Overseas tax recovery, you can't escape whether you have money or not

Overseas tax recovery, you can't escape whether you have money or not. Please pay attention to Chinese Americans who have overseas accounts that comply with the US government's reporting requirements, but do not plan to declare it! A U.S....

Overseas tax recovery, you can't escape whether you have money or no money. Please pay attention to Chinese Americans who have overseas accounts that comply with the US government's reporting requirements, but do not plan to declare it! A new U.S. law will include private banking services within the scope of tax audits on overseas accounts. Once the law is enacted in 2013, not only wealthy American customers of Taiwanese financial institutions will become targets, but ordinary Americans may also be targeted. The U.S. Foreign Account Tax Compliance Act (FATCA), which will come into effect, stipulates that all overseas financial institutions with investments in the U.S. before 2013 must sign an agreement with the Department of the Treasury and agree to provide U.S. customer account data, including name, address, Social Security number or taxpayer identification number. If regulations are not complied with, the U.S. government has the right to withhold up to 30% of the interest and dividends earned by these institutions from their investments in the United States. Due to the severe penalties, overseas financial institutions have no choice but to cooperate as much as possible unless they do not want to trade stocks or invest in bonds in the United States. However, there is a proviso to the above-mentioned regulations, that is, if the total account assets of an American person in the same overseas financial institution do not exceed US$50,000, the overseas financial institution is not required to provide the customer data to the United States. The law seems to be aimed at wealthy people, but upon closer inspection, it is found that the scope of application includes overseas financial institutions that provide private banking services. In Taiwan, private banking services can be enjoyed with only NT$500,000, or US$17,000. This will result in that after the law comes into force on New Year's Day in 2013, American customers with such accounts will have to provide data to the US government even if their assets are less than US$50,000. In the United States, private banking services are special services specifically provided to wealthy people. They assist wealthy individuals with investment, financial management, etc. through tailor-made services. Usually, customers must have at least US$50,000 in deposits and other investments in financial institutions before they can obtain relevant services. In response to FATCA, the IRS has issued Announcements 60 and 34, welcoming opinions from global financial institutions. The Bankers Association of the Republic of China, which represents 84 financial institutions, wrote to the Commissioner of the Internal Revenue Service and the Deputy Secretary of the Treasury in response to the law at the beginning of this month. It mentioned that in Taiwan, private banking services can be provided with an account of US$17,000, and suggested that it be better to use US$250,000 as the threshold for this requirement. In addition, FATCA requires overseas financial institutions to strictly monitor U.S. accounts with fixed deposits of more than US$500,000. The letter said that Taiwanese people like to deposit and it is common to have fixed deposits of more than US$500,000. It is recommended to increase the limit to US$1 million. It is not known whether the US government accepts these recommendations. Accountants recommend that anyone with overseas accounts report it as early as possible. The deadline is the end of June. If you have never declared overseas accounts for many years, you may wish to take advantage of the second wave of amnesty program. The deadline is the end of August. The advantage is that you can avoid criminal prosecution. U.S. law stipulates that if the maximum total cash value of all overseas accounts in a certain year exceeds US$10,000, the TDF90-22.1 form must be filled in and reported to the Ministry of Finance before June 30 of the following year. The law is now monitored by the IRS for taxpayer compliance.