Bank Safes Vaults
Bank Safes Vaults
Offshore gold bullion investments & irs bank account reporting requirements
Being an offshore financial consultant I have learned that the majority of my readers have become involved in international banking. This being true many of these same people are now purchasing gold.
Naturally, they are pursuing this course of action to protect themselves against the devaluation of fiat currencies such as the dollar. Without a doubt, the most frequent question being asked concerning this matter is: ”Do I have to report gold stored offshore to the IRS on the FBAR (Foreign Bank Account Reporting) form?” Indeed, this is an excellent question for avoiding trouble with the US Government.
American gold buyers are not the only people concerned about this issue. Many non-US residents are asking the same question. Why? Their native countries, most likely, have some type of gold reporting regulations and they don’t want to disobey the law and create a problem for themselves.
Therefore, make sure you diligently check out the gold reporting requirements in the country where you file your tax returns. Never assume that any two countries have the same filing rules — they can vary drastically from country to country.
Concerning the US , the so-called IRS - FBAR requirements refer to the requirements of the “Foreign Bank and Financial Account Reporting Form.” The IRS document that must be completed is called form TD F 90-22.1. Presently, under existing U.S. tax code, all US taxpayers are required to file this form if they have a monetary interest or signature authority on a foreign financial account that has a combined value of over $10,000, at any time, in a 12-month period. Naturally, this not only includes U.S. citizens but also includes all alien residents, domestic partnerships, domestic corporations or domestic estates.
Although this same question is continually asked and answered correctly, the asset protection guru, Mark Nestmann, recently addressed it. In his article entitled “Are Precious Metals Stored Offshore Reportable Financial Accounts?” Nestmann states that presently tax authorities “construe the term ‘financial account’ very broadly. The definition unquestionably includes bank accounts, securities, and other accounts that hold financial instruments. However, it does not include individual bonds or stock certificates.”
The bottom-line question for us is whether physical gold bullion that is stored in an offshore vault (or holding gold anywhere offshore) is reportable. So, as of today, the IRS has not given clear instructions on this issue. Therefore, it appears best to keep a low profile and not ask any more questions. Yet, inquiring of a qualified tax attorney may be helpful, but will he truly understand your offshore situation?
Furthermore, at the end of the day, Nestmann has concluded “If you hold the metals in a safety deposit box or private vault, without opening a bank or other financial account, you don’t appear to have any reporting obligation.” Though these are very favorable words, be aware that many offshore banks demand that you open an account in order to rent a safety deposit box. Of course, to avoid filing the FBAR form you must keep the account-balance under the $10,000 FBAR reporting requirement. Obviously, this is only a solution for the small gold investor.
But, there is another way to skin this cat. There are several non-bank safe deposit facilities located in Austria , Switzerland and the Caribbean . Details for these facilities can be found on the Internet.
By Jack Godwyn
Ref: REWRITE#4 IRS Forgn Bk Acct Reptg Reqmts for Offs. Bullion Invmts
About the Author
Writer Jack Godwyn is acknowledged as a leading writer on offshore banking and asset protection matters. He has written many articles covering freedom, wealth protection and privacy issues.
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Al Capone’s Vault