Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-19-2015, 09:09 AM
Junior Member
 
Join Date: Mar 2015
Location: Dubai
Posts: 1
Foreign bank deposits - Red Flags - Russians - Open for problems?

I recently took a position with a Russian oil company. Job is overseas in Dubai. This is my 5th year overseas, but first with this new company. I've been filing taxes with no issues, however, 2014 was the first year for which I had an overseas bank account open which I will need to report on by June 30th, 2015.

So two things are happening here. New overseas bank account report (FBAR). No issue on the surface, except the big red flag the IRS to investigate to make sure it was really only opened last year. I guess this is because the GAO told them a lot of people say this, only to "quiet report" and cover old sins without a penalty or whatever. Not in this case here, but...

However, the second issue is HUGE. This employer forces me to use this one account for all payments, whether they are income OR expense! I fly all over the world, and into some dangerous and very expensive areas.

Put simply, my question is, are all deposits into a bank account "income" until proven otherwise? Now that the IRS can force any bank to turn over records (this is a Citibank account), do I need to be able to explain (prove) each and every deposit into this account? Some of these deposits are quite large for business trips, and...obviously, I will not receive 1099, or even very much detail on the payslips. Being as it is a Russian company, they don't much care about my tax issues, and report nothing to anyone.

So what do I do? I'm not paying taxes on money I am reimbursed to do the company's will, or pay my credit cards that I ran up with flight tickets (I buy much of my own transportation), car rentals, personal security (in some countries), etc.. That is insane. But then, if an auditor looked into this bank account, it looks like I'm a CEO not an engineer! One thing in my favor I guess, is that the net balance doesn't change much (unfortunately). Still, it is a lot of money and I'm worried.

Any advise?

Thanks!

Slackin


Last edited by slackin : 03-19-2015 at 09:17 AM. Reason: clarity


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-20-2015, 02:02 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,114
I recently took a position with a Russian oil company. Job is overseas in Dubai. This is my 5th year overseas, but first with this new company. I've been filing taxes with no issues, however, 2014 was the first year for which I had an overseas bank account open which I will need to report on by June 30th, 2015. ==========>>>>>>>>>>>>you need to to file an FBAR if the aggregate value of all foreign financial accounts exceeded $10k at any time during the calendar year reported.

So two things are happening here. New overseas bank account report (FBAR). No issue on the surface, except the big red flag the IRS to investigate to make sure it was really only opened last year. I guess this is because the GAO told them a lot of people say this, only to "quiet report" and cover old sins without a penalty or whatever. Not in this case here, but...

However, the second issue is HUGE. This employer forces me to use this one account for all payments, whether they are income OR expense! I fly all over the world, and into some dangerous and very expensive areas.

Put simply, my question is, are all deposits into a bank account "income" until proven otherwise? Now that the IRS can force any bank to turn over records (this is a Citibank account), do I need to be able to explain (prove) each and every deposit into this account? Some of these deposits are quite large for business trips, and...obviously, I will not receive 1099, or even very much detail on the payslips. Being as it is a Russian company, they don't much care about my tax issues, and report nothing to anyone. =============>>>>>>>>>>>>>>I guess so;you need to file Form TD F 90-22.1 ; Basically, anyone with $10k or more in $US currency value against foreing currecnies in a foreign bank or financial account at any point during the calendar year will be required to file Form 90-22.1. This means that if you have a checking account inrussia with a steady balance of $9,950 but the account contains an extra $50 for a day, you will still be required to report that account on the FBAR, as well as any other foreign accounts you have.

So what do I do? I'm not paying taxes on money I am reimbursed to do the company's will, or pay my credit cards that I ran up with flight tickets (I buy much of my own transportation), car rentals, personal security (in some countries), etc.. That is insane. But then, if an auditor looked into this bank account, it looks like I'm a CEO not an engineer! One thing in my favor I guess, is that the net balance doesn't change much (unfortunately). Still, it is a lot of money and I'm worried.=======>>>>>>>>>>> It is an informational return only, meaning it will have no information on the filer’s tax liabilityIt is just a simple form used to collect basic information on financial accounts overseas where you , a us person, have control over them whether it is because you have signature authority on the account or because you can exercise control over them .



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What are the exceptions for filing a FBAR (Foreign Bank and Financial Accounts) Form? TaxGuru For 2013 0 06-24-2013 01:50 PM
Closing date to Report Foreign Bank Accounts-June 30th 2013! TaxGuru For 2013 0 06-24-2013 09:49 AM
Foreign Bank Investment biswaji Capital Gains 1 05-18-2013 03:49 AM
IRS Reminds Taxpayers to Report Certain Foreign Bank & Financial Accts by June 30! TaxGuru For 2008 0 06-19-2008 12:37 PM
IRS requires taxpayers report whether or not they have a Foreign Bank account! TaxGuru For 2008 0 05-05-2008 06:21 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning