Copyright (c) 2009 Nick Hodges
The IRS announced the resolution of IR-2009-075 on August 19, 2009, forever changing the international banking and investing practices of US Expatriates!
Aggressive IRS pressure caused the multinational brokerage firm UBS and the Swiss government to cave in to account disclosure demands. The result of this victory is much worse than you think: not only will UBS be providing the IRS with the names of Americans that hold Swiss accounts at UBS, but the Swiss Government agreed to process additional IRS requests relating to OTHER Swiss banks. This is an international victory for the IRS over another country's sovereign rights. It also sends a clear signal to US Expatriates that the IRS is intent on finding your money abroad.
So your money isn't hidden in a Swiss bank? If the IRS can get the Swiss to break their bank secrecy laws, what country do you think they will go after next?
So you've been filing a tax return? Did you know that the Report of Foreign Bank and Financial Accounts (FBAR) form is NOT part of your tax return? Did you know that it isn't even filed with the IRS, but the US Treasury?
This unprecedented development should cause US Expatriates to review ALL their banking and investing practices - immediately. If you have had assets hidden overseas, thinking that a country's sovereign rights will protect you, think again.
The IRS wants YOUR money, and is focused on discovering it. The IRS has stated that ALL information provided by the Swiss will be examined for ALL potential civil and criminal tax violations. US Expats that did not report bank or investment accounts overseas when required will receive a minimum $10,000 statutory penalty. If your name shows up on one of these lists and you failed to file an FBAR with the US Treasury, you WILL BE FINED. The question is, just how much?
In IRS terminology, failure to file an FBAR means that your total penalty can be up to 50% of the value in the foreign account for EACH year that you did not file the proper FBAR form with the US Treasury. On an account valued at $100,000.00, the potential penalty could be as high as $50,000.00 for EACH year that the account was undisclosed. If you failed to disclose the account for two years or more, you could easily owe the IRS MORE in penalties than your account was worth.
I stated in one of my last articles that the current US Administration views the US Expatriate community as a big piggy bank to help fund the growing government deficit. This victory by the IRS confirms my belief that they are after more of the US Expatriate's money: YOUR MONEY.
So, how do you as a US Expatriate keep up with all the changing requirements? How do you make sure that you are complying with ALL the US filing requirements?
The best way to accomplish this is to work with an experienced advisor that will focus on keeping you out of the scrutiny of the IRS by keeping your activities well above-board and within the law. The tone of current regulatory changes is so far-reaching, that your advisor needs to understand more than just the IRS Tax Code, they need to be well-versed in the other nuances that govern how expats handle their entire financial world.
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Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help
expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======>
ExPatCFO.com 
