More FBAR Stuff

Remember FBAR?  That nasty form that MUST be filed by June 30 each year for the previous calendar year?  Well, the US Treasury department is making it easier (?!) to file now.  Read this notice:

Effective July 1, 2013 – Electronic filing of FBARs is mandatory

E-filing is a quick and secure way for individuals to file FBARs. Filers will receive an acknowledgement of each submission. For more information about electronic filing, read the FinCEN news release . Help with electronic filing technical questions is available at BSAEfilinghelp@fincen.gov or through the BSA E-Filing Help Desk at 866-346-9478.

Now, you are not allowed to MAIL in the form.  Electronic filing is required.

Well, on the plus side, you won't have to worry about postage now.

Additionally, there is a provision to allow you to hire someone to file for you.

Details in another post.

Cheers.

Implementing FATCA

Here's a news flash gang!  FATCA implementation has been delayed for 6 months until July 1, 2014.  Who cares why they say, I think they are getting serious resistance, if for no other reason than the technical difficulty to comply.  FATCA is a deal killer and will have the unintended consequence of US Citizens being unable to do business internationally because foreign banks are so scared of the ramifications if they do it wrong.  Business people will not be able to get wire transfers in a timely manner, if at all, and deals will die.  Official estimates are that FATCA will gather $87 billion over a ten year period. Huh? That's $ 8.7 billion per year with the risk of bringing international trade to a dead stop.  What kind of impact will that have on an annual deficit of over $600 billion?  Exports from the US are over a trillion, yes trillion, dollars each year.  If that is damaged, not only will business suffer domestically but tax revenues will fall off by more than FATCA could ever gain. 

Special stuff for Chile

Just to let you know, I have the regulation in front of me as I type.

A “foreign eligible entity” is NOT an S.A. (Sociedad Anonima) for our purposes.

That means E.I.R.L.’s and Limitadas ARE “foreign eligible entities”.

Unless a Limitada elects to be a “pass-through” within 75 days of its formation, it is a partnership and all the foreign partnership rules apply.

If the owner of the EIRL does not have limited liability, the EIRL is disregarded by default and the owner doesn’t have to do anything.

I don’t know if the Limitada and EIRL designations provide limited liability.  If they do, then the elections would have to be made in a timely manner.

That’s good news.  Plus, the fact that Social Security has exempted US citizens and residents who are living in Chile, makes things a lot easier.