isitts
Joined: 25 Dec 2008
Location: Korea
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 Posted: Sun May 15, 2011 9:44 pm Post subject: |
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| sirius black wrote: |
| Also, although you make less than 90k, if you owed taxes before you left, then I would think in theory they can ask the Korean bank you have your money in to garnish the amount from your local korean bank. At least in theory. |
Obviously, if you worked in the US before coming here, that isn�t included in your foreign-earned income and therefore, you have to pay it.
| atwood wrote: |
| MA_TESOL wrote: |
Forms Which Must be Filed With IRS to Avoid Severe Penalties
If you own more than a 5% ownership interest in a foreign (non-US) corporation you are required to file a special form with the IRS reporting that interest. In many cases, if that foreign corporation is making profits, it will be a �controlled foreign corporation� and you may also owe U.S. tax on its earnings. If you are the beneficiary or trustee of a foreign trust you must file a special form with the IRS. Another a form is required to be filed with the U.S. Treasury if you have ownership or signature authority over a foreign bank account which anytime during the year has a balance of more than $10,000 US or more. If you fail to file any of these forms as required by law, you will be subject to penalties up to $10,000 or more. These penalties might be assessed many years from now when the U.S. IRS and the Mexican Hacienda finally start sharing information on a regular basis. If you do not file these forms when required, it will be very difficult to later avoid those penalties. |
I know of someone currently negotiating with the IRS regarding penalties on unreported bank account holdings. He's had to hire a lawyer/accountant. Supposedly, with the penalties he owed in the neighborhood of $20,000. He had a lot of money in the bank.
I think most teachers have little to worry about. They're really after people hiding money overseas. Besides, any interest from a bank account is already taxed by Korea. But it's usually better to be safe than sorry. |
Well, what about if you designate Korea (or whatever foreign country you live in) as your tax home? Seems like there�d be an exemption from being double taxed on your savings account. |
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