New U.S. Tax Law - does it affect people in Thailand?

[Trvlr 50]

Extract:

"According to the Journal, the surge in expatriations seems to be driven by the upcoming implementation of the Foreign Account Tax Compliance Act (FATCA), a 2010 law that forces foreign financial institutions to disclose more information to the IRS about Americans' accounts and investments. Starting in 2014, foreign financial institutions will have to tell the IRS about income accruing to American clients (or businesses owned by Americans), and they'll have to withhold American income tax as appropriate."

 

Has anyone looked into this in any detail? I think the tax law as it existed required reporting bank accounts only if the account had more than $10000. Does that still hold?

 

 

Link to full story: http://finance.yahoo.com/news/heres-law-thats-driving-record-193226792.html

[davebuczek 21]

Extract:

"According to the Journal, the surge in expatriations seems to be driven by the upcoming implementation of the Foreign Account Tax Compliance Act (FATCA), a 2010 law that forces foreign financial institutions to disclose more information to the IRS about Americans' accounts and investments. Starting in 2014, foreign financial institutions will have to tell the IRS about income accruing to American clients (or businesses owned by Americans), and they'll have to withhold American income tax as appropriate."

 

Has anyone looked into this in any detail? I think the tax law as it existed required reporting bank accounts only if the account had more than $10000. Does that still hold?

 

 

Link to full story: http://finance.yahoo.com/news/heres-law-thats-driving-record-193226792.html

 

Expats have had to report if they have more thatn $10,000 in foreign bank accounts for a few years now. In 2014 the foreign banks will have to submit information about US citizens or companies that hold money in their bank. If they don't comply, then I believe that any remittances to that foreign bank will have amounts withheld.

 

It really shouldn't have an impact on the little guy as long as you report properly. They are after the big guys that are holding millions in foregin bank accounts and haven't paid taxes on the money earned.

[bigmick 839]

How does one avoid this happening to them if they are an expat - working and living abroad.

[davebuczek 21]

How does one avoid this happening to them if they are an expat - working and living abroad.

 

The only way is to keep less than $10,000 in foregin bank accounts (total, not individually). Below is a links to the form you should file.

 

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-%28FBAR%29

 

http://www.irs.gov/pub/irs-prior/f90221--2012.pdf

[bigmick 839]

Does this only apply to US citizens

[MM 6,562]

Does this only apply to US citizens

 

Yes. You're next!

 

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[bigmick 839]

Yes. You're next!

 

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Im lucky im Irish lol

[tom21 19]

Does this only apply to US citizens

Yes the US only taxes US citizens. They screw everyone else

[Fatboyfat 361]

Yes. You're next!

 

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Probably said in jest, but I have heard it is an action being investigated by the incumbant UK government. Although the prime directive appears to be to hit expats and "quasi-expats" with NHS restrictions/prohibitions. Unlikely to happen though unless Tories are voted in for a second term.

[jacko 8,578]

Probably said in jest, but I have heard it is an action being investigated by the incumbant UK government. Although the prime directive appears to be to hit expats and "quasi-expats" with NHS restrictions/prohibitions. Unlikely to happen though unless Tories are voted in for a second term.

I notice they upped the NHS class 3 payments, both in amount and pension qualifying payments.

To be honest I worry more about the banks doing a bail-in!