Another interesting read I came across over the long holiday weekend had to do with U.S. government reporting requirements for gold and currency stored in overseas vaults- a subject I’ve blogged about before on several occasions. Michael DeBlis III, a criminal defense attorney specializing in criminal tax defense, published a piece entitled “What You Need To Know About Storing Gold And Cash Notes In An Offshore Vault” on the TaxConnections website last Friday. DeBlis wrote:
As has become obvious, the IRS has stepped up its efforts to curb non-disclosure of offshore assets and underreported income by U.S. taxpayers. Tax compliance has risen to the top of the IRS agenda, and with widely publicized alerts from the IRS, claims of ignorance of the law aren’t like to go very far.
Contrary to popular belief, not all foreign assets owned by U.S. taxpayers must be disclosed. This blog provides guidance on tax compliance for U.S. taxpayers who store gold and currency cash notes abroad in private vaults – a popular investment these days considering the uncertain global economy and the sharp declined in currency values…
DeBlis went on to discuss:
• FBAR, Report of Foreign Bank and Financial Accounts
• The term “financial account”
• The term “foreign financial institutions”
• Whether a vault located within an FFI is a financial account, and the ramifications for reporting
• Whether a private vault could be considered a bank
• Form 8938, Statement of Specified Foreign Financial Assets
• His take on the reporting requirements for gold and currency stored in a vault in an FFI
Like I said- an interesting read. Even more so if you digest what DeBlis had to say at your own speed (slow for me, thank you).
“What You Need To Know About Storing Gold And Cash Notes In An Offshore Vault” can be viewed in its entirety here on TaxConnections.com.
By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)
(Editor’s note: A qualified professional should be consulted regarding this subject. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/editor of this site is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)