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mexican banks and IRS


monadog

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Is anyone here in Lake Chapala who has money in a Mexican bank receiving notices about filing a IRS form W9 for interest or dividends ? (my bank is HSBC) I also have money in Lloyd and they are not sending out these notices. Is anyone complying with notices or is everyone just ignoring them?

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This form is to cover the banks in case IRS contacts them about accounts here. The W-9 is for Americans and the form is titled Request for Taxpayer Identification Number and Certification

It requires your name, social, status which most will be individual/sole proprietor unless you have a business here, address and signature.

Uncle Sam wants to know.

You can click on the Formato W-9 in the letter and it will open in English.

I don't know what HSBC will do if the form is not provided to them since they have requested it.

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When I returned early this month from having been away for three weeks, I found a notice of Registered Mail (Correo Registrado) in my mailbox. I was told at the post office in Chapala that the mail had been returned to the sender, of which there was no record, leaving me wondering who could have sent registered mail to me at my address in San Antonio Tlayacapan, which is only used for my CFE, Telmex, and Banamex accounts, all of which appear to be working normally. I am now wondering if it could have been a notice from Banamex. If the notice didn't require me to take some action with Banamex, I guess I need not to worry about it (I maintain my account only to pay my CFE and Telmex bills and receive no interest on it) but perhaps I should check with Banamex? (I recall being required to sign an IRS form for the account at the bank a couple of years ago to reopen it after it had been closed by Banamex for some reason I never was able to discover.)

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Gosh, this year I had until I think mid June to e-File my FBAR.Coons, I hope you are only kidding about the April 15th date for 2016

No, I read that they had changed the date for filing.

What I don't understand is all the angst,if you're not a money launderer,tax evader,etc.,what's the big deal with filing the FBAR?

I've been doing it for years,now that you can e-file it's even easier.

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Ah but cbviajero, what you don't understand is that 99.999% of the people are NOT doing anything illegal, the stupid FATCA law is attacking a bunch of old retired people just trying to enjoy the final years. The US GOV has no biz in poking into what we're doing in MX or anywhere else and it's caused expats worldwide to lose bank accounts etc. Banks in yadayada say to the Americans - "screw you, we don't want your piddly accounts for the hassle your gov causes us".

If I won the lottery tonite I'd have more than enough to circumvent the US GOV - if I wanted to - so, you have to ask yourself why is it that that they come down on people like us retired and scraping by?

Or, is it that you find this FBAR banking "law" slipped into a "hiring bill" to be so exceptional that you support it?

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Giltner,I just don't find that having to file the FBAR is that big a deal,I've been filing tax stuff all my adult life.

Currently the IRS owes me a hundred and six dollars plus change,but I've decided not to pursue it.

What does bother me about the new banking regs is how difficult they've made it for US citizens living abroad to open bank accounts in their home country.

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From "American Citizens Abroad"

FBAR filing date changed

The FBAR form filing date will be aligned with annual income tax filing deadline of April 15 starting in tax year 2016.

On July 31, 2015, President Obama signed a three-month highway funding extension bill called “The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015” (H.R. 3236, Pub.L. 114-41). Under the new legislation, the due date of FinCEN Form 114 (known as the “Foreign Bank Account Report” or “FBAR”) will be April 15 instead of June 30 and filers will be able to seek a six-month extension of the deadline. Similar to individual income tax returns, US citizens residing abroad will receive an automatic extension of time to file the FBAR until June 15, with an additional four-month extension available to October 15.

Essentially, the new legislation conforms the due date of the FBAR to the individual income tax return filing deadline. Under prior law, the FBAR filing deadline was June 30, and no extension was available.

The new deadline applies to FBARs for taxable years beginning in 2016. As a result, for filers required to file the FBAR for 2015, the deadline will remain June 30, 2016. For filers required to file an FBAR for 2016 and thereafter, the deadline will be April 15 of 2017 and of each subsequent year.

Fortunately, the short-term highway funding bill did not include the proposal to revoke existing passports of US citizens with $50,000 or more of unpaid taxes (inclusive of interest and penalties). However, it is still possible that this provision could be included in the longer-term highway funding bill that must eventually be passed.

Last Updated August 26, 2015

Seems like a clear explanation to me

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Problem with these NON IRS forms we have to fill out from Treasury and some folks with Businesses here must fill out a Commerce form is you have no rights under the Taxpayer bill of rights. These forms are used by people who exporting arms and computers and such and have severe penalties for mistakes. These are both not IRS forms and so mistakes can be serious if they want to get you. The form is not a big deal but a mistake might be. Its really not appropriate that we fill out these forms when all the info is already going to IRS and sent by my bank to US government (bancomer) or on my tax forms I fill out. Taxes and interacting with US government is becoming painful and ridiculous. This being an example of useless government rules that do nothing. Why do they do this?? Because most of your IRS info is protected by taxpayer bill of rights and other agencies want the info and it looks like they get it by threatening small investors over 10,000USD in a bank with ever changing information requirements. Make sense now? The poor USA slob living in Mexico living on SS with a small 10,000 USD local bank account can now be thought of as a criminal by US government because he didn't fill out a obscure form. Its about the collection of information also and the government never found data it didn't like to keep and does. How to fix this is to raise the reporting limit to 100,000 USD from the current 10,000 like the requirement for the Commerce form and that would let most of us to not have to fill it out. Banks and tax forms will still require you to declare your earned and non earned income so taxes will be paid but the silliness of us filling out a Treasury department form will be gone for most of us.

So yea the form is easy BUT .........

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Yes if I have a total of $10,000 or more total in all of my foreign accounts then I must file an FBAR. So if I had 1001 accounts each with ten dollars therein, I would have a total of more than $10,000 US in accounts outside the US and would be required to report the name and total in each account.

Luckily, most of us only have one or two accounts and often with grand totals less than the equivalent of $10,000 US and therefore do not have to fill these forms. I have always had slightly more than $10 K and therefore had to fill out the FBAR form, which is very simple to do.

If it were hard to do, I would make sure that I had less than $10K US in my accounts located outside the US

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Ooops, wrong "F", my bad, the FBAR is $10K and is an old law 30-40 years old to combat racketeering when $10K was actually big money, now it's just a nasty "gotcha" for the IRS to prosecute expats who aren't aware. The suites mentioned are against FATCA which is the new pain that is causing worldwide angst, sorry for the misdirect.

Frankly, if I could cash out of MX I'd do it as I'm now NOB, but at 17:1 exchange? - not likely any time soon.

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I think the reportable threshold should be more like $50K. I get that they are trying to monitor transactions of big time tax evaders and other assorted criminals, but $10K is ridiculous. It's enough to make you want to hide your pesos under your mattress, or someplace... They need to wake up to the fact that LOTS of US taxpayers live out of the country on a modest budget and do not need this hassle!

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