Down under or Thai? Aussie mum trades Oz for Land of Smiles

[bri1guy]

Its that dreaded time of year & I am filing my US taxes & not sure what I should do about reporting my thai banking accounts. I have have been asked if I have a overseas account with over $10,000 US in it? Now I have only had 250k Baht or less in several accounts and with the US dollar falling it was once worthover 10k US but now worth possibly less.. I have recieved interest also with these thai accounts , should this be reported to the US & if not will they even ever know? I don't recall if the thai banks took my US social # but I I don't think so... Now I have over 800 k in one of my accounts but it wasn't in 2007 so maybe I should move some of that money around so that I don't have over $10k US.. Does anyone know what is the best approach ??? Thanks

[Jingthing]

This is the rule:

You must report every single foreign bank account that had over 10K USD for even one second in any given tax year.

You must report interest.

The bank account report is done separately to the treasury department. Yes, some people have to state that they had such an account to the IRS also with a checkmark only, but the formal report is done to the treasury department and the deadline for that is later than April 15. On the formal form, the bank name and account number is required. The penalties for not reporting to treasury are shockingly ruinous. Just do it, why not?

The form you must file to treasury is called FBAR, this should help:

http://www.irs.gov/businesses/small/articl...=148845,00.html

Edited March 30, 2008 by Jingthing

[bri1guy]

Thanks I will try to always keep way under $10 k in any 1 given account (Per bank) ... Do I have to report interest on all these accounts if they were under the 10k or is there a minimum dollar amount like I recall possibly $400 or under in one year per account ???

[Jingthing]

Thanks I will try to always keep way under $10 k in any 1 given account (Per bank) ... Do I have to report interest on all these accounts if they were under the 10k or is there a minimum dollar amount like I recall possibly $400 or under in one year per account ???

Best ask a more expert person on the 400 dollar rule. If it was me, if I reported the account to treasury and I had any interest at all, I would report it. If it was an account that you didn't have to report to treasury, well, how would they know about it? I have always felt that reporting petty things like this make you look more honest, which is something you want the IRS to think about you, even if you are not.

[Thanyaburi Mac]

This is the rule:

You must report every single foreign bank account that had over 10K USD for even one second in any given tax year.

You must report interest.

The bank account report is done separately to the treasury department. Yes, some people have to state that they had such an account to the IRS also with a checkmark only, but the formal report is done to the treasury department and the deadline for that is later than April 15. On the formal form, the bank name and account number is required. The penalties for not reporting to treasury are shockingly ruinous. Just do it, why not?

The form you must file to treasury is called FBAR, this should help:

http://www.irs.gov/businesses/small/articl...=148845,00.html

Jingthing

You sure that's not "FUBAR" for the system of reporting??

Note, however, that the www site states quite clearly:  "Who must file an FBAR?

Any United States person who has a financial interest in or signature authority, or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year."

So if you had, say, the baht equivalent of $2,500 in each of four different foreign accounts, perhaps even i four different countries, you're required to file that form. 

Mac

[Jingthing]

Wow, I didn't realize that thanya. Thanks!

So now I have a question because I have two Thai bank accounts.

One is always over 10K USD so I know I must report.

I have another account with is never over 1K USD. Do you think I need to report the smaller amount account as well?

[taxout]

If the aggregate value of your foreign accounts exceeds US$10,000 at any time during the year, then you need to report all your foreign accounts.

Note that the reporting requirements apply not only to accounts over which you have signature authority, but also to accounts in which you have a financial interest.

And they apply not just to bank accounts but to securities accounts, as well.

You report your foreign accounts to the Treasury Department on Form TD F 90-22.1.

In addition, if you have an account in a foreign country, then -- regardless of amount -- you also have to disclose the country to the IRS on line 7b of Form 1040, Schedule B.

[Jingthing]

Thanks taxout. I only got the second account this year so I hadn't thought about the need to report the smaller account.