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FATCA COMING TO THE PHILIPPINES - US CITIZENS GET READY!

Discussion in 'Banking - Investing - Finances' started by nwlivewire, Jul 18, 2015.

  1. nwlivewire

    nwlivewire DI Senior Member Showcase Reviewer Blood Donor Veteran Army Navy

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    The following information about FATCA WILL impact those Americans living in the Philippines.

    FATCA has already been implemented between many countries and the USA. Many, many US citizens living in those countries have more annual forms to fill out every year now or face severe penalties.

    Whether you are a retiree who is not generating income or whether you are working and generating income - it does not matter. As I understand FATCA, what matters is how many US Dollars are flowing into your foreign bank account(s) in any given fiscal year, the monetary amounts of deposits and withdrawals, and/or how many US dollars you may already have sitting in an established foreign bank account(s). Depending on your situation, you may be required to submit certain types of forms by a certain date each year or face BIG penalties (an example of one financial penalty is "failure to file").

    I'm still here in the States, and I spoke with my tax CPA lady. She is aware of the forms I will need to file every year, and if I remember correctly, she mentioned there are CUT-OFF DATES to get those forms back into the correct office that handles those forms. The cut-off dates are when THEY have to have to have the form(s) - NOT the date YOU mailed the form(s).

    I don't know much more detail than this as my tax lady said she will file the correct forms for me during the years I am living abroad. But I did want to get a "heads up" out there to all of you in the Philippines - just in case your situation may put you under having to file every year or face the music of failure to file.

    FATCA is coming to your neighborhood soon!

    Agreement Reached On Implementing FATCA In The Philippines | Live & Invest Overseas News

    V/R,
    nwlivewire
     
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    nwlivewire

    nwlivewire DI Senior Member Showcase Reviewer Blood Donor Veteran Army Navy

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    Here's another little article....

    Some Congress Members Want FATCA Exemption | Live & Invest Overseas News
     
  3. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    Sad that expats basically need a CPA just because they live overseas. I've always had one but it was only because they make me much more money than they cost me. Send that some are going to need one just to avoid big penalties.

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    nwlivewire

    nwlivewire DI Senior Member Showcase Reviewer Blood Donor Veteran Army Navy

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    Know what you mean.

    My CPA has always been worth the cost to me as she has saved me much more money than what she has ever charged me.

    But this is all changing in my world now that I am retired and no longer own a home and will not have any big debts to write down, etc.

    I figure the first year I'm away from the States over tax season, I'll keep her services just so I can make sure I'm FATCA and IRS compliant.

    If it's not too complicated, I might be able to do it myself the following year. But I'd rather be safe than sorry, so don't know yet how it's all going to work out.

    This is all just a lot more work (and expense) for us little fish while the big fish get away through the loopholes they have.

    Hope Congress amends this FATCA soon and streamlines the forms. That would help!

    SMH...

    nwlivewire
     
  5. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    This FATCA rule should only be if you have a foreign bank account....correct? I just got back to the US myself and will be talking to my CPA soon. I'll be sure and ask her about this nonsense.
     
  6. PatO

    PatO DI Forum Luminary Highly Rated Poster Showcase Reviewer Veteran Marines

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    FATCA rule applies if your Philippines bank accounts are US$50,000 or more and you have to file a US tax return..
     
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  7. jimf

    jimf DI Member Showcase Reviewer

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    Intersting to note that Rand Paul and others are suing Obama over this. Apparently Obama circumvented Congress (as usual) and implemented these procedures through Executive fiat.
    Paul contends this imposition on other countries is a treaty that should have been voted on by congress.
    The freedoms and liberties American's have lost under the tyrant Hussein are unprecedented.
     
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    nwlivewire

    nwlivewire DI Senior Member Showcase Reviewer Blood Donor Veteran Army Navy

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    Good idea Wrye83.

    I'm also wondering if any types of new forms need to be filled out if you DON'T have a foreign bank account, BUT say, you withdraw a certain amount of money from your US account and spend it or wire it to a third party outside the country (auto dealership)? I wonder if that triggers some kind of new reporting form?

    I have read some people who withdrew a chunk of money from their US account for a foreign property purchase (down payment on a house) got hit with extra forms.

    If you get a chance and remember, please let us know what your CPA has to say about this FATCA thing - and any other new anti-money laundering law.

    V/R,
    nwlivewire
     
  9. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    Good questions that I can't answer. I have had to sign anti-money laundering forms and provide pay stubs in the past for sending myself large sums of cash. I'm curious how companies like Xoom, Western Union and PayPal will be effected by these new laws. I don't think they are technically banks but with some of them you can set up foreign accounts.

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  10. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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