Form Americans Must File If They Have A Thai Bank Account

[Guest Astrrro]

I believe that GB and/or others have posted about a form Americans must file by June 30th if they have an account greater than 10K USD. Can;t find it. Does nyone have info or a link?

[Guest GaySacGuy]

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

 

This is the form required if you had over $10,000 dollars in Foreign Banks during 2008. You can fill in data, and then print or send the form. Don't use last years form, as it is out of date. This is the form to use after Dec. 2008.

[Bob]

Other than writing down the info and form number (TDF 90-22.1) from the post, I know nothing else.

 

I filed my US tax return in January just before starting the current sojourn here in LOS. I did not report any income from my Thai account although there was some (nothing to write home about....).

And I didn't do that because I simply forgot about it (we, of course, don't get 1099's from Thai bank accounts and all you would get is something marked in your passbook when you update it - although I suppose I could have looked online too).

 

I'm doubtful that I'll ever get caught for this - and the interest income wasn't that much; however, if I proceed to file the disclosure form, I am concerned (a little) that I'll trigger a letter from the IRS asking me why I didn't report the income from the account. By filing the TDF 90-22.1, I'll certainly lose the "hell, I didn't know about that" defense and I don't want to waste the time and expense of amending the return I filed in January.

 

Up to you as to what you do.....I'm not sure at the moment what I'll do.

 

Edit: I see GSG posted just ahead of me - and thanks, GSG, for the link. I've copied the form in case I decide to actually file it.

[mahjongguy]

..I'm not sure at the moment what I'll do.

 

The penalty for failing to report that 0.50% earned interest on your 1040 is peanuts, no more than the cost of an evening's entertainment. It's a common oversight and it's no big deal, especially since the IRS is unlikely to bother.

 

On the other hand, the penalty for failing to submit the banking form by June 30th is staggering. A huge fine and the possibility of a few years in Leavenworth.

 

I hope that helps you make up your mind.

 

The IRS is not looking to snag 20% of that $80 interest you earned. They are actively seeking money in offshore accounts that is involved in money laundering, drugs, and terrorism, or just large amounts earning peculiar gains.

[Guest GaySacGuy]

Other than writing down the info and form number (TDF 90-22.1) from the post, I know nothing else.

 

 

Don't miss the forest for the trees. If you had over $10,000 total at any one time in foreigh bank accounts, file the form before June 30. As another poster said...the IRS interest is peanuts, but the failure to report the offshore accounts in BIG..and the homeland security is looking hard for the offshore accounts that aren't being reported.

[2lz2p]

Don't miss the forest for the trees. If you had over $10,000 total at any one time in foreigh bank accounts, file the form before June 30. As another poster said...the IRS interest is peanuts, but the failure to report the offshore accounts in BIG..and the homeland security is looking hard for the offshore accounts that aren't being reported.

 

The following was prepared to be put on the Pattaya City Expat Club web site:

 

USA CITIZENS - ARE YOU REQUIRED TO REPORT YOUR FOREIGN BANK ACCOUNT TO THE US TREASURY DEPARTMENT?

 

Questions 7a and 7b on Schedule B, IRS Form 1040, US Income Tax return has a place to enter information about whether you have control over foreign bank account(s) during the calendar year that totaled $10,000 or more at any time during the year. If the answer is 'yes,' the instructions note that you are required to file form F90-TD22.1 (separately from the income tax return).

 

However, many USA Citizens, especially retiree Expats, do not file a US Income Tax return and thus, are not aware of this reporting requirement. Any retiree or person married to a Thai that uses the 800,000 or 400,000 Baht in a Thai bank to qualify for their Thai visa would be subject to this reporting requirement.

 

US law (money laundering) requires that US person complete and file this information report with the US Treasury if at any time during the calendar year they had an aggregate of $10,000 US dollars or equivalent in foreign bank account(s). So, even if you had less than $10,000 in two or more foreign banks, but the total of all these accounts exceed $10,000 at any time during the calendar year, you would be required to file the report.

 

For example, if on June 8, 2008, a US Citizen has control over a Bangkok Bank Account with 250,000 Baht balance ($7,200.46) and a Hong Kong Bank account with a balance of 22,100 Hong Kong Dollars ($2,851.64), the aggregate amount would be $10,052.10, thus triggering the reporting requirement. The exchange rate to be used for foreign currency conversion is the exchange rate on the last day of the calendar year or, in the case of the example, December 31, 2008. On that date, the Thai Baht rate was 34.72 and the Hong Kong Dollar rate was 7.7499 (source

www.x-rates.com/d/THB/USD/data120.html

)

 

Note: A US Person includes a citizen or resident of the United States, or a person in and doing business in the United States. The term "person" includes individuals and all forms of business entities, trusts, and estates.

 

You can download Form F 90- TD 22.1, Report of Foreign Bank and Financial Accounts, for calendar year 2008 from at

www.irs.gov/pub/irs-pdf/f90221.pdf

. The report is required to be filed by June 30, 2009 for calendar year 2008. If you filed for an extension in paying your US income tax, it does not extend the filing date for this form. Visit

www.irs.gov/businesses/small/article/0,,id=148845,00.html

for IRS answers to frequently asked questions about the report.

 

The Privacy Act Notice on the form states in part:

Disclosure of this information is mandatory. Civil and criminal penalties, including in certain circumstances a fine of not more than $500,000 and imprisonment of not more than five years are provided for failure to file a report , supply information, and for filing a false or fraudulent report.

Frequently asked questions and answers include the following:

 

What is the statute of limitations for assessing civil penalties for violations of the FBAR requirements

?

Civil penalties can be assessed anytime up to six years after the date of the violation.

 

What happens if an account holder is required to file an FBAR and fails to do so?

Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties, or both. . .