Non-US reportable accounts FATCA

jose23

New Member
I'm a non-US citizen and non-US resident. I have a personal checking account in a bank in the US on which I receive transfers from my customers for my freelance work. I want to know if my account will be reported back to my country under the FATCA agreement.
I was reading the FATCA Model 1A IGA(the one for my country), and found this:

"The term “[FATCA Partner] Reportable Account” means a FinancialAccount maintained by a Reporting U.S. Financial Institution if: (i) in the case of a Depository Account, the account is held by an individual resident in [FATCA Partner] and more than $10 of interest is paid to such account in any given calendar year; or (ii) in the case of a Financial Account other than a Depository Account, the Account Holder is a resident of [FATCA Partner], including an Entity that certifies that it is resident in [FATCA Partner] for tax purposes, with respect to which U.S. source income that is subject to reporting under chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal"

Does it mean that if the bank doesn't pay me any interest (ie less thab $10) over my checking account money then my account won't be reported?
 

fshore

Trusted Member
Business Angel
Does it mean that if the bank doesn't pay me any interest (ie less thab $10) over my checking account money then my account won't be reported?
Yes. Because the bank doesn't report the account to IRS if it doesn't earn interest.
 

jose23

New Member
Yes. Because the bank doesn't report the account to IRS if it doesn't earn interest.
Thanks for your reply.That means that only savings account will be reported? That looks pretty simple to avoid.

In as far as I am aware the US does not report foreigner's account in the US automatically.
I'm not sure about that. I search and found that US has signed Automatic exchange agreement with several countries. From where did you get that information?
 

Artemis Eleutheria

Well-Known Member
Thanks for your reply.That means that only savings account will be reported? That looks pretty simple to avoid.


I'm not sure about that. I search and found that US has signed Automatic exchange agreement with several countries. From where did you get that information?
From so many different sources that I thought this was common 1st grade knowledge by now. Check out the Tax Warriors Network to get it straight from the enemy's camp: The US can be blacklisted under the OECD’s new rules due to a forgotten commitment

What I am surprised about is the affirmation that the US IS doing any "Automatic exchange of information" at all ... any source to back that up would be very welcome indeed as that is new to me.
 

jose23

New Member
What I am surprised about is the affirmation that the US IS doing any "Automatic exchange of information" at all ... any source to back that up would be very welcome indeed as that is new to me.
I just got this information directly from the FATCA international agreement between US and other countries:
Article 2 Obligations to Obtain and Exchange Information with Respect to Reportable Accounts
1. Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the information specified in paragraph 2 of this Article with respect to all Reportable Accounts and shall annually exchange this information with the other Party on an automatic basis pursuant to the provisions of Article I of the TIEA.

I didn't know that was not actually into force in the US.
 

Mark Rucken

Building Trust
Entrepreneur
I hold EU passport and I have a private account in a top US bank for over a decade, they never reported anything to my country.
 

Martin Everson

Offshore Consultant
Business Angel
Source would be nice.
See my post below on subject and follow link to WSJ.

 

Artemis Eleutheria

Well-Known Member
See my post below on subject and follow link to WSJ.

Much appreciated ... however there is a considerable distance between being "elegible" to receiving information ... to information actually being sent out.

In return, the IRS is supposed to send the CRA information about U.S. bank accounts held by Canadians. The CRA, however, has repeatedly refused to reveal how many records, if any, it has received from the IRS as a result of the agreement.

As always, avoid single point of failure .... do not exclusively depend on the american banks keeping quiet about your US account.
 

Martin Everson

Offshore Consultant
Business Angel
All I can say is watch and learn for those hiding in US banks...lol ;). The only thing that can convince some people is being caught sadly.
 

Artemis Eleutheria

Well-Known Member
I am uneasy about the US situation ... but combined with a residency in an appropriate place it still seem workable. That said, it looks like a mousetrap and I am avoiding for now.

Cheese smells good though. :p
 

Educate

Trusted Member
Business Angel
Why would US report?

Think about it logically...what does US GET from reporting non-us citizen funds being held in US banks?

They gain nothing.

Everyone is reporting to them already.

And while rest of world reports, US can become number 1 offshore, because of it not reporting.

So US gets all of this money from rest of world.

WIN-WIN.

If they started reporting people would stop keeping money there.

And nobody can force them to report. It makes no logical sense for them to do so.
 

Martin Everson

Offshore Consultant
Business Angel
Think about it logically...what does US GET from reporting non-us citizen funds being held in US banks?
errr....because they signed a Bilateral agreement called FATCA and because of global need to fight tax evasion maybe....just saying :rolleyes:. Even the Swiss have seen sense.
 

Educate

Trusted Member
Business Angel
errr....because they signed a Bilateral agreement called FATCA and because of global need to fight tax evasion maybe....just saying :rolleyes:. Even the Swiss have seen sense.
Lol, so? It is not like if they didn't do it anyone would challenge them. US is number one superpower in the world, they can do whatever they want.

It is in US interest that tax evaders keep their money IN THE US.
 

Martin Everson

Offshore Consultant
Business Angel
Lol, so? It is not like if they didn't do it anyone would challenge them. US is number one superpower in the world, they can do whatever they want.
True they can go 100% rogue state, but the US is a member of the J5 now. They have to keep up with their international commitments. Hypocrisy would not help their standing in international affairs.


It is in US interest that tax evaders keep their money IN THE US.
Your funny...lol.
 

neweraoffshore

IT Nerd Offshore Guy
Entrepreneur
Mentor Group
@Educate I have the same opinion as you. Right now the US is the best offshore place in my opinion, however people in this forum don't like it because most people will have problems to open a bank account because they are not willing to take the time and money to fly to the US to open one. People here have a really wrong idea about the US, which is quite sad.
With Fatca and not signing the OECD treaty they took back/expanded their lead currency monopoly and gathering all possible dollars in their country. With this they can stabalize their banking system, because a lot of offshore money is never used, just parked. So every unused dollar is a dollar which they can hand out as a loan for their citizens to "make a America great again" .
Of course this topic is far more complex and actually too much to write down in one forum post. But as I said in another topic before. The US is welcoming tax evaders with open arms right now.... I was laughed at, but I still have this opinion...
 
Top