Mail bag: Should I open an offshore bank account?

[SBR_John]

We get this alot from US citizens.. I am no expert, let me get that out up front.

My answer would be NO, unless you have a real reason and by that I mean a legit reason.

Before you open an account you should look at the Dept of Treasury form that you are required to file every year. Btw, this form is due yearly by June 30th!

The form is TD F 90-22.1

It requires your SS number, banks name, your offshore bank account number and your balance among other things.

Think you will just not file?

The penalty for not filing is a monster fine of $500,000.

Also, it is estimated your odds of an audit increase from 1 in 150 to 1 in 3 once you file TD F 90-22.1.

[JoshW]

John, I think I asked before on a lot of forums and never got an answer. Anyway players Neteller accounts fall under this law?

[SBR_John]

Excellent question Lakerfan. I'm not a tax attorney(obviuosly) but the way I read the form I would say NO. I think NT is in the category of an e-merchant and not a financial institution. I will try to get the SBR tax attorney to give us an opinion before the June 30 deadline. I will post it.