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09-02-2006, 04:01 AM
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#1
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Dryer sheet wannabe
Join Date: Jan 2006
Posts: 15
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Monte Carlo Banking
When I was 18 I took a trip to Monte Carlo and decided to take a walk into one of their banks. I sat and spoke to the banker about opening an account and how it would work. If I am remembering correctly, they explained that I can put money in and buy US stocks and earn interest without paying any Monaco taxes. Also, since the account is linked to a number not a Soc Security # there was no reporting to the US and hence no US taxes. Is this an option to allow me to retire early with a smaller bankrole? Does anyone do this?
- Shabber
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09-02-2006, 04:52 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,115
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Re: Monte Carlo Banking
well you are required on your taxes to report foreign accounts.....not sure if you dont how it will come back to haunt you....... maybe when you receive checks from them your bank will report them.....
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09-02-2006, 05:58 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Re: Monte Carlo Banking
Shabber,
I don't know how long ago you were 18 but what you are saying was very true 30 years ago. Since then, there is a checkoff on Sch B to "declare" your ownership of a foreign bank account. Probably the only thing worse than checking "yes" is checking "no" when you have one. Checking "yes" guarantees a rectal exam like audit. Tax fraud is forever.
There is now greater "transparency" with most foreign banks. They will generally cooperate with US investigations. If you are a small player, you will likely be able to get away with it indefinitely. If something ever looks funny to the IRS, you will be investigated more closely and probably get nailed.
Ex-spouses and former girl friends are the leading cause of the "better" tax cheats getting caught.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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09-02-2006, 06:40 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Re: Monte Carlo Banking
I used to check "Yes" when I controlled a foreign bank account. I have never been audited.
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09-02-2006, 06:56 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Re: Monte Carlo Banking
Quote:
Originally Posted by LOL!
I used to check "Yes" when I controlled a foreign bank account.* I have never been audited.
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My data is from many years ago and right after the check off was put in. If you had your money in a "respectable" country as far as banking was concerned and claimed interest,etc, you were probably ok. The person I knew had money in Grand Cayman and had multiple business interests, tax loss carry-forwards, etc. He was an audit waiting to happen.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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09-02-2006, 11:25 AM
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#6
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Dryer sheet wannabe
Join Date: Jan 2006
Posts: 15
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Re: Monte Carlo Banking
It was about 20 years ago when i was there. And yeah, I was thinking the exact same thing about the ex-wife/girlfriend scenario. So many must fall into that.
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09-02-2006, 11:40 AM
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#7
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
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Re: Monte Carlo Banking
Quote:
Originally Posted by Shabber
It was about 20 years ago when i was there. And yeah, I was thinking the exact same thing about the ex-wife/girlfriend scenario. So many must fall into that.
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Tax reciprocity & the IRS's lifestyle audits have pretty much ended the "good deals" of overseas accounts.
Add in that most American mutual fund companies won't accept P.O. boxes as mailing addresses and it's difficult to "Hide Your Assets and Disappear". Heck, there are even problems with American military from FPO/APO addresses being turned down by American mutual-fund companies and brokerages, right Flowgirl?
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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
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09-02-2006, 11:52 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Monte Carlo Banking
One of our friends and neighbors is a UK citizen but has been here forever. You cannot imagine the difficulties he has had trying to deal with his overseas assets because all of the US financial institutions won't touch anything that might increase their level of scrutiny from the federales. Things are very different these days.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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09-04-2006, 03:36 PM
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#9
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Recycles dryer sheets
Join Date: Feb 2006
Posts: 146
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Re: Monte Carlo Banking
For US citizens:
All foreign accounts must be reported if the amount is over $10,000, or you risk fines and/or possibly criminal penalties. You must fill out Treasury Department Form 90-22.1
All taxable income must be reported to the IRS, or you risk fines and/or criminal penalties.
I suggest you seek professional advice from a tax lawyer or accountant.
__________________
The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of misery.
Winston Churchill
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09-04-2006, 08:35 PM
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#10
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Full time employment: Posting here.
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 808
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Re: Monte Carlo Banking
Quote:
Originally Posted by mark500
For US citizens:
All foreign accounts must be reported if the amount is over $10,000, or you risk fines and/or possibly criminal penalties. You must fill out Treasury Department Form 90-22.1
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Applies to Resident Aliens as well.... i.e. anyone filing a 1040 US tax return. I have filled in that form more times than you can count (well, actually I just zerox last year's copy, use a bit of whiteout to change what has to be changed, and re-zerox and sign). Not that big a deal, but important to ensure it is filed before June 1 for the previous tax year.
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