Money From Us For House In Thailand

Will27 · February 10, 2011

Bear with me please Trend Setters

I am trying to help a friend who has been fleeced by his Thai wife

(2nd time, he never learns).

Long story hopefully shortened. He transferred approx $90 000 USD

to Thailand and gave it to his wife (marriage not registered at Amphur)

for a house.

After a year, things went tit's up and she kicked him out.

Now he has told me, that he will have to tell the IRS what he did with the

money he transferred to Thailand. He then said he thinks that the IRS

will contact Thailand Tax Dept to find out if she paid tax on the money (<deleted>).

He thinks that if they contact her, she will make things hard for

him in Thailand. She has a few Thai cop friends.

So the bottom line is, A. does he have to tell the IRS what he did with the

money, B. What is the likelihood of the IRS contacting her and C. is that

money taxable?

I'm trying to tell this guy not to worry but he's is a constant worrier.

Thanks for any advice/help.

Regards

Will

InterestedObserver · February 10, 2011

1. As long as the money was legally his, the appropriate taxes paid in the US, and legally transferred then the IRS should not get involved, although they are apparently asking. All transactions of $10,000.00 USD and above must be reported to the IRS by banks etc.

2. Tell the IRS that the money was used to purchase a house - which is true. I'm assuming the IRS is looking for illegal drug or terrorist related activity.

3. There is no gift tax in Thailand. The money given as a gift to his Thai girl friend (they are not legally married) is free and clear of Thai taxes.

4. If the $90,000.00 USD was in this Thai bank account and not reported to the US Treasury Department, then he could potentially have a problem.

Edited February 10, 2011 by InterestedObserver

Jingthing · February 10, 2011

Agreed if the FBAR form wasn't filed to the treasury department on that money, this could be a nightmare. Not about tax, but about a huge fine for not filing FBAR. The fines on paper for not filing are shockingly large. On the other hand, it is very hard to determine how they actually enforce the fines but if the IRS is contacting and the form wasn't filed, they know this for sure, and they have that American over a barrel now.

Edited February 10, 2011 by Jingthing

Langsuan Man · February 10, 2011

The only reason I could see for the IRS questioning what happened to the money, is if the money was from an IRA or other tax deferred program

And yes, as everyone has stated the money must be reported before June 30th following the tax year it was transferred into Thailand, regardless of how much interest it earned in Thailand

See the instructions in the attached Treasury reporting form:

TD F 90-22.1.PDF

InterestedObserver · February 10, 2011

I hope not for his sake, taking $90,000.00 USD from an differed tax IRA and not paying the income tax, including possibility a 10% penalty for early withdraw, is beyond stupid.

thailandbluegrass · February 10, 2011

If the money was in his account in USA why would the IRS have any knowledge what so ever of this? Something fishy here I think. You say that they are questioning him about it? How do they know about "it"?

Also you say he transfered it to Thailand but do not say if he transfered it to an account HE has here or strait to his gf's account? Either way the transaction statement would be enough.

| have heard that you can't "CARRY" 10,000.00 + into other countries but Personally I have never heard about "TRANSFERING" 10K plus? I could be wrong and would like to know also please?

Again, why does he have to tell the IRS?

PS; For that amount I can get implants, lip enhancement, casterated and some nice sexy clothes AND hair extension if he need a new teerak. lol

Jingthing · February 10, 2011

These days, I think various US agencies know about ALL SWIFT transfers, even under 10K USD. If not yet, soon. The grip is tightening. Most of us aren't what they are looking for, but it's a potential hit for all of us.

Edited February 10, 2011 by Jingthing

InterestedObserver · February 10, 2011

Again, why does he have to tell the IRS?

The Internal Revenue Service (IRS) in the US has to be informed, in one way or another, about all monetary transactions exceeding $10,000.00 USD entering or leaving US borders. Additionally, the US Treasury Department has to be informed if you had more than $10,000.00 USD sum total in your foreign bank accounts during the year. Failure to do either can land you in a heap of trouble.

Will27 · February 11, 2011

Thanks for that guys.

I've let him know that he should be ok.

Just to add, he phoned me last night and said his wife said he

could come back for 1 million Baht plus 20 000 per month. The

sad thing is that he counter offered with 100 000 and 20 000

per month. She knocked him back, no doubt holding out for

the million.

And thailandbluegrass, I'll let him know of your kind offer

I think he is beyond help.

Regards

Will

jalansanitwong · February 11, 2011

Im sorry,but your friend sounds like a total moron. Is he aware that the person pulling all the strings is probably her Thai husband??? Thai's always frighten western men by saying their family is connected to thai cops.