FT: US fines loom for offshore account holders

[sweetheart]

By Kevin Allison in New York
Published: June 29 2005 22:04 | Last updated: June 29 2005 22:04

US expatriates and many foreigners living in the US risk penalties of up to $10,000 if they fail to report details of overseas bank and financial accounts to the US Treasury by Thursday.

Any “US person” who held more than $10,000 (€8,269, £5,532) offshore in 2004 whether in bank accounts, stock funds, trusts and other investment accounts is expected to have completed an obscure form known as a TDF 90-22.1.

Taxpayers who fail to comply face a $10,000 fine and a maximum civil penalty of $100,000 or 50 per cent of the value of the offshore account, experts warn.

Accountants in the US and abroad say they have been working with clients but admit that thousands could be caught out because they remain unaware of their obligation.
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[wakeme2008]

1. Does this mean * and Dickie's special off-shore accounts

should have been reported... Just asking :rofl:

[sweetheart]

2. Frankly, it punishes expats

In theory, its about controlling tax liability, but the form is not
from the IRS, rather the treasury, because they're trying to screw
americans abroad.

Consider that if you live abroad long term, you of course will have a
pension account and other financial basics just like you would have
"on-shore"... and this law is just another crap bullshit invasion in
to privacy of US citizens.

As well, 7 million americans living and working outside the US process
a good portion of their finances abroad... so it suggests that if you
EVER accumulate more than 10K, which is just over 5K pounds, they
threaten to expropriate it... this happens with students and stuff,
where a years tuition can easily amount to 5K.... and as the article
says, most people don't know about this... heck.. its the first i heard
about it myself.

[Dover]

3. Hadn't thought about that. And I guess that the $10,000 fine is peanuts

to the really big violaters with offshore accounts. Just the cost of doing business, if they're even discovered to begin with.

[2Design]

4. and what about accenture and other businesses that pay no

taxes and get government funding