Are you a US citizen with a foreign bank account and are concerned that the IRS might have your info? 2

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Hello,

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The United States passed the FATCA law. It became effective on ‎March 18, 2010.

Canadian banks (also known as Foreign Financial Institutions – or FFIs) have been checking their existing accounts for “indicia” that their customers might be US citizens, until July 1st 2014 when it transmitted the data of such US citizens to the CRA. They would then report the account numbers, balances, names, addresses, and U.S. identification numbers of their customers suspected as being US citizens. The CRA has since transferred the data to the IRS.

The IRS’ stated goal is use that information to ensure that taxpayers are compliant with filing requirements, ostensibly form 8938.

Fortunately, the IRS also has programs in place to allow people to get into compliance.
The most advantageous of these programs being the Streamlined Foreign Offshore procedures. Under the Streamlined Foreign Offshore procedures, one can avoid all otherwise applicable penalties. The main criterions to be eligible for this program is 1) to have spent 330 days outside the Us in any one of the past 3 years and 2) to not have already been contacted by the IRS, so act fast.

I have prepared over 20 such packages in 2015 alone. The regular package includes the past 3 years of tax return (and 6 years of bank account information) but I have also prepared packages including 5 years of tax returns in the context of people surrendering US citizenship.

Don’t take my word for it – what customers are saying:

Mr. Wagner has prepared for us some very complicated forms required by the IRS. He is prompt, efficient, extremely knowledgeable, and a pleasure to deal with. I would highly recommend him to anyone requiring an experienced and professional tax preparer.

M.Ginsburg, University professor


Olivier is very professional and always on time with our taxes.

Ahmady, Military Contractor

Mr. Wagner was very professional, knowledgeable and extremely easy to work with. He has helped me resolve an extremely stressful situation and I am sincerely grateful for his hard work. Merci !

Fitzpatrick, Software Developer

Efficient and professional

Ryan, Project Manager

1040 Abroad was very quick to respond to all of my emails. Olivier answered all my questions—this is my first year living overseas and dealing with my US taxes from afar, so I am especially grateful for the fast turnaround. Thank you!

Mueller, Professor

2 thoughts on “Are you a US citizen with a foreign bank account and are concerned that the IRS might have your info?

  1. Reply Scott Michaelis Oct 26,2015 8:52 pm

    I have been living in the philippines for over 4 years and living off my retirement SSi for that time..I have not been contacted by the IRS and have not filed anything with them since the last year that I lived in the USA. I transfer my 1185 usd dollars here every month from a usa bank. do I have any obligations to the IRS? I have inquired several times with friends still living there and have been told my situation is ok, but, one never knows when it comes to the IRS!!!

    • Reply 1040abroad Oct 27,2015 7:26 am

      Hello,

      It sounds like you never had more than $10,000 in a foreign bank account, hence, you would not have to file an FBAR report (Fincen 114) or the FATCA form (form 8938). None of the potential $10,000 penalty would apply to you.
      Since your income is more than $10,000, you would have had to file a tax return. My estimate is that you wouldn’t owe anything.

      Feel free to contact me at owagner@taxsamurai.com if you have any follow up question.

      Best,
      Olivier Wagner, CPA (The Tax Samurai)

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