TDF 90-22.1 Reporting rules -

If you are a US citizen living in Canada or KNOW a US citizen living in Canada, read this and pass it on.  If you are a US citizen living in the uSA and you have a forei9gn account of ANY kind or your brother, sister, aunt, uncle, best friedn or worst enemy has a foreign account, pass this on to them,
This is not the result of a question but is the result of an IRS Tele-conference on June 20, 2007. 

The subject was the reporting of foreign bank on form T D F 90-22.1.

In particular, the tele-conference made the point that  June 30th  "IS" the deadline and that fines are being increasedand applied more often and in particular, there are / will be severe penalties for non-compliance.

It would seem that there is NOW a $10,000 penalty for failure to file the form although that is in the regulations and not on the form.The $10,000 penalty can be imposed if the form is not filed by June 30th of a year. However, both of the IRS participants in the formum agreed that if a taxpayer came forward voluntarily and filed, there would not likely be any fines.

I know from other sources that some 1,000 clients of former advisor Jerome Schneider are in the process of  being fined as I write this.

I also admit that I have not worried much about the June 30th filing date in the past.

However, the teleconference made the point that practitioners are subject to fine for not following up on these filings.

As I write this Terry or Phyllis ?? is making it very clear that RRSP accounts must be reported but that the Company Pension does not have to be reported.

So--- if you have not being reporting your foreign accounts - report now.

AND, they also made the point that everyone with foreign accounts MUST file schedule B, even if there is no earnings form the accounts.

AND, they also made the closing  remark that if they have NOT been filed inteh past, taxpayers shoiuld file back SIX years.

david ingram

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