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 Daniel Kokhba Your Own Question
Daniel Kokhba
Daniel Kokhba,
Category: Business Law
Satisfied Customers: 1739
Experience:  Partner at Kantor Davidoff
11313492
Type Your Business Law Question Here...
Daniel Kokhba is online now
A new question is answered every 9 seconds

What do I need to be aware of (from tax and reporting

Customer Question

What do I need to be aware of (from tax and reporting standpoint) if I want to wire transfer $$ from a personal bank acct in Seoul, Korea to a US bank?
Submitted: 12 months ago.
Category: Business Law
Expert:  Mark CPA replied 12 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. Are these both your accounts? How much are you wiring?

Customer: replied 12 months ago.
Both the bank accounts in Seoul Korea and in the US are my own personal account. I am not sure how much I want to transfer; it depends. May be interested in wire transferring up to $500K.
Customer: replied 12 months ago.
Hello????
Expert:  Mark CPA replied 12 months ago.

Sorry I had to step away from the computer for a moment. Have you been filings a FBAR each year?

Customer: replied 12 months ago.
No. I just opened up the account earlier this year. TT
Customer: replied 12 months ago.
My CPA advised I talk to an International Attorney. I noticed you are a CPA. Do you work with an attorney to answer these questions? I am worried as I am not hearing back from you.
Customer: replied 12 months ago.
International Banking Attorney I mean.
Expert:  Mark CPA replied 12 months ago.

No I am not working with an attorney. Any transaction that is greater than $10,000 the IRS will receive a record of. Was the money for earnings? An inheritance? If it is just your money there is not forms or taxes that you would need to worry about for the wire. If it is from an inheritance you would need to complete form 3520 if the amount is greater than $100,000. You would also want to remain in compliance with FBAR regulations.

Customer: replied 12 months ago.
The money was a gift from family member who is still alive so it would not be an inheritance technically, correct? So if I wire under $10k from a foreign bank and do this regularly (bi montly or quarterly) is it still allowed by law? How do I access an International Banking Attorney? I would like to know the implications from the Korea side and want to talk to someone who could verify.
Expert:  Mark CPA replied 12 months ago.

Ok if it is a foreign gift you would still need to complete 3520. This is just an informational report. There is no taxes that are do.

Expert:  Mark CPA replied 12 months ago.

I can have the question reclassified to another category.

Expert:  Mark CPA replied 12 months ago.

https://www.irs.gov/businesses/gifts-from-foreign-person

Here is a link to the IRS website regarding the rules for a foreign gift. If the amount is over $100,000 form 3520 needs to be filed.

Customer: replied 12 months ago.
Whaf happens if I wire more than $10k? Also Where do I get the form 3520? Is that a US tax form that I get through my CPA. Do u think it would be wise for me to talk to an international banking attorney?
Expert:  Mark CPA replied 12 months ago.

Yes, your CPA could help you with the Form 3520. It is not a big deal if you wire more than $10,000. The government just tracks these transactions to identify illegal activities. Let's assume that you are reporting income of $30,000 each year and then suddenly $500,000 is transferred into your bank account. The government is going to wonder what is the source of this money? Was the income reported? Did it come from illegal activities etc? That is why form 3520 is needed.

Expert:  Mark CPA replied 12 months ago.

I am not sure if there are any tax consequences regarding the $500,000 gift from South Korea. There are none from the US perspective. I think it would be worthwhile to talk with an international banking attorney - even if it is just for the peace of mind.

Customer: replied 12 months ago.
1. I'm sorry that I'm not understanding very well Mark. So if I wire transfer the entire amount, the only issue is I have to file a 3520---that's it or is there more since it is > $10K.
2. Can you refer me to an International Banking Attorney who might be able to answer my question.
I appreciate you. You have been very helpful. Sorry I am not understanding too well.
Customer: replied 12 months ago.
It's just that it's such a hassle to wire money regularly or pull out of an ATM. I am and need to use that money to help pay for my family's healthcare and if I could, it would be so much easier if I can move all of the money to the US but not sure if that would cause questions from the IRS or other federal agencies. I'm not sure why I am so worried because it is not illegal at all but I just don't know and don't need the stress and the hassles.
Expert:  Mark CPA replied 12 months ago.

The form 3520 is required if you receive a gift from a foreign citizen of more than $100,000.

The $10,000 rule is reporting that are required of US banks.

Expert:  Mark CPA replied 12 months ago.

It would not cause questions especially if the gift is reported on form 3520. I am going to move the question to a law section.

Customer: replied 12 months ago.
Can you refer an International Banking Attorney please?
Expert:  Mark CPA replied 12 months ago.

I requested an international banking attorney.

Customer: replied 12 months ago.
Do I just wait for someone in the law service to contact me now?