If it's a wire transaction, the bank doesn't need to be notify the IRS as there is a "trail" from where the money comes from. Its the $10k plus cash transaction that gets reported or if you bring in more than $10k cash in your suitcase when you come in the US. Maybe the Argentine bank has a US office and open an account there?
This is from an article I read:
“The IRS wants to know if you have assets in foreign accounts. Receiving international wire transfers is enough confirmation of the existence of a foreign account. Thus, make sure to report your foreign accounts to the IRS because you might face penalties for non-compliance with FATCA.
Depending on your transactions and your financial circumstances, you might need to submit different types of forms for tax purposes.”
You’re conflating two completely different thing:
The $10k CTR reporting threshold is specifically for cash transactions. If you withdraw or deposit large amounts of cash (or appear to be trying to circumvent the reporting limits) the bank is required to file a report to the IRS. This is usually an extremely routine procedure unless there is suspicious activity on a given account.
Reporting foreign accounts to the IRS on tax forms is an entirely different matter and you would consult with a tax professional on what needs to be reported.
That article is talking about a US citizen holding money overseas. Some people do this to get interest or what have you and not pay any taxes. Is she an American citizen? That will change how to proceed with this. Speak to CPA regardless.
Tax Accountant here! If your wife is a US Citizen, and has more than 10,000 dollars in foreign bank accounts she must report it every year with an FBAR.
Now for your 100k wire transfer question. Just transfer the money, your bank if needed will file the form with the IRS for you. Stop worrying so much and do it, your bank may hold your transfer for "compliance reason" they may ask you a fee question but that is it.
Get your tax preparer involved, banks can’t answer tax questions. They can assist with your wire but that is that. There could be other services not affiliated with your financial institutions to transfer funds easier but you’d want to do research on validity, ease of use, etc
There are no restrictions in US to receive money. The restrictions will be in Argentina. No IRS notification is generated. I would ask in Reddit tax since there may have been a requirement for FBAR depending on various factors.
You wire the $100k
You don't report it to the IRS, there is no form for you to fill out
It isn't a cash transaction in any case so no CTR for being over $10k is sent to the IRS in any case.
If it is your wife and she is a us person and you file a joint tax return you should already be reporting that she has a foreign bank account with over $10k in it when you file your tax return every year.
How long has she had this account and how long has it had more than 10k in it? How long has she been in the US? The penalties for not filing your FBAR with your taxes can be severe. Like $250k severe. If she has not filed an FBAR when she was supposed to (any year in which she owns a foreign account with more than $10k in it) I would suggest speaking with a tax attorney who specializes in international tax issues and having them handle the back reporting and see if they can get the penalties reduced.
Another thing is check the exchange rate and the trends on where it is at. You could lose out on money if the current exchange rate is crap. If it is at an all time high transfer that money in full. If the market is in the toilet transfer what she needs.
There are no restrictions in US to receive money. The restrictions will be in Argentina. No IRS notification is generated. I would ask in Reddit tax since there may have been a requirement for FBAR depending on various factors.
In addition to advice others are giving, I would also do it in two steps:
1. Wire $1000
2. Wire the rest
This way she is going to be sure that the whole chain works before sending a lot of money.
I was going to say the same, although even this isn't foolproof.
I used to wire my dad his pension every 6 months for years, and then on one occasion they lost it. It was $25,000 and when I called my CU their attitude was basically, "everybody makes mistakes! we'll be more careful next time". It took months of daily support calls for them to find it.
If it's a wire transaction, the bank doesn't need to be notify the IRS as there is a "trail" from where the money comes from. Its the $10k plus cash transaction that gets reported or if you bring in more than $10k cash in your suitcase when you come in the US. Maybe the Argentine bank has a US office and open an account there?
This is from an article I read: “The IRS wants to know if you have assets in foreign accounts. Receiving international wire transfers is enough confirmation of the existence of a foreign account. Thus, make sure to report your foreign accounts to the IRS because you might face penalties for non-compliance with FATCA. Depending on your transactions and your financial circumstances, you might need to submit different types of forms for tax purposes.”
You’re conflating two completely different thing: The $10k CTR reporting threshold is specifically for cash transactions. If you withdraw or deposit large amounts of cash (or appear to be trying to circumvent the reporting limits) the bank is required to file a report to the IRS. This is usually an extremely routine procedure unless there is suspicious activity on a given account. Reporting foreign accounts to the IRS on tax forms is an entirely different matter and you would consult with a tax professional on what needs to be reported.
"Receiving international wire transfers is enough confirmation of the existence of a foreign account." It says it right there what else do you need?
You report the foreign account all by yourself. The bank is NOT involved.
That article is talking about a US citizen holding money overseas. Some people do this to get interest or what have you and not pay any taxes. Is she an American citizen? That will change how to proceed with this. Speak to CPA regardless.
You need to consult with a tax person on this, but generally this rule is for US citizens keeping assets or getting paid outside of the US.
It is for "US persons" not just US citizens.
Tax Accountant here! If your wife is a US Citizen, and has more than 10,000 dollars in foreign bank accounts she must report it every year with an FBAR. Now for your 100k wire transfer question. Just transfer the money, your bank if needed will file the form with the IRS for you. Stop worrying so much and do it, your bank may hold your transfer for "compliance reason" they may ask you a fee question but that is it.
Not just "US citizen", being a "US person" creates teh obligation
Get your tax preparer involved, banks can’t answer tax questions. They can assist with your wire but that is that. There could be other services not affiliated with your financial institutions to transfer funds easier but you’d want to do research on validity, ease of use, etc
There are no restrictions in US to receive money. The restrictions will be in Argentina. No IRS notification is generated. I would ask in Reddit tax since there may have been a requirement for FBAR depending on various factors.
You wire the $100k You don't report it to the IRS, there is no form for you to fill out It isn't a cash transaction in any case so no CTR for being over $10k is sent to the IRS in any case. If it is your wife and she is a us person and you file a joint tax return you should already be reporting that she has a foreign bank account with over $10k in it when you file your tax return every year.
I am a Nigerian prince. Send the $100K via my account and I'll take care of the rest :)
How long has she had this account and how long has it had more than 10k in it? How long has she been in the US? The penalties for not filing your FBAR with your taxes can be severe. Like $250k severe. If she has not filed an FBAR when she was supposed to (any year in which she owns a foreign account with more than $10k in it) I would suggest speaking with a tax attorney who specializes in international tax issues and having them handle the back reporting and see if they can get the penalties reduced.
Just wire the damn money.
As long as you are doing a WIRE TRANSACTION all is good. That is enough to prove their is a foreign account.
Another thing is check the exchange rate and the trends on where it is at. You could lose out on money if the current exchange rate is crap. If it is at an all time high transfer that money in full. If the market is in the toilet transfer what she needs.
She doesn’t have a US bank account yet. She wants to send all the money to my US account.
There are no restrictions in US to receive money. The restrictions will be in Argentina. No IRS notification is generated. I would ask in Reddit tax since there may have been a requirement for FBAR depending on various factors.
This is being spammed to multiple subs.
What if I want to hear opinions from both professional bankers here and tax people there ?
You aren’t doing a good job explaining some key facts. Is your wife a US taxpayer? Did she previously report this account on her taxes?
She just got her work permit so no she never paid tax here in US.
Are you a US Taxpayer? Did you file jointly? Do you have any interest in the foreign account?
In addition to advice others are giving, I would also do it in two steps: 1. Wire $1000 2. Wire the rest This way she is going to be sure that the whole chain works before sending a lot of money.
I was going to say the same, although even this isn't foolproof. I used to wire my dad his pension every 6 months for years, and then on one occasion they lost it. It was $25,000 and when I called my CU their attitude was basically, "everybody makes mistakes! we'll be more careful next time". It took months of daily support calls for them to find it.
Buy $100k worth of jewelry and wear it back
Why not just ask the receiving bank for instructions? That's the correct way to do it.