Don't Forget to Come Clean: File Your FBAR by June 30th

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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.

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