Cambodia on alert for US taxpayers

[PSD_Kiwi]

Read full article here... http://m.phnompenhpost.com/business/cam ... ign=buffer

With the Internal Revenue Service (IRS), the tax-collection arm of the United States government, stepping up its global sweep to catch American individuals and corporations hiding their overseas earnings, the American Chamber of Commerce in Cambodia yesterday held a presentation for investors and financial institutions to make sure they are in compliance with US tax laws so as to avoid the discomfort of an IRS probe.

Legal experts and banking officials warned of the strict penalties for US taxpayers and onerous standards on local banks outlined in the Foreign Account Tax Compliance Act (FATCA). The US tax legislation, which Cambodia has implemented since 2014, requires foreign financial institutions to hand over data on the identity and assets of US citizens and business interests to the US Treasury Department.

“If foreign financial institutions have American bank account holders, or are dealing with a potential US taxpayer, they are required to report to the IRS,” explained Joseph Lovell, a senior legal counsel at regional law firm Sciaroni and Associates.

Failure to adequately report has myriad consequences that can include a foreign bank withholding 30 percent of the payments for an individual or corporation, and thousands of dollars worth of fines, he added.

[Phuket2006]

had to come, u want the US $$$ u do what they ask/say
so, open an account the bank reports ya and over $10,000 in ALL OVERSEAS accounts COMBINED, you need file

[GB8]

Wing suspended my account due to my failure to provide forms for the IRS. Account total-$5.36. I hope the IRS doesn't find out about the $1 left in Canadia 8 years ago.

[salvajeuno]

IMHO: Since the U.S. government has an agreement with Cambodia ( reporting of any US citizens with
bank accounts, etc. ) it would be prudent to report this on the Schedule B form.

Below is IRS Schedule B / Interest and Ordinary Dividends:
Two important questions of this Schedule: first, did you have any bank accounts, etc?
and secondly, if so, did the combined total of all accounts exceed $10,000.00 at anytime during the year.

IRS / Schedule B - Part III -
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a
foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.

7a At any time during 2014, did you have a financial interest in or signature authority over a financial
account (such as a bank account, securities account, or brokerage account) located in a foreign
country? See instructions . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial
Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114
and its instructions for filing requirements and exceptions to those requirements . . . . . .
b If you are required to file FinCEN Form 114, enter the name of the foreign country where the
financial account is located____________________________________________________
8 During 2014, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520. See instructions on back . . . . . .