DORPH
Nov 11, 2018, 07:41 AM
If my wife was to set up a bank account overseas (we are both US citizens) how much money could we transfer to that account per year and what is the IRS reporting requirement and tax obligation.
Thank you
ma0641
Nov 11, 2018, 09:22 AM
https://www.nerdwallet.com/blog/banking/bank-account-another-country/
Just searched Setting up a bank account in another country-lots of hits.
AtlantaTaxExpert
Nov 11, 2018, 02:13 PM
There is NO law saying you cannot set up a bank account in another country.
However, any interest earned STLL have to be reported on your tax return.
AND if, assuming there are multiple overseas accounts, when you add up all of the accounts and the combined balance exceeds $10,000 USD (when converted using the exchange rate of 31 December of the year in question), you must submit the FBAR (which is done by filing FinCen Form 114 electronically.
This is a requirement completely separate from your annual tax return.