) of Article 22 reads as follows;
If I understand you correctly you are saying that if new zealand has a lower tax rate on savings the Us gov"t will give you a credit for the tax you paid to new zealand and then turn around and tax you at a possible higher rate of the US tax, is that correct?
I never knew this. I have had this bank for many many years, am I in some kind of tax trouble
Help in completing Form TD F 90-22.1 (PDF) is available Monday - Friday, 8 a.m. to 4:30 p.m. Eastern Time, at(NNN) NNN-NNNN(toll-free inside the U.S.) or(NNN) NNN-NNNN(not toll-free, for callers outside the U.S.). The form is available online at IRS.gov and Financial Crimes Enforcement Network Website or by telephone at(NNN) NNN-NNNN Questions regarding the FBAR can be sent to [email protected].
I'll get back with you regarding the Form 8938.
As for the Form 8938, the following applies if you are an unmarried filer;
I understand you need to leave for now, but I still would like some clarification and your response can be later in the AM that is fine.
Now, when you said that typically the IRS would go back the last 6 years if i were to amend the situation and pay the interest earned on that account to the US as well, in addition to some possible penalties, is that the standard way of amending the situation whether or not I choose to voluntarily inform them of the account OR if they were to find out about it on their own? Or would I be subject to additional penalties, even criminal, if I were to just say wait until they were to find out about it themselves.
I fully intend to fix this situation myself, just would like to know if theres any difference in penalties and consequences if I let them know or if they were the ones to find out.
If I wasn't clear in my previous response, what I meant to convey was that in order for a taxpayer to be in compliance, the IRS requires the last 6 years of returns and 7 years of FBARS to be filed. Since you already filed your returns, I am assuming that you have filed the returns, this means that you should amend the last 6 years of returns.
In brief, the answer is YES, it is better to voluntarily disclose. SEE BELOW:
Following is why you should voluntarily disclose;Taxpayers with undisclosed foreign accounts or entities should make a voluntary disclosure because it enables them to become compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution. Making a voluntary disclosure also provides the opportunity to calculate, with a reasonable degree of certainty, the total cost of resolving all offshore tax issues. Taxpayers who do not submit a voluntary disclosure run the risk of detection by the IRS and the imposition of substantial penalties, including the fraud penalty and foreign information return penalties, and an increased risk of criminal prosecution. The IRS remains actively engaged in ferreting out the identities of those with undisclosed foreign accounts. Moreover, increasingly this information is available to the IRS under tax treaties, through submissions by whistleblowers, and will become more available under the Foreign Account Tax Compliance Act (FATCA) and Foreign Financial Asset Reporting (new IRC § 6038D). I suggest that you read over the reference source, as it will provide more detailed information relating to the matter.REFERENCE SOURCE:http://www.irs.gov/Individuals/International-Taxpayers/Offshore-Voluntary-Disclosure-Program-Frequently-Asked-Questions-and-Answers-----------------------------------------Following is a Forbes articles relating to the FBAR Voluntary disclsoure Program. I think it will be beneficial for you to read it.http://www.forbes.com/sites/irswatch/2013/06/12/irs-fbar-voluntary-disclosure-program-taxpayer-interviews/Hopefully this clarifies matters for you.Please remember to positively rate my answer. This is how I receive credit for assisting you.
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