Latest Info On Thailand Compliance With Us Fatca Law

[maxman71]

This affects US citizens and US Green Card holders with bank accounts and other financial services accounts in Thailand.

The US FATCA law (Foreign Account Tax Compliance Act) appears to be on its' way to being implemented in Thailand.

Please click on this link for links to various recent news articles in the Thai press concerning this development:

http://www.google.com/#hl=en&tbo=d&rlz=1R2LENN_enUS462&biw=1139&bih=500&sclient=psy-ab&q=thailand+compliance+FATCA&rlz=1R2LENN_enUS462&oq=thailand+compliance+FATCA&gs_l=hp.3...1942.11057.0.12871.35.27.5.3.3.0.194.3122.7j20.27.0.les%3B..0.0...1c.1.3.psy-ab.-7nIb-Oz5CQ&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.&bvm=bv.42452523,d.b2I&fp=17efb8a1cdd7c58b

For those US citizens and US Green Card holders with Thai bank accounts that have been previously unreported (when required to do so) to the US IRS, the implementation of FATCA has some very serious consequences for you.

Whether or not you agree with this sort of requirement, you need to know what is going on for your financial and legal well-being.

[NeverSure]

Thanks for the link. It won't affect me. Every dime of income I have is generated in the US and already reported. SS, other income, already gets a form sent to IRS. There is no choice but to stay current on income taxes or they'd cut off my SS.

Besides, I sleep better, and if I ever need to return to the US for health reasons (Medicare) or others, I'm free to do so.

In reading, it appears that others may opt out of reporting in exchange for closing all Thai bank accounts.

[maxman71]

Thanks for the link. It won't affect me. Every dime of income I have is generated in the US and already reported. SS, other income, already gets a form sent to IRS. There is no choice but to stay current on income taxes or they'd cut off my SS.

Besides, I sleep better, and if I ever need to return to the US for health reasons (Medicare) or others, I'm free to do so.

In reading, it appears that others may opt out of reporting in exchange for closing all Thai bank accounts.

It's not just the reporting of income and payment of taxes that they're after, the want to know about offshore bank accounts with an aggregate amount of USD 10,000 or more, even if that amount is met for even one day in a given year. This is reported using the FBAR form (Foreign Bank Account Reporting) that is filed separately from the 1040 and it is due by June 30 every calendar year for the prior year. The IRS just last year required yet another form (8938) to be filed with the 1040. The 8938 captures various foreign assets, including foreign bank accounts and actually is somewhat redundant with the FBAR info.

Also, if a US citizen/Green Card holder has at least 10% ownership of a foreign corp, trust, etc. (i.e. Thai Limited Co.), there are a plethora of reporting forms required to be filed with the 1040 concering the foreign corp.An FBAR for the foreign corp's bank account, if the US citizen/GC holder has signatory authority on the account, is also required to be filed by June 30, same as for personal accounts.

For those wishing to escape disclosure of their accounts by closing them, that means luigging around/protecting a bunch of cash. And, if they wish to bring that cash back to the US, if they are bringing in USD 10,000 or more, that cash is subject to confiscation if not declared upon entry and the source of it is disclosed on US Customs forms.

Like you, I am in compliance and also sleep better too. If one gets caught by the IRS for not disclosing accounts, paying any tax due from those accounts, etc., the penalties are indeed stiff, to say the least. This FATCA law is designed to catch those who have not been in compliance, despite several partial amnesty programs offered by the IRS to come clean.

[NeverSure]

Thanks for the link. It won't affect me. Every dime of income I have is generated in the US and already reported. SS, other income, already gets a form sent to IRS. There is no choice but to stay current on income taxes or they'd cut off my SS.

Besides, I sleep better, and if I ever need to return to the US for health reasons (Medicare) or others, I'm free to do so.

In reading, it appears that others may opt out of reporting in exchange for closing all Thai bank accounts.

It's not just the reporting of income and payment of taxes that they're after, the want to know about offshore bank accounts with an aggregate amount of USD 10,000 or more, even if that amount is met for even one day in a given year. This is reported using the FBAR form (Foreign Bank Account Reporting) that is filed separately from the 1040 and it is due by June 30 every calendar year for the prior year. The IRS just last year required yet another form (8938) to be filed with the 1040. The 8938 captures various foreign assets, including foreign bank accounts and actually is somewhat redundant with the FBAR info.

Also, if a US citizen/Green Card holder has at least 10% ownership of a foreign corp, trust, etc. (i.e. Thai Limited Co.), there are a plethora of reporting forms required to be filed with the 1040 concering the foreign corp.An FBAR for the foreign corp's bank account, if the US citizen/GC holder has signatory authority on the account, is also required to be filed by June 30, same as for personal accounts.

For those wishing to escape disclosure of their accounts by closing them, that means luigging around/protecting a bunch of cash. And, if they wish to bring that cash back to the US, if they are bringing in USD 10,000 or more, that cash is subject to confiscation if not declared upon entry and the source of it is disclosed on US Customs forms.

Like you, I am in compliance and also sleep better too. If one gets caught by the IRS for not disclosing accounts, paying any tax due from those accounts, etc., the penalties are indeed stiff, to say the least. This FATCA law is designed to catch those who have not been in compliance, despite several partial amnesty programs offered by the IRS to come clean.

Good post. You might add prison to it haha.

[maxman71]

Thanks for the link. It won't affect me. Every dime of income I have is generated in the US and already reported. SS, other income, already gets a form sent to IRS. There is no choice but to stay current on income taxes or they'd cut off my SS.

Besides, I sleep better, and if I ever need to return to the US for health reasons (Medicare) or others, I'm free to do so.

In reading, it appears that others may opt out of reporting in exchange for closing all Thai bank accounts.

It's not just the reporting of income and payment of taxes that they're after, the want to know about offshore bank accounts with an aggregate amount of USD 10,000 or more, even if that amount is met for even one day in a given year. This is reported using the FBAR form (Foreign Bank Account Reporting) that is filed separately from the 1040 and it is due by June 30 every calendar year for the prior year. The IRS just last year required yet another form (8938) to be filed with the 1040. The 8938 captures various foreign assets, including foreign bank accounts and actually is somewhat redundant with the FBAR info.

Also, if a US citizen/Green Card holder has at least 10% ownership of a foreign corp, trust, etc. (i.e. Thai Limited Co.), there are a plethora of reporting forms required to be filed with the 1040 concering the foreign corp.An FBAR for the foreign corp's bank account, if the US citizen/GC holder has signatory authority on the account, is also required to be filed by June 30, same as for personal accounts.

For those wishing to escape disclosure of their accounts by closing them, that means luigging around/protecting a bunch of cash. And, if they wish to bring that cash back to the US, if they are bringing in USD 10,000 or more, that cash is subject to confiscation if not declared upon entry and the source of it is disclosed on US Customs forms.

Like you, I am in compliance and also sleep better too. If one gets caught by the IRS for not disclosing accounts, paying any tax due from those accounts, etc., the penalties are indeed stiff, to say the least. This FATCA law is designed to catch those who have not been in compliance, despite several partial amnesty programs offered by the IRS to come clean.

Good post. You might add prison to it haha.

Yeah, no kidding. In fact, if the IRS discovers an unreported account and believes the money came from criminal activity, one could find themselves in Cross Bar Hotel...

[rattler]

Glad Im not American, Id put it all in the Wife's name if i was

[NeverSure]

Thanks for the link. It won't affect me. Every dime of income I have is generated in the US and already reported. SS, other income, already gets a form sent to IRS. There is no choice but to stay current on income taxes or they'd cut off my SS.

Besides, I sleep better, and if I ever need to return to the US for health reasons (Medicare) or others, I'm free to do so.

In reading, it appears that others may opt out of reporting in exchange for closing all Thai bank accounts.

It's not just the reporting of income and payment of taxes that they're after, the want to know about offshore bank accounts with an aggregate amount of USD 10,000 or more, even if that amount is met for even one day in a given year. This is reported using the FBAR form (Foreign Bank Account Reporting) that is filed separately from the 1040 and it is due by June 30 every calendar year for the prior year. The IRS just last year required yet another form (8938) to be filed with the 1040. The 8938 captures various foreign assets, including foreign bank accounts and actually is somewhat redundant with the FBAR info.

Also, if a US citizen/Green Card holder has at least 10% ownership of a foreign corp, trust, etc. (i.e. Thai Limited Co.), there are a plethora of reporting forms required to be filed with the 1040 concering the foreign corp.An FBAR for the foreign corp's bank account, if the US citizen/GC holder has signatory authority on the account, is also required to be filed by June 30, same as for personal accounts.

For those wishing to escape disclosure of their accounts by closing them, that means luigging around/protecting a bunch of cash. And, if they wish to bring that cash back to the US, if they are bringing in USD 10,000 or more, that cash is subject to confiscation if not declared upon entry and the source of it is disclosed on US Customs forms.

Like you, I am in compliance and also sleep better too. If one gets caught by the IRS for not disclosing accounts, paying any tax due from those accounts, etc., the penalties are indeed stiff, to say the least. This FATCA law is designed to catch those who have not been in compliance, despite several partial amnesty programs offered by the IRS to come clean.

Good post. You might add prison to it haha.

Yeah, no kidding. In fact, if the IRS discovers an unreported account and believes the money came from criminal activity, one could find themselves in Cross Bar Hotel...

Yeah, but not filing, or false filing is a criminal activity. Lots of people have gone to the big house for income tax evasion. That's federal prison. Of course if there isn't other criminal activity and conviction, it's a minimum security prison with inmates who aren't so bad. Still...

There's no parole in federal prison. I knew a guy who did 9 years. The average is probably more like 2 years, but he was a big operator.

The other problem is that there is no escaping the debt they figure you owe, and figure out of thin air. It's not dischargeable in bankruptcy, or forgiven after prison.

It's nice to have a clear conscience...

[lovetotravel]

Glad Im not American, Id put it all in the Wife's name if i was

European tax rates are much higher. It's just the US makes you pay no matter where you live on unearned income. My rate last year, on a middle level income, was about 22%. Pretty good.

Just be glad you are not from France, and are a high income person!!

http://finance.yahoo.com/blogs/daily-ticker/tax-rates-u-highest-world-183946787.html

http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

http://www.gfmag.com/tools/global-database/economic-data/12151-personal-income-tax-rates.html#axzz2Kva9MAzD

[thrilled]

If ya have A trusting mate,put it in her name.