I have 3 accounts with a foreign bank and they never give your interest figures, since it is not required in that country, should I just forget about it and only report U.S. Accounts that give you 1099s?
2007-12-26 21:22:31 · 5 answers · asked by yawlcome2000 3 in Business & Finance ➔ Taxes ➔ United States
Even if your foreign bank does not issue you 1099, it must be crediting interest in your account. Go through the account statement and add all the interest received in a particular year.
Are you paying taxes on this foreign bank interest in the foreign country? If yes, you can file Form 1116 to get credit of the taxes paid. This will reduce your U.S. income tax.
If in 2007, at any time you had more than $10,000 as combined total in the foreign banks, then you must complete Form TD F 90-22.1 and file it with the Department of Treasury by June 30, 2008.
If you are required to file and do not file it, the penalty may be up to $10,000 (or more in some cases).
The Form TD F 90-22.1 can be download from:
http://www.irs.gov/
2007-12-26 23:17:36 · answer #1 · answered by MukatA 6 · 2⤊ 0⤋
You must claim all income from all sources. Period.
Additionallly there are other reporting requirements if you have control over funds deposited in foreign accounts regardless of how much interest is paid on the funds even if the income from those accounts is zero.
Bear in mind that the US exchanges tax information with many foreign countries. Do NOT assume that they don't know about that interest! Even where that data is not exchanged the IRS has ways to estimate what you made and will levy tax based upon that estimate. It would then be up to you to prove otherwise. The safest way to avoid that hassle is to play by the rules and pay your taxes.
2007-12-27 05:31:24 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
report it.
did you know that if you sell drugs or steal or prostitute yourself you are required to report that income. its in the federal tax code.
the money you save seems like nothing when you get caught committing tax fraud. besides, is not paying an extra 300 or 400 bucks really worth putting yourself in danger of getting audited for the next 5 or 6 years?
2007-12-27 06:28:33 · answer #3 · answered by viajero_intergalactico 6 · 0⤊ 0⤋
don't risk it - report all interest and pay the taxes
2007-12-27 09:08:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Sure, if you don't mind the chance of being convicted for fraud.
2007-12-27 05:31:52 · answer #5 · answered by happy 2 · 0⤊ 0⤋