Tuesday, March 20, 2012
Can I legally hold more than $10,000 in euros without telling the IRS?
True, the IRS says “If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).” However, why use a foreign account at all (assuming you are not trying to dodge income taxes, which I would never recommend)?
One reason may be that you are losing confidence in the U.S. dollar. Despite the euro’s current problems, now may be a good time to buy euros. Or, you may decide that in the long run, the Canadian dollar is a better bet.
Another reason is that you may want to keep some money out of the hands of creditors, criminals, hackers and ex mates. In my e-book Invisible Money, I discuss various solutions (plus how to open a Canadian bank account, should you decide to go that route.)
So then—the answer to “Can I legally hold more than $10,000 in euros without telling the IRS?” is simple. Just buy the euros or loonies from the AAA, your bank, or from sellers on Craigslist, and keep the cash in the USA. The results are the same as if they were in a foreign account, are they not?
As to where to keep the cash, I recommend you check out Invisible Money.