Uruguay Obligations for US Owners of Uruguayan Bank Accounts | FBAR Tax Lawyer Montevideo
Hello and welcome to Sherayzen Video Blog. My name is Eugene Sherayzen and I’m an international tax attorney and owner of Sherayzen Law Office, Ltd.
Today, I’m continuing a series of blogs from Montevideo, Uruguay. I’d like to draw your attention in this blog to the fact that a lot of US taxpayers, who utilize Uruguayan consult – they often focus only on their Uruguayan tax compliance and they keep forgetting about the important US international tax reporting requirements that may apply to the new business structures that they create through with the help of Uruguayan tax consults. One of the first and foremost things you must remember is that if you organize an Uruguayan corporation and open a bank account in Uruguay or outside of Uruguay but not in the United States, then you will have to report your indirect ownership of the account on FBAR and possibly other forms, depending on what exactly happens in these accounts but FBAR would be the main form that you would have to contend with.
The FBAR is obviously a form that is highly important; it has tremendous draconian IRS penalties. You want to make sure that you comply with the form and it’s very easy to trigger this form. You just need to have a highest balance in excess of $10,000 at any point during the year and we’re talking about aggregate assets; so if you have two accounts, you have to figure out the highest balance for both accounts, add them up and you will see if you are required to file FBAR.
If this is a corporation which you own jointly with someone else and you don’t have the majority ownership over the corporation then, you have to look at whether you have signatory authority over the corporate accounts and if you do, then you also have to disclose that signatory authority on FBARs.
In the next blog, I will continue talking about US international tax reporting requirements concerning Uruguayan tax planning for US taxpayers.
Thank you for watching, until the next time.
