Guest Post: Don't Forget - The Deadline To Come Clean Is This Thursday

Tyler Durden's picture

Submitted by Simon Black of Sovereign Man

Don't Forget: The Deadline To Come Clean Is This Thursday

Are you a US taxpayer? Do you have at least $10,000 in overseas
accounts? It’s time to put those annual disclosure statements in the
mail… and quickly. Let me explain.

Each year by June 30th, US taxpayers are obliged to report all
foreign financial accounts in which they have either a beneficial
interest or signature authority, so long as the aggregate value of all
the accounts exceeds $10,000 at any time during the calendar year. The
form is known as the FBAR.

You must accurately disclose the highest value of each account during
the previous calendar year on your FBAR… so make sure you go back
through your bank and brokerage statements to check.

Let me give you a few examples:

Iggy Noramus is a US citizen who keeps all of his money in the United
States. He happily watches the value of his dollars depreciate and
completely ignores important warning signs like the Treasury Department
confiscating pension funds to make up for their budget shortfalls. Iggy
does not need to file the FBAR.

Guy Sharpe is also a US citizen who took action in 2010 to set up a
foreign bank account in Hong Kong after reading an issue of Sovereign
Man: Confidential.  He only funded the account with $1,000, figuring
that he just wanted to have an overseas account ready in an emergency.
Guy doesn’t need to file the FBAR either.

Dee Pockets is a US citizen with four overseas accounts. One personal
account in Switzerland has just over $1 million, one business account
in Singapore has $5 million, one small account in Belize has just $50,
and a Cayman brokerage has $250,000. Dee must file the FBAR and declare
each of the four accounts.

Goldie Bugg is another US taxpayer who established an account in 2010
with GoldMoney; she opened the account with only $8,000 at the
beginning of the year, but the market value of her gold peaked at
$11,500 during 2010. Goldie must file an FBAR as well.

The gold ruling is new this year, and we first reported this back in
March. The Financial Crimes Enforcement Division (FinCEN) made it quite
clear that any gold held in the custody of another firm or individual
constituted a foreign financial account and needs to be reported on the
FBAR.

Frankly I’m starting to believe that this was part of a larger
movement to recast gold as a ‘financial instrument,’ subjecting precious
metals to regulation, control, and potential confiscation.

Given what we’re seeing now with so many brokerages cutting off their
OTC gold contracts, this hypothesis is becoming more credible. I’ll
have more on this working theory in another letter.

For now, make sure that you get your FBAR’s filed in time. The
Treasury Department changed its language in the instructions this year,
spelling out that they expect to receive the report by June 30th, which
is this coming Thursday.

The form
only takes a few minutes to fill out (assuming you have the
information), and the instructions are self-explanatory. Consult your
tax advisor with any questions.

If you don’t have a foreign bank account yet, you really ought to consider it for four key reasons:

1) A foreign bank account often makes it much easier to diversify out
of the dollar. If you believe that, excluding some short-term rallies,
the dollar’s long-term trend is lower, you can easily hold foreign
currencies in a foreign account.

2) Foreign banks are often much stronger, not these quasi-zombie
banks propped up with deceptive accounting rules and public funds we see
in the west. Singapore, for example, has never had a banking failure,
ever. I’ve even recommended one bank in SMC that keeps 100% of deposits
in cash equivalents.

3) Banks overseas are typically much more innovative. In the west,
banks think they’re being innovative when they get a Twitter account. In
Asia, you can sign up for the next big IPO from an ATM. You can send a
worldwide wire transfer from your mobile. You can denominate accounts in
different currencies and precious metals.

4) Foreign banks are not controlled by your government. Get sideways
with a bureaucrat in your home country and see what happens to your
assets; there are dozens of agencies and courts out there, whether at
the state, local, or federal level, that can freeze you out of your own
money with a single phone call.

They can’t do that if your money is offshore. Capital controls, fear
and intimidation tactics, frivolous lawsuits, etc. have limited impact
on offshore accounts. It’s often possible to apply through the mail, and
I’ve seen some banks with account minimums as low as $0.

If you have any savings at all, I strongly urge you to consider
moving at least a portion of it overseas for the reasons I outlined
above.

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johngaltfla's picture

AKA:

Under the HIRE Act, Capital Controls.

Guy Fawkes Mulder's picture

http://www.youtube.com/watch?v=fhx2KjaASh0#at=3m29s

I am afraid... that there is a problem, Mr. Jung. The banks have gone through a change. Nationalization. I am afraid that... your funds have been appropriated by the government. Please forgive me. My apologies.

$30M gone.

Hugh G Rection's picture

The form is known as the FBAR.

 

You forgot the U.  It should be FUBAR

flacon's picture

Can we claim gold @$42.22/ounce like THEY do? In that case I have less than $10,000 worth of gold. 

Popo's picture

Dear US Citizen:

We own your ass.  You belong to us.  Do you understand that, serf?   Even if you live in another country all year long,  you still have to pay US taxes.    If you want to abandon your US citizenship for tax purposes,  the answer is "no":  We'll keep collecting taxes from you for an additional 10 years after you give up your US passport.  Why?  Because you are our bitch.  That's why.    

If you place money in a foreign bank,  you need to report back to us and tell us what you're doing even if it's outside of our jurisdiction.   In short:  There is nothing you can do to escape financial bondage.

Why?  Because we own your ass,  serf.   You think you are free?  Hahahaha.   You're property.   Your sole purpose in this world is generating tax revenue to feed the machine.   No matter where you run,  no matter what you do:  We will track you down and make you pay, slave.     Yes,  we know that citizens of other countries like England,  France, Japan,  Brazil, etc.  don't need to pay taxes to their respective governments if they live abroad.  But those people aren't 'property' like you are, serf.   You're an American and that means you're ours.   No matter where you live and no matter what you do,  we still own you and your earnings are ours.

Is that understood?  Oh, and if you resist we will imprison you.  And if you think you can "run out the clock" under the statute-of-limitations,  surprise!  There is no statute of limitations on tax debts.  We own you forever, bitch.

Thank you for your time,   

The Internal Revenue Service

molecool's picture

Actually, giving up one's U.S. citizenship is procedural if you are up to date with your IRS filings. All you have to do is to relocate, acquire a 2nd citizenship (or are lucky enough to already have one) and then to officially denounce your U.S. citizenship at a local consulate. It's all explained here:

http://www.taxmeless.com/USCitizenRenounce.htm

tip e. canoe's picture

that actually is a very interesting legal argument to make, if one must.

flacon's picture

Can we claim gold @$42.22/ounce like THEY do? In that case I have less than $10,000 worth of gold. 

lincolnsteffens's picture

Never noticed your nome de plume before. Far fucking out!

 

Pladizow's picture

Fuck these US Gov IRS Nazi's!

Popo's picture

Simon Black ... Working for Uncle Sam? This article seems like something from the IRS itself.

The whole article makes it seem like the reason you put money offshore is for dollar stability. Bullshit! The reason you put money offshore is to keep Uncle Sam's grubby fingers off it.

Signing a FuBAR defeats the entire purpose of offshore accounts.

My suspicion of Simon grows...

FunkyMonkeyBoy's picture

U.S. citizens will put up with anything. The past 3 years have PROVEN that.

The average U.S. citizen must have a steel re-inforced asshole.

nonclaim's picture

The idea is that you should provide evidence against yourself on your tax evasion strategies. So yes, kind of a joke and another lawful right flushed down the sewage pipe.

JohnG's picture

Nope.  FBAR's are real.

 

Popo's picture

And if you accidentally forget to provide the US government with evidence against yourself?

Bastiat's picture

"The gold ruling is new this year, and we first reported this back in March. The Financial Crimes Enforcement Division (FinCEN) made it quite clear that any gold held in the custody of another firm or individual constituted a foreign financial account and needs to be reported on the FBAR."

So, as written, that would include gold held in a private vault in the US? 

 

 

Bastiat's picture

It must mean foreign.  But it's interesting that what the IRS consideres a "collectible" is now consider a financial asset.  What about silver?

Silver Kiwi's picture

what about the gold & silver under the bed??

RockyRacoon's picture

Not unless your Serta has a charter.

buzzsaw99's picture

telling the usa gubbermint about assets abroad defeats the purpose of having them there in the first place imo. corporations hold shitloads of cash abroad, nobody fvkks with them about it why should i play by their fukktarted rules?

Widowmaker's picture

You bet your ass, this is exactly what is going on.

See, when Uncle Sam knows your privates, they sell that information, without your consent, and without you getting any part of that action.  Total ripoff by USA Inc.

TBTF corporations don't have to follow any rules related to money or transparency/disclosure or even truth. 

Next they will be trying to marry and vote.

nonclaim's picture

Next they will be trying to marry and vote.

They don't vote but choose/finance the candidates you vote for... as for the marriage process that goes as joint-venture, merger, buy-out, spin-off/out etc, same things with different names. Interesting huh?

drB's picture

Most EU banks report any transfers/deposits of US residents to US government. Most Asian banks do the same. They have people by balls in any case - both if you report or do not report.

drB's picture

An average person in US can not set up a corporation - while transfer to some reasonable bank (Singapore, Switzerland, Liechtenstein, Norway) can be done but the bank most likely will report this back to US. Holding Au or Ag at home presents some risks if shit hits the fan - risk of looting/stealing. I have not seen a reasonable way how someone who is not worth $xMM can hide his money, just slogans.

buzzsaw99's picture

Not where you can access it by wire. There is always a risk no matter what you do.

Boston's picture

How about opening a safe deposit box in Canada, and storing your PM's there.

Unlike Europe or Asia, Canada is accessible by car.  And because there's no electronic record of the box contents, there's nothing to report.

Tangurena's picture

You still need a passport and positive permission from DHS to leave the US via car. So if for some reason the Department of State decides that they don't want to renew your passport, you are going to have some trouble getting to your lewts.

Boston's picture

Just did it.  Passport yes (good for another half decade); DHS permission, nope.

Also, I know here in New England at least, there are many small road, "honor system" crossings, where no guards are stationed.  Most of these are for locals who cross over, back and forth, regularly.  I can get across, no problem, trust me.

 

i-dog's picture

"Holding Au or Ag at home presents some risks if shit hits the fan - risk of looting/stealing"

Cheeses, the bankstas have the sheep well trained!!!

Ummm ... what's your definition of "when TSHTF"? ... errrr, bank holiday? gold confiscation? government looting of safety deposit boxes? ATMs offline? SLV/PSLV default? mint/commercial vaults frozen? airports closure?

What are the odds of all of the above in the event of TSHTF? 1:1

What are the odds of an individual being robbed of well-hidden gold at home? 20:1 ... 100:1 ... 1,000:1 ... 10,000:1?

naughtius maximus's picture

If you don't want to be robbed then don't tell anyone there is anything worth robbing you of in your house.

LudwigVon's picture

"I have not seen a reasonable way how someone ... can hide his money"

 

You have GOT to be kidding me. They have been around forever. Pirates even had them. If it must be hidden then do just that, hide it in your home. If you rent, find a place you will stay for a while, and hide it there. Preferably you move to a state which still obeys they constitution regarding defending said property should anyones life be at risk. This is how America was meant to be. Sound money, sound communties via the lack of inflation ensuring poverty combined with the profligacy of armed homes.

Oracle of Kypseli's picture

If you gonna have a foreign account you should have at least $50k otherwise, I suggest a good mattress. If you have $50k, then you can afford $10k for a foreign passport.

Those who have travelled and worked in other countries, are comfortable doing this and know which countries will give you passports. If you have the need, the money and the desire to do this, you will find the way. Stay away from banks that have branches in the US.

SilverIsKing's picture

Good point.  How about setting up a corporation in Belize which then opens bank accounts in Europe or Asia?

a) Would a FBAR be required since the individual would not personally have a foreign bank account?

b) Would earnings of the Belize based company be taxable in the US if the funds remain in the bank accounts in Europe and/or Asia?

FeralSerf's picture

They've got you covered.  There's probably a special exemption if your name is Cheney, Rumsfeld, Bush, etc.

"US taxpayers are obliged to report all foreign financial accounts in which they have either a beneficial interest or signature authority, so long as the aggregate value of all the accounts exceeds $10,000 at any time during the calendar year. . ."

YHC-FTSE's picture

Hell, if Bush, Rumsfeld, Cheney and their friends at Haliburton and Blackwater shell companies fail to disclose some of their 1.9 Trillion dollars in deposits in Cayman Island accounts why should YOU? 

sun tzu's picture

Bush, Rumsfeld, Cheney

 

Get with the times. It ain't 2008 anymore