Has any U.S. citizen here been contacted by their bank to sign the FATCA compliance document by Dec. 31? I am researching this now to understand the tax consequence, if any. http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA
I can now summarize the FATCA requirement. If you have $50,000 or more in a foreign bank, dollar and peso combined, bank branches combined, AND if you are required to submit a U.S. tax return for 2014, you must comply. Attach Form 8938 to the annual income tax return (usually Form 1040) Note: From experience I can tell you that if you get into the sh*t with the U.S. IRS, they can lock our social security.
Well you US members, this is where I will say once again, it is soooooooo good to be a Brit. my goodness What a performance you Guys have to go through, You work all your life to be Hounded by the freaking Tax man, Even in Retirement. ( those at work still will forgive I know) Merry Xmas all you Guys and Gals. Cousins across the pond with so differing Administrations.
Maybe, but the UK Pound on a downward spiral vs. the U.S. dollar. Merry Christmas to all http://www.x-rates.com/graph/?from=GBP
Pat, 04 peso down is not a valid Argument. it has stayed around 69 to 72 peso for quite some time now, Good enough for most of us. The Dollar is somewhat immaterial to us. Let me explain something. We from the UK do not ever have to explain what we have in the Bank. All we have to do is inform the IRS the amount of Interest we have earned each year, This we do by Certification from a certified Accountants (Notarized) That way way they Know exactly what we have. Yes and a Merry Xmas to you too my friend. Pat, We know that the US people are not happy about this FACTA but it is, what it is. a US Thing:oops: Jackhttp://www.google.com/public/style_emoticons/default/santa%20laugh.gif
Another Filipina-American asked my wife for help, she received a letter yesterday from a local bank threatening to close her account for CAPCA non-compliance. She's a simple lady and has never touched a computer or seen the Internet, she's in a panic about losing their savings. Her husband suffered a stroke a few years ago during a visit here, and is now in a vegetative state at home.She shares 12-hour shifts with a hired nurse caring for him and keeping him nourished via a feeding tube. She's been frugal with their Social Security benefits, saving for his frequent hospital confinements and tongs for Immigration, plus for college for their 12 year old child. The bank balance exceeded $10K some time ago. I once did my own yearly taxes but no recent problems like a fat bank account. If anyone here has experience here your info would be welcomed, we can't refuse to help her if we can.
That is a tough situation. Does she have a general power of attorney over her husband? If not, she REALLY should.
We met her at the bank, they agreed to provide her the details they must report to the US Treasury by April 15. Best I can determine, by June 30 she must file a "Report of Foreign Bank and Financial Accounts (FBAR) for the year 2014, which only can be done online using the BSA E-Filing System. I also advised her to file an income tax return for 2014 including a Form 8938 to show that she is not running a business and has only pension income. In the States there apparently are commercial FBAR Filers, but it would probably be easier to help her do it from here. She'll have to do it again next year for 2015, by then we hope to help her open a US bank account for direct deposit of their Social Security benefits, to keep dollars here under $10K. This is a nightmare for people like her with only threats and no help available. I read that other countries like this idea so much they may also inflict similar systems on their expats.
If their only income is social security, they probably do not have to file an income tax return and do not have to attach the CAPCA form to a tax return. However, the banks here were directed to have each U.S. citizen sign their CAPCA document at the bank, if the total amount in the local bank is $50,000 or more, not $10,000, as I was told by our bank manager.
