Should you open an offshore bank account?

[SBR_John]

My answer for most of you is NO. While offshore bank accounts sound cool they bring on an onslaught of reporting requirements for Americans. There are offshore folks like law firms and trust companies that say you can have an offshore trust/foundation/company with a bank account that you can control and have it remain anonymous. Well, that’s sort of true.

Here are the two deal breakers:
1) The IRS requires you report all interest earned and the source of the earned interest.
2) The US Treasury Dept requires that you file a declaration of ownership on all foreign accounts that had $10k in them at any time during the year.

The penalty is severe for failing to report; $500,000.

So is it worth it? It might be for some of you but for most it certainly is not.

[JoshW]

John, do you think Neteller account qualifies under the reporting requirement? Obviously, a lot of us are in violation if it is. I have asked before, but never got even much of a guess.

[Brick Tamland]

John, do you think Neteller account qualifies under the reporting requirement? Obviously, a lot of us are in violation if it is. I have asked before, but never got even much of a guess.

good question!

[SBR_John]

Thats a very good question Laker.

I actually don't believe it is although I will have an official reply a little later. SBR is going to file a disclosure on Neteller this year but we did not in previous years.

[onlooker]

Thats a very good question Laker.

I actually don't believe it is although I will have an official reply a little later. SBR is going to file a disclosure on Neteller this year but we did not in previous years.

I will be waiting to here the official answer on this one. Thanks for looking into it John. Should be interesting to hear.