Tuesdays With Morey - Tax Tips®

Many of today’s accountants are not familiar with the tax rules and regulations of owning foreign assets, foreign corporations or foreign bank accounts. Through the Fair and Accurate Credit Transactions Act (FACTA), companies and individuals are required to voluntarily disclose any foreign assets. In addition, if a foreign held account contains more than $10,000, a Schedule B must be prepared at tax time to alert the IRS of its existence. Some people may believe moving money or other assets, like gold and silver, offshore without paying a withholding tax is legal, but it’s not.   Key Takeaways: [1:11] What exactly is FACTA and how does it affect foreign banks? [4:20] US citizens should make their future financial plans while still in the US, before moving to a foreign country. [5:55] Even Swiss banks had to turn over the names of account holders before voluntary disclosure measures were put in place. [7:40] Many accountants don’t know foreign account holders must file a Schedule B, if there is more than $10,0