Mexico Connect
Forums  > General > Living, Working, Retiring
First page Previous page 1 2 Next page Last page  View All


aglaonema

Jul 10, 2016, 8:11 AM

Post #26 of 32 (2700 views)

Shortcut

Re: [skier14] Current info on opening bank account in Mexico

Can't Post | Private Reply
It seems that the requirement is to report deposits totaling more than $10K and/or any interest earned.
The requirement to report the existence of any account held by an American is for the bank, not the depositor.
We don't see any danger for you, but it would be interesting to hear from other posters why they think you would need to report an account with low balances.


YucaLandia


Jul 10, 2016, 8:27 AM

Post #27 of 32 (2696 views)

Shortcut

Re: [skier14] Current info on opening bank account in Mexico

Can't Post | Private Reply

In Reply To
I would be interested to know what kinds of bank accounts are being discussed. I have had an account with Banamex for quite a few years. I remember the account person telling me that reporting to IRS was done if the account was more than $10,000 USD. I have never had more than $1-2 thousand at one time and usually fluctuates between hundreds of pesos to 25,000 pesos. When I was involved with Banamex-USA is when I might have had a couple of $1,000 transfers on successive days, which is no more. As far as I know, I draw 0 interest. Do you think I'm danger of problems with IRS?

.

You have no danger of problems with the IRS, because you chose a bank that has cut it's ties with operations in the USA.

Under the USA's 'Know Your Client' laws, ... under the US Treasury Dept's laws, ... under US banking (Commerce Dept) laws: Mexican Banks with US operations MUST have their clients fill out some combination of W9 and possibly W8BEN IRS forms for all their US citizen clients.

This goes back to the points made above about the benefits of using smaller Mexican banks, who have no big international obligations, because they do not operate in the USA.

Readers should ignore the mistaken-advice that there are somehow (magically) no obligations if a US citizen has less than $10,000 USD total in overseas accounts.

People who doubt this can remember all the gringo posts from June-July of 2014, howling about how either:

~ their US bank terminated their accounts (due to living outside of the USA)

or
~ their Mexican bank (with US operations) forced them to fill out a W9 and sometimes a W8BEN.

A Mexican bank with US obligations who has not yet forced us to fill out the IRS forms, may just not have noticed us... as HSBC did not ask me to fill them out until just 1 month ago ... triggered by an HSBC acct rep checking our account for another problem.

Happy Trails,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Jul 10, 2016, 8:30 AM)


DavidHF

Jul 10, 2016, 8:48 AM

Post #28 of 32 (2689 views)

Shortcut

Re: [YucaLandia] Current info on opening bank account in Mexico

Can't Post | Private Reply
https://www.irs.gov/...requirements-in-june


(This post was edited by RickS on Jul 10, 2016, 8:53 AM)


joaquinx


Jul 10, 2016, 10:30 AM

Post #29 of 32 (2678 views)

Shortcut

Re: [YucaLandia] Current info on opening bank account in Mexico

Can't Post | Private Reply

In Reply To
Readers should ignore the mistaken-advice that there are somehow (magically) no obligations if a US citizen has less than $10,000 USD total in overseas accounts.

People who doubt this can remember all the gringo posts from June-July of 2014, howling about how either:

~ their US bank terminated their accounts (due to living outside of the USA)

or
~ their Mexican bank (with US operations) forced them to fill out a W9 and sometimes a W8BEN.


The only bank that I was aware of was Banamex USA which was involved in money laundering and are now out of business.

Filling out a W9 or W8BEN is not a great burden. I took half and hour for me to fill out the W9
_______
My desire to be well-informed is currently at odds with my desire to remain sane.


mcm

Jul 10, 2016, 12:28 PM

Post #30 of 32 (2670 views)

Shortcut

Re: [skier14] Current info on opening bank account in Mexico

Can't Post | Private Reply
You are fine -- the only place that you report the specific accounts is on the FBAR report which, as you correctly understand, is ONLY REQUIRED IF THE TOTAL BALANCE OF ALL YOUR FOREIGN ACCOUNTS IS MORE THAN 10,000 AT ANY TIME IN A CALENDAR YEAR.

However, if you file a US income tax report (which many retirees do not need to do, because their income is largely from social security and they fall below taxable income levels), you will be asked on Schedule B if you had signing authority on any foreign account. Here you would indicate ''yes'', but give no information about the account. Again, you would only need to do more if the aggregate balance exceeded 10,000 in any given calendar year.

Additional note: even if you do not file with the IRS (due to being below taxable income requirements), you would still need to file an FBAR report if your foreign bank accounts balances exceed 10,000 dollars.

All that said, this just isn't a big deal. It takes a few minutes to fill out and electronically file the FBAR report. If your Mexican bank wants you to fill out a W9, that is also very quick and simple (as others have said).


skier14

Jul 10, 2016, 12:51 PM

Post #31 of 32 (2669 views)

Shortcut

Re: [joaquinx] Current info on opening bank account in Mexico

Can't Post | Private Reply
Thanks. I'm just in survival mode.


YucaLandia


Jul 10, 2016, 4:21 PM

Post #32 of 32 (2654 views)

Shortcut

Re: [DavidHF] Current info on opening bank account in Mexico

Can't Post | Private Reply

In Reply To


FATCA & FBAR are different from the US govt requirements that drive W9 filings and Know Your Customer US Govt. laws.

The Patriot Act required US banks in 2003 to set up Customer Identification Programs (CIPs), to verify the identity of individuals wishing to conduct financial transactions

The CIP is incorporated into the bank's Bank Secrecy Act/Anti-money laundering compliance program...

... which have nothing to do with DavidHF's referenced FATCA & FBAR requirements.

The earlier too-big post (above) describes how the 4 different US govt programs work.

messy messy messy stuff,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com
First page Previous page 1 2 Next page Last page  View All
 
 
Search for (advanced search) Powered by Gossamer Forum v.1.2.4