IRS to Issue New Foreign Asset Report Form 12/15/2011

[Papster]

IRS to Issue New Foreign Asset Report Form

12/15/2011

from Eagle Has Landed

CAVEAT: It has not been determined if this applies to foreign currency held by a US citizen holding the foreign currency in the United States or if this is solely to report a foreign asset situated in another country.

I am posting for informational purposes only. Please consult a qualified tax attorney, cpa, or other tax adviser to assist you with all of your tax matters.

==============================

IRS to Issue New Foreign Asset Report Form

http://www.accountingtoday.com/news/IRS-Issue-New-Foreign-Asset-Report-Form-61137-1.html

DRAFT COPY of new form:

http://www.irs.gov/pub/irs-dft/f8938--dft.pdf

=================================

INSTRUCTIONS for Form 8939

http://www.irs.gov/pub/irs-dft/i8938--dft.pdf

================================

IRS releases guidance on foreign financial asset reporting

http://www.irs.gov/irs/article/0,,id=251216,00.html

[cbs71]

how timely....

[skitealwedrop]

how timely....

Ditto.

[fastarnie]

Hopefully another sign.

[Bigchclte]

Lol Cbs and Ski, imagine that!! Plus one for both.

[steveinfla]

IRS to Issue New Foreign Asset Report Form

12/15/2011

from Eagle Has Landed

CAVEAT: It has not been determined if this applies to foreign currency held by a US citizen holding the foreign currency in the United States or if this is solely to report a foreign asset situated in another country.

I am posting for informational purposes only. Please consult a qualified tax attorney, cpa, or other tax adviser to assist you with all of your tax matters.

==============================

IRS to Issue New Foreign Asset Report Form

http://www.accountingtoday.com/news/IRS-Issue-New-Foreign-Asset-Report-Form-61137-1.html

DRAFT COPY of new form:

http://www.irs.gov/pub/irs-dft/f8938--dft.pdf

=================================

INSTRUCTIONS for Form 8939

http://www.irs.gov/pub/irs-dft/i8938--dft.pdf

================================

IRS releases guidance on foreign financial asset reporting

http://www.irs.gov/irs/article/0,,id=251216,00.html

YES DO NOT TAKE TAX ADVICE FROM A FRIEND!! More times I have seen guys end up in deep doggie poop because a friend of his brother inlaw said.... A small consultation fee will save you a$$

Edited December 15, 2011 by steveinfla

[nemesis760]

IRS to Issue New Foreign Asset Report Form

12/15/2011

from Eagle Has Landed

CAVEAT: It has not been determined if this applies to foreign currency held by a US citizen holding the foreign currency in the United States or if this is solely to report a foreign asset situated in another country.

I am posting for informational purposes only. Please consult a qualified tax attorney, cpa, or other tax adviser to assist you with all of your tax matters.

==============================

IRS to Issue New Foreign Asset Report Form

http://www.accountingtoday.com/news/IRS-Issue-New-Foreign-Asset-Report-Form-61137-1.html

DRAFT COPY of new form:

http://www.irs.gov/pub/irs-dft/f8938--dft.pdf

=================================

INSTRUCTIONS for Form 8939

http://www.irs.gov/pub/irs-dft/i8938--dft.pdf

================================

IRS releases guidance on foreign financial asset reporting

http://www.irs.gov/irs/article/0,,id=251216,00.html

Way around from IRS itself:

II. Interim Guidance

Individuals with reporting requirements under section 6038D may have to file an

income tax return for a taxable year before the IRS releases Form 8938. This notice

suspends the requirement for these individuals to attach Form 8938 to income tax

returns that are filed before the release of Form 8938.

note 6038D refers to: "any individual who during the taxable year

holds an interest in any specified foreign financial asset"

My link

Edited December 15, 2011 by nemesis760

[cbs71]

Lol Cbs and Ski, imagine that!! Plus one for both.

[EGP]

I downloaded these forms to have on file and ask my accountant later. Thanks!

So, does this mean we must report any and all foreign currency we hold in our possession this year (and years prior), even though this draft form is not officially out yet?

Just wondering. What do you all think?

[Carrello]

Hopefully another sign.

I agree, Fast Arnie. This is a wonderful, positive sign, if it in fact is directed and motivated by the IQD revaluation. For the amount of money we may make, and other than a small investment, a few cases of Two Buck Chuck, a box of Flex Straws, and a bottle of aspirin, this is almost free money. The taxes I pay, I will do with a smile.

48% of Americans are living at or below the poverty line. What could any of us be complaining about?

A few will run around with their hair on fire, screaming about the socialist government, blah blah, and you don't even know exactly what this is about or if it will happen.

Have fun at that party. Hand held fireworks start at sundown, and don't drag them on the ground.

Edited December 15, 2011 by Carrello

[cbs71]

I downloaded these forms to have on file and ask my accountant later. Thanks!

So, does this mean we must report any and all foreign currency we hold in our possession this year (and years prior), even though this draft form is not officially out yet?

Just wondering. What do you all think?

IMO, definitely for currency that was bought in 2011. Again, this is something that you will have to discuss with your tax preparer, tax attorney or any other qualified person who can do taxes and is knowledgeable about the system.

[hi-five]

I will be interested to find out if this requirement applies to foreign currency. If it does, what it COULD mean is that regardless of when we cash in, we may be required to pay taxes on the VALUE of the foreign financial asset we possess. Before, under the currency tax laws, I understood that I was to pay the tax in the year I cashed in my Dinar. Meaning, I could cash in some in 2012 - - pay taxes on that amnt. in 2012, then cash in some in 2013 - - and pay the taxes on that amnt in 2013 and so on.

So, IF the value of foreign currency is to be included in this new tax law, It could be that we will be required to pay taxes on the entire value of our Dinar in the year it revalues, even though we may choose to only cash in some this year, and some the next, etc.

[Psych]

Just to be clear....we are not paying any taxes on our current IQD, unless it revalues....unless you currently own A LOT.

[unirod]

I will be interested to find out if this requirement applies to foreign currency. If it does, what it COULD mean is that regardless of when we cash in, we may be required to pay taxes on the VALUE of the foreign financial asset we possess. Before, under the currency tax laws, I understood that I was to pay the tax in the year I cashed in my Dinar. Meaning, I could cash in some in 2012 - - pay taxes on that amnt. in 2012, then cash in some in 2013 - - and pay the taxes on that amnt in 2013 and so on.

So, IF the value of foreign currency is to be included in this new tax law, It could be that we will be required to pay taxes on the entire value of our Dinar in the year it revalues, even though we may choose to only cash in some this year, and some the next, etc.

This is just another reason why my LLC is going to own all of my Dinar.

[fastarnie]

I agree, Fast Arnie. This is a wonderful, positive sign, if it in fact is directed and motivated by the IQD revaluation. For the amount of money we may make, and other than a small investment, a few cases of Two Buck Chuck, a box of Flex Straws, and a bottle of aspirin, this is almost free money. The taxes I pay, I will do with a smile.

48% of Americans are living at or below the poverty line. What could any of us be complaining about?

A few will run around with their hair on fire, screaming about the socialist government, blah blah, and you don't even know exactly what this is about or if it will happen.

Have fun at that party. Hand held fireworks start at sundown, and don't drag them on the ground.

I will be very happy to be able to pay taxes on this investment, and never look back.

[skitealwedrop]

This is just another reason why my LLC is going to own all of my Dinar.

Your LLC should own the Dinar now. You should think clearly as to how your going to book that asset. Be careful.

[ExecConsult]

For those of you who do not yet know me, my name is Mark. I'm an estate planning attorney. On my listserve we have been discussing form 8939 and the reporting requirements for quite a while now. I even have access to a webinar on the topic. However, I never thought to mention it to my fellow dinarians. Why, you ask? Because it does not apply to most of us.

The purpose of the form and the law behind it is to better capture those assets people are HOLDING IN FOREIGN COUNTRIES. Most of us are holding our assets in the U.S. and even purchased them from a U.S. dealer.

Unless you have a Warka account or other substantial holdings outside of the U.S., you should not worry about that form. It does not affect your Dinar holdings in the U.S. You are not holding foreign assets. You are holding U.S. domesticated assets that you just happened to originate from a foreign country.

Best of Blessings,

Mark

Hi-Five posted:

I will be interested to find out if this requirement applies to foreign currency. If it does, what it COULD mean is that regardless of when we cash in, we may be required to pay taxes on the VALUE of the foreign financial asset we possess. Before, under the currency tax laws, I understood that I was to pay the tax in the year I cashed in my Dinar. Meaning, I could cash in some in 2012 - - pay taxes on that amnt. in 2012, then cash in some in 2013 - - and pay the taxes on that amnt in 2013 and so on.

So, IF the value of foreign currency is to be included in this new tax law, It could be that we will be required to pay taxes on the entire value of our Dinar in the year it revalues, even though we may choose to only cash in some this year, and some the next, etc.

Following that unirod said:

This is just another reason why my LLC is going to own all of my Dinar.

Unirod - that makes me wonder what you think your LLC will do for you. I know there has been a lot of incorrect information floating around about being able to avoid taxes with an LLC. If that is what you were thinking, that information was not portrayed in a clear way and is misleading. Simply having an LLC does not give you many tax advantages with relation to a foreign currency investment income. If you would like to discuss this further, I'd be happy to. I'd like to make sure people have correct information.

Best of Blessings,

Mark

[Caye98]

Tim Geithner uses Turbo Tax...if its good enough for the Secretary of the Treasury and head of the Federal Reserve...

...Oh, wait, he did have some issues...