Another thread has peaked my interest in the many ways the US Federal Government
and IRS - and by extension any State Law Enforcement and Legal
system (lawsuits) - has total access to all your financial records and transactions both here in the USA and abroad in other countries.
- - For cruisers who are US citizens or Legal
Residents living in the USA and/or either cruise
the world or end up living in another country - another layer of reporting on your financial matters has been added effective March 28, 2011. It is called the "FBAR" and has a new form TF F 90-22.1 which must be filed separate and apart from your usual IRS 1040 forms.
"Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (the
“FBAR”), is used to report a financial interest in or signature authority
over a foreign financial account. The FBAR must be received by the
Department of the Treasury on or before June 30th of the year
immediately following the calendar year being reported. The June 30th
filing date may not be extended.
Who Must File an FBAR. A United States person that has a financial
interest in or signature authority over foreign financial accounts must file
an FBAR if the aggregate value of the foreign financial accounts
exceeds $10,000 at any time during the calendar year. See General
Definitions, to determine who is a United States person.
- - For cruisers with wives who are citizens of other countries but who have US Legal Resident status - this form must be filled out and submitted if any of their financial assets (bank accounts, savings accounts, etc.) add up to more than US$10K at anytime during a calendar year. Of course there is also the IRS Form 1040 requirements.
- - For cruisers with foreign wives and the US citizen cruiser has signature or beneficiary status in their wife's home financial institutions, then it seems this new form is needed. And Of course there is also the IRS Form 1040 requirements.
- - For cruisers using a foreign bank and the money
is "outside" the USA this new requirement would also most probably be effective. If the Foreign bank - like maybe HSBC - has a USA location where you do transactions, this might be a "gray" area as to the requirement to file this new form. That would need some additional research