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IRS FATCA Making Banking Abroad For U.S. Citizens EXTREMELY Difficult … Which is exactly what it was designed to do.
I received this email below about the The Foreign Account Tax Compliance Act from one of our VIP Members and thought you would want to see the reply sent to me by Mark Nestmann who has written many tax related articles for us ….
The initial email inquiry:
“I just read an article regarded FATCA and the fact that banks in Costa Rica, as well as many other places, are no longer accepting American business.
I live on SS, and expected to be able to transfer that monthly income to an account in Costa Rica or elsewhere, should I chose to move. Obviously, if I have no access to funds, this would put a real burden on any potential change of address. Any solutions?”
Here is the reply I received from Mark:
“Scott,
He could have the money deposited to a US account and live off of a debit card. That’s what a lot of people will probably wind up doing once FATCA comes into effect since it will be impossible in many cases to open a foreign account unless you have a very large dollar opening balance.
Sorry I don’t have a better solution. He could also contact every bank in Costa Rica to see what their specific policies are with reference to US clients. But if he opens an account at a non-FATCA compliant bank the SS payments will be subject to 30% withholding.”
Mark
PS. As you can see from the [url=http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-(FATCA)]Internal Revenue Service website here[/url]:
* FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts
* FATCA focuses on reporting:
By U.S. taxpayers about certain foreign financial accounts and offshore assets
By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest
* The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.Our funds have been deposited in a U.S. bank since before we arrived in Costa Rica. It is the same bank we used for many years before we made the move.
You don’t quit using a bank that is voted #1 in the U.S. by American depositors.
We always draw our funds through the local banks with our debit card in colones and never pay anything with dollars.
Never had a problem.
[quote=”sweikert925″]Read an article where? Is it from a reputable source of information? Did the reader perhaps misunderstand what he or she read? Is there any actual confirmation from an expat who tried to open an account and was denied with this new agreement cited as the reason? Or is this another (gasp!) wild rumor?
Yeah, I know. Boring old facts. But sometimes reading boring old facts is a good approach before deciding whether you need to panic.[/quote]
1. Once again your comments clearly demonstrate that you do NOT live here sweikert925 and know little about the real, practical world of living abroad.
Quoting IRS “facts” and a NYT article does NOT tell you how extremely difficult the U.S. has made it for American citizens living abroad – you know, actually on the ground in the country – to do their banking…
2. It’s safe to assume that the email writer didn’t feel it was necessary to provide us with his source of information but I can assure you that opening new bank accounts is now a very challenging experience.
Scott
Mark’s response to Scott’s original post is absolutely correct.
A little common sense would tell you that any legitimate retirement funds, i.e., IRA, SS income, retirement income, 401k, etc. is easily deposited in a U.S. bank and withdrawn at the local ATM’s relieves all law abiding citizens of any problem.
Those who have a problem are the ones who are trying to hide income from the IRS in order to avoid paying legitimate taxes.
wait!!!! stop the presses
you mean to tell me sweikert does not live in costa rica yet??? :shock::shock::shock::shock::shock:
[quote=”sweikert925″][quote=”Scott”]Quoting IRS “facts” and a NYT article does NOT tell you how extremely difficult the U.S. has made it for American citizens living abroad – you know, actually on the ground in the country – to do their banking… [/quote]
If you and other readers here think the information I linked to isn’t relevant to the discusssion then you and they are entitled to your opinions.
And on the subject of opinions, I expressed none as to whether or not this would indeed result in trouble opening a bank account in Costa Rica. You might need to re-read my comment.
When someone posts something which amounts to no more than a rumor, I for one want to know more – such as, in this example, what the law actually says and an explanation of how it affects people from, oh, I don’t know, maybe the actual government bodies that are going to be enforcing it as well as maybe some other expert opinions on the subject. I am in favor of as much information on any subject as possible – including [b]FIRSTHAND[/b] experiences from people there in Costa Rica – and it really puzzles me as to why you object to that.
Your position seems to be – secondhand information from one person with no way to verify the information = good. Links to reputable news and governments sources that explain in great detail the full story = bad.
We will just have to disagree on that point.[/quote]
[quote=”waggoner41″]Mark’s response to Scott’s original post is absolutely correct.
A little common sense would tell you that any legitimate retirement funds, i.e., IRA, SS income, retirement income, 401k, etc. is easily deposited in a U.S. bank and withdrawn at the local ATM’s relieves all law abiding citizens of any problem.
Those who have a problem are the ones who are trying to hide income from the IRS in order to avoid paying legitimate taxes.
[/quote]Isn’t it “Innocent until proven guilty”…. seems I now have to prove I’m not guilty of some illegal act without even having been involved in anything other than opening a bank account.
It’s funny… Bank of America was opening accounts for illegal aliens in the US for folks from Mexico without social security numbers with no problem…. I go into a bank and I have to prove who I am, provide a social security number, and fill out a ton of paperwork all in the name of national security…. but the short tan fellow with the accent has no problem…. what a joke!
Your rights and freedom are never taken away overnight… you’re convinced to give them away slowly by politicians who make you believe it’s all for your benefit. Wise up folks.
My Rica wife and I went to BN the other day to open an account in her name and they told us that we needed to prove where the $9k came from. As it was less than $10k did NOT have to declare at customs, but they still want to know where it came from, even though there is a complete money trail from US banks showing exactly where it came from. The U.S. is forcing these other countries,using fear and intimidation,into doing their dirty work. They are trying to force US citizens back home to continue extorting monies from them to feed the STARVING bureaucrats clamoring for an ever increasing portion of YOUR money! 😈
[quote=”fishrman”]My Rica wife and I went to BN the other day to open an account in her name and they told us that we needed to prove where the $9k came from. As it was less than $10k did NOT have to declare at customs, but they still want to know where it came from, even though there is a complete money trail from US banks showing exactly where it came from. The U.S. is forcing these other countries,using fear and intimidation,into doing their dirty work. They are trying to force US citizens back home to continue extorting monies from them to feed the STARVING bureaucrats clamoring for an ever increasing portion of YOUR money! :twisted:[/quote]
It’s disgusting really and sad to say most of the sheeple of society will have nothing but to comply.. because that’s what sheeples do..
The only options is to find stable countries that are strong and independant and do not kiss ass to the U.S. like Hong Kong for example.
you can do your own research
I have 2 bank accounts plus 2 merchant accounts plus a few paypal accounts.. and I since I have no debt here in this country I use the debit card to withdraw amounts $2 to $3 per month..
I keep a year in cash buried in the event 🙂 with some gold and silver coins..
[quote=”davidd”][quote=”fishrman”]My Rica wife and I went to BN the other day to open an account in her name and they told us that we needed to prove where the $9k came from. As it was less than $10k did NOT have to declare at customs, but they still want to know where it came from, even though there is a complete money trail from US banks showing exactly where it came from. The U.S. is forcing these other countries,using fear and intimidation,into doing their dirty work. They are trying to force US citizens back home to continue extorting monies from them to feed the STARVING bureaucrats clamoring for an ever increasing portion of YOUR money! :twisted:[/quote]
It’s disgusting really and sad to say most of the sheeple of society will have nothing but to comply.. because that’s what sheeples do..
The only options is to find stable countries that are strong and independant and do not kiss ass to the U.S. like Hong Kong for example.
you can do your own research
I have 2 bank accounts plus 2 merchant accounts plus a few paypal accounts.. and I since I have no debt here in this country I use the debit card to withdraw amounts $2 to $3 per month..
I keep a year in cash buried in the event 🙂 with some gold and silver coins..[/quote]
I can tell you first hand that opening an account overseas if increasingly difficult. I was denied at Belize Bank first, then finally got to a bank that would take me, but not after jumping through flaming hoops, they wanted 2 bank references, a personal reference from someone who has an account there, disclosures about where the money came from.
Fact is, the banks are scared to death about the rath from the FED and find it easier not to deal with US citizens to avoid the FED dropping the hammer on them.
Davidd…..CR is still a possibility, Belize is fine, except the roads, and people getting shot outside my house (and I live in the same neighborhood as the Prime Minister!) I think family is ready to head a bit further south.
Kwhite1
my friend just moved out of Belize for many of the same reasons you stated. Belize looks great on the surface but they have lots of issues.. and the problem is that there is no middle class there so your either a rich gringo.. or dirt poor.
you can’t blend in..if that makes any sense.
you should read up on http://money.cnn.com/2014/01/08/technology/john-mcafee/
http://www.huffingtonpost.com/tag/john-mcafee
pretty wild :D:D
Costa Rica is changing also my friend.. if you are able to NOT need to do any kind of business here then its a viable option..
you need to minimize your footprint here with regards to engaging with any bureaucratic agency here.. and live life.. its great.. but in 10 years this may change..
since your in your diligence stage.. look at other options also..
Too many Americans that are looking to leave the U.S. for some reason Costa Rica is always an option for them.. which causes its own issues..
god help us if Swriekert actually moves here LOL
just kidding Sweikert 😉
[quote=”sweikert925″][quote=”Kwhite1″]Belize is fine, except the roads, and people getting shot outside my house (and I live in the same neighborhood as the Prime Minister!)[/quote]
Guess you’ve changed your mind about Belize since you posted [url=https://www.welovecostarica.com/members/cfmbb/messages.cfm?messageid=67CB19AC-24E8-5ED2-F1023952BA3A9768#67CB19AC-24E8-5ED2-F1023952BA3A9768]this[/url].[/quote]
I really wish you would lay off the free Obama handouts, the free phone, free food, free housing, and free medical have really warped your thinking. Oh And the economy is roaring back…isn’t it? Bow down to your savior….
[quote=”davidd”]Kwhite1
my friend just moved out of Belize for many of the same reasons you stated. Belize looks great on the surface but they have lots of issues.. and the problem is that there is no middle class there so your either a rich gringo.. or dirt poor.
you can’t blend in..if that makes any sense.
you should read up on http://money.cnn.com/2014/01/08/technology/john-mcafee/
http://www.huffingtonpost.com/tag/john-mcafee
pretty wild :D:D
Costa Rica is changing also my friend.. if you are able to NOT need to do any kind of business here then its a viable option..
you need to minimize your footprint here with regards to engaging with any bureaucratic agency here.. and live life.. its great.. but in 10 years this may change..
since your in your diligence stage.. look at other options also..
Too many Americans that are looking to leave the U.S. for some reason Costa Rica is always an option for them.. which causes its own issues..
god help us if Swriekert actually moves here LOL
just kidding Sweikert 😉
[/quote]
I agree David, I read all of the Mcaffe post, he was a nut job from the beginning, he full on killed that dude. No other reason the flee the way he did. He passed within a 100 yards of me when he fled….chicken SH**.
Belize is is cool for me, I am happy with a hammock in the jungle, but my wife and daughter don’t feel safe walking around, it is true that the locals call them out if I am not there with them. But being such a small population, in our small town everyone knows I acquired a weapon permit (no small task mind you), and they leave them alone now.
I agree CR will conform to the US standards soon, but the crime is less than where we are and I can ride the pony until someplace better emerges.
I have an opportunity to be the developer on 2000 acres on the coast south of Jaco and north of Manual Antonio, not sure if I can pass that one up. It is an investor that has a lot of land here in Belize but feel CR is a hotter market. I can make enough to possibly retire on, so it is worth investigating. I am coming down next month for a few days to look at the property.
Perhaps we would be more kindly disposed to Sweik’s comments if we felt less like we were being lectured to by someone with no first-hand experience with the country we call home. It seems a bit like having someone try to teach you about all of Shakespeare’s plays after he read the Cliff Notes on “Hamlet”.
[quote=”sweikert925″][If the topic under discussion is “What is the plot of Hamlet?” then Cliff’s Notes would actually be a better source of information.]
If you don’t think my comments are worthwhile then you are perfectly free to ignore them. But one of us actually posted a comment that concerned the topic under discussion and one of us posted a comment purely to take a potshot at the other – so who is lecturing whom?
You seem to be following the pattern of another regular who does nothing here lately except to wait for a post of mine and then hurl another insult at me. (He is obviously obsessed with me, and some private comments he sent me when I first joined explain why, but tact forbids that I say anything more).
You are perfectly welcome to post comments on any topic – including detailing my supposed shortcomings – but I suspect the other people who read this board for useful information about Costa Rica might prefer some of that firsthand knowledge that you have gained from living there instead. I know I would.[/quote]
Just we are cooking out of the same frying pan, I did not address you or comment on any of your post in this thread. You, my friend, are the one that said I guess I changed my mind? My post was not directed at you, to you, or about you but yet you felt compelled to make an off the way statement to me about what I think, obviously you do know better than me at what I think.
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