Do i have to report off shore holdings to the IRS?

Best Answer

  • JerseyJoeJerseyJoe Posts: 2 Tin ✭
    Accepted Answer
    Ooops the IRS has the answer:
    Q4. I directly hold precious metals for investment, such as gold, in a foreign country. Do I need to report these assets on Form 8938?

    No. Directly held precious metals, such as gold, are not specified foreign financial assets. Note, however, that gold certificates issued by a foreign person may be a specified foreign financial asset that you would have to report on Form 8938, if the total value of all your specified foreign financial assets is greater than the reporting threshold that applies to you.

Answers

  • SpontaneousOrderSpontaneousOrder Posts: 267 Bronze ✭✭✭
    I disagree, and believe you DO have to file. @JerseyJoe is quoting from Basic Questions and Answers on Form 8938. "I directly hold" means (I believe) that the metal is stored in a safety deposit box or private vault box to which you (and only you) have direct access. Clearly you do not have direct, exclusive access to the vaults Goldmoney uses to store our metal.

    For another example, see Reporting Cash, Gold And Safety Deposit Boxes On FBARs? "If the safe deposit box can be accessed by a financial institution, ... or the financial institution provides insurance or other services for the contents within the safe deposit box, then the safe deposit box, and its contents, are more likely to be subject to U.S. income tax reporting and disclosure obligations." Goldmoney can access our metal in the vaults (indeed only they can) and DOES provide insurance on our stored metal. Note: this is an older article and doesn't reflect the move of the FBAR filing deadline to April 15th.

    Google "goldmoney fbar" for lots more articles - virtually all agreeing that goldmoney holdings are reportable on FBAR and Form 8938 (you'll have to skip over all of my previous forum posts on the subject!). If you should have filed in the past but did not, definitely consult an appropriate tax professional.

    Yes, it's an enormous P.I.T.A. but it is what it is. Ignore these forms at your peril. They nailed Paul Manafort for failing to file an FBAR.
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