Now there are only a few people in the world that will understand what I am talking about (the rest of the USA citizens who have to file a list of their foreign bank accounts), but perhaps the rest of the world should be aware as if the USA can do it, what's to stop the other countries from decided to do the same?
For your edification: FBAR = Foreign Bank Account Report
Disclaimer: I like
my IRS enrolled agent who is not only efficient, but also actually nice so the
following is no reflection upon S!
First one gathers
the materials, makes the excel tables, pdfs (new vocabulary) the various pieces
of tax “proofs” for mortgages, bank statements, charitable deductions, salary
statement, W-9s, and all the other assorted junk that one apparently needs to
survive in this world; secondly one forwards all this (the past couple of years
by e-mail, which means color coding bits and pieces to make sure that all of it
was actually transferred to one’s tax agent); then one awaits his or her input,
requests for additional information or further “proofs”;
Thirdly one
proceeds to go through every single bank account, life insurance policy or
other investment to make sure that one has declared the highest amount in the
365 days of the year, cause if you make a mistake you will not only be fined
$10’000.00 but will pay a penalty that can easily take the whole account (now
in theory you don’t have to do this for anything under $10’000 but if it was
that one year and not the next year, you’d better declare it anyway unless you
can prove that you closed that account – cause who knows but what that might
not be a “criminal” offense) and transfer those results to your IRS enrolled
agent so that he or she can establish your FBARs.
Then the nightmare
starts:
…” Please review the form to ensure that all your foreign
accounts (including pension and life insurance) in which you have either
financial interest or signature authority (or both) have been reported.
Please contact us if there are any accounts that should be indicated on this
form which are not listed.
- Please
save the attached file on your computer.
- Please
open the pdf form from your computer, then click first on the ‘Sign the Form’
button.
- Please
then click on the ‘Save’ button to save the form to your computer.
- After the
form has been saved you should click on the ‘Ready to File’ button which
will redirect you to the BSA efiling website.
- Once at
the BSA efiling website you will need to enter your name and email address
before browsing to the location where you saved the form on your
computer. Once you have clicked on the button to submit the form you will
automatically receive a confirmation of the submission; this confirmation
will also be sent to you via email. For further assistance with this
process please visit the following website - http://bsaefiling.fincen.treas.gov. …”
Now you know that you have provided your tax agent
with all the information, in my case nothing (but the amounts – lower, much
lower due to expenses renovating etc.) has changed, still you have a ball in
the bottom of your stomach, you live in fear of missing something – be it even
one penny – because if you do, the IRS isn’t going to believe you, or if by
some totally unforeseeable miracle they do, you are still going to be paying a
fine and a penalty and risk finding yourself on the black list the next time
you visit your brother or sister in the USA, yet you still panic; you still
feel like a criminal.
Nor will I go into the other potential negative: as
this FBAR report must be filed on-line with all of not only your personal
details, i.e. name, address, etc. but also with your social security number and
all the numbers of said reported accounts of personal identity theft is a very
real possibility.
Well, the hard part is done in that I have read and
digested what I need to do – on with the FBAR filing – then I’ll only need to
file my actual tax declaration – two different spots – sending it registered
with a request for notification of receipt or I will find myself accused of not
having turned it in at all: ask my older son who one year was told that he
hadn’t filed although I had paid the tax and the IRS had cashed the check.
Turned out they had simply created another him by spelling his last name wrong:
they swore that it couldn’t happen as there would be a duplicate for his Social
Security number, but it took six months to find the one person capable of
actually finding the second and totally invented name!
And then Americans think that we expats should be
grateful for the privilege of being American – or course we are all cheats as
there is something inherently wrong about someone falling in love and leaving
the country of their birth, or about someone working overseas for an American
company. The land of the free and the brave is no longer free and those of us
living abroad are no longer brave: we cower under the burden of trying to
comply with rules and laws that don’t exist anywhere else in the world, i.e.
citizen-based taxation. OK not entirely true, Eritrea also imposes their
citizens – some comparison.
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