Moving Funds Back To Us.

[Girino]

You've been making money and paid no taxes anywhere?

Let's just assume these taxes were paid in a third country, and the OP was asking about "justifying" them coming from Argentina rather than Country X.

 

[sleslie23]

I am an Italian citizen and a LPR of the US, I file my taxes in the US, I filed my FBAR by June 2014 declaring I have accounts in Italy and my highest balance* in each of them in 2013.

*I don't know why they want that value, since it is pretty inaccurate: if you have 2 accounts and move 50k USD from account #1 to account #2 in a given year, you have to state 50k USD for both of them, but it doesn't mean you have 100k USD!

I was told that this is simply to let the IRS know that when you will be moving your funds from abroad to the US, there is nothing shady (this doesn't mean that you won't be asked how did you earn it).

Anyway, I am reading on this IRS page that I should have attached Form 8938 to my tax return. I filed my taxes with HR Block and they didn't mention FATCA nor attached that form to my tax return.
I am also reading that for you US citizens living abroad the thresholds are pretty high:

If you are a taxpayer living abroad you must file if:​

• You are filing a return other than a joint return and the total value of your specified foreign assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year; or
• You are filing a joint return and the value of your specified foreign asset is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year.

As a non-US citizen, I would bet you are fine. Not sure how these things apply to permanent residents.

I agree that according to what the IRS says, there shouldn't be any problem for us employees. But I've also read that IRS enforcement is arbitrary and in some cases, no amount is too small for their wrath.

Every year, the US becomes more and more like AR.

 

[Girino]

As a non-US citizen, I would bet you are fine. Not sure how these things apply to permanent residents.

The IRS is not so picky when it comes to tax collection! If you are a resident of the US, you must pay your taxes in the US. Being a US resident and not filing taxes or declaring yourself as a living abroad on your tax return can make you lose your green card.

For US citizen, it is different: if you are a US citizen and spend most of the year abroad, you can file taxes as a non resident or partial resident.

However, bottom line is: you must file a tax return in the US if you are a LPR or US citizen, but as a citizen you have the option to pay less if you claim to live abroad (this implies that you pay your taxes elsewhere, of course).
I personally know freelancers who are US citizen but have been living abroad for a long time, but they keep paying taxes in the US because it is cheaper than in their current country!
Of course, this is not okay in their current country, but they keep off the radar, and as someone mentioned in our thread, being "in grey" is better than being "in black"

 

[sleslie23]

For US citizen, it is different: if you are a US citizen and spend most of the year abroad, you can file taxes as a non resident or partial resident.

However, bottom line is: you must file a tax return in the US if you are a LPR or US citizen, but as a citizen you have the option to pay less if you claim to live abroad (this implies that you pay your taxes elsewhere, of course).
I personally know freelancers who are US citizen but have been living abroad for a long time, but they keep paying taxes in the US because it is cheaper than in their current country!
Of course, this is not okay in their current country, but they keep off the radar, and as someone mentioned in our thread, being "in grey" is better than being "in black"

Sure, all this is fine and dandy. The thing that is changing is FATCA. As a non-citizen, you don't have any problems, but if you are really interested look into it more. It complicates life for US expates.

 

[hannstew]

How many people on this board are making upwards of US$90K per year?

Maybe more than you think..

 

[hannstew]

How many people on this board are making upwards of US$90K per year?

More than you think..

 

[nlaruccia]

How many people on this board are making upwards of US$90K per year?

Maybe more than you think..

Probably not many here make more than $90K per year in Buenos Aires. But there are those that are returning home and selling their houses, apartments or cars and want to take the money back home. That's not in the category of foreign earned income that you declare to the IRS.

 

[sleslie23]

The IRS is not so picky when it comes to tax collection! If you are a resident of the US, you must pay your taxes in the US. Being a US resident and not filing taxes or declaring yourself as a living abroad on your tax return can make you lose your green card.

For US citizen, it is different: if you are a US citizen and spend most of the year abroad, you can file taxes as a non resident or partial resident.

However, bottom line is: you must file a tax return in the US if you are a LPR or US citizen, but as a citizen you have the option to pay less if you claim to live abroad (this implies that you pay your taxes elsewhere, of course).
I personally know freelancers who are US citizen but have been living abroad for a long time, but they keep paying taxes in the US because it is cheaper than in their current country!
Of course, this is not okay in their current country, but they keep off the radar, and as someone mentioned in our thread, being "in grey" is better than being "in black"

Amiga, I understand and agree with everything you are saying. I was a tax-paying expat for almost a decade. I don't think I explained my self well earlier, but what has changed is FACTA:

http://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act

The key phrase is: "requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their U.S. clients."

As I mentioned before, this is why I am not working in Uruguay. My current employer was unable to open a bank account to deposit my salary. Despite my protestation that I could open an account at BROU with my US passport and AR DNI (I know people who have done it recently), the company balked at hiring me in Uruguay because they couldn't pay me.

If you really care, I can point you to links to other US expat woes related to this. It's not just about paying taxes. It's about reporting ALL foreign assets and about the IRS leaning on foreign banks to report the assets of all US citizens. Rather than submit to IRS intrusion, many banks are refusing to open accounts for US citizens and closing existing accounts (at least in UR).

I don't think this has been an issue in AR.

EDIT: I'm not an accountant, nor am I non-compliant with my US tax obligations. I only heard of FACTA after a job in Uruguay fell through because of the bank account situation.

 

[Girino]

The key phrase is: "requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their U.S. clients."

To this regard, in Italy, when you are opening a bank account your are asked if you are a US person, i.e. a US citizen of US resident.

Most banks in Italy doesn't let you open an account if you are not a resident of Italy because they don't want to deal with the paperwork associated to your "special" situation - i.e. they should not withdraw the Italian taxes from your balance, they should justifying to the Italian equivalent of the IRS why the do so, produce paperwork to demonstrate that you are not resident in Italy and that the corresponding taxes have been paid abroad - all of this with no return for the bank.

So I don't think it is all FATCA's fault.

 

[Sleuth]

Probably not many here make more than $90K per year in Buenos Aires. But there are those that are returning home and selling their houses, apartments or cars and want to take the money back home. That's not in the category of foreign earned income that you declare to the IRS.

This would probably fall under capital gains taxes then. Argentina does not have one, but the US does. If you bought an apartment for $100K and sell it for $125K, you would be liable for taxes on the $25K in the US.