Foreign Interest Question

Hi Tax Gurus,
I have foreign accounts with total values less then $10K in
year 2005. One bank provided me with 1099INT and I do not
have 1099INT from second bank.

My questions are:
1. I need to claim that I have foreign account and total
value is less then 10K. In 1040, how do I calculate interest
on second bank and do I add this value along with other
INT1099 information after converting to US$ or need to put
this value some where else? I am confused where to report in
1040.

2. Do I need to send form to Dept. of Treasury even if the
total value of foreign banks is less then 10K?

Any suggestion/help is appreciated.
Thanks,
-A

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Reply to
Andy
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snipped-for-privacy@gmail.com (Andy) posted:
All interest should be reported on the Interest section (part 1) of Schedule B, and Yes, it should be shown in US dollars, with the name of the payer -- even if it is a foreign bank -- shown in the space provided to the left of the amount.
I know of no "form" needed to be sent to the "Dept of Treasury" -- other than your Form 1040 and associated documents, such as Schedule B for Interest and Dividends. At the bottom of the Schedule B, there are two questions to be answered either "Yes" or "No" -- both regarding your possession of Foreign accounts. From your post, I believe you should check the "Yes" box in each case. That will fulfill your total reporting requirements, AFAIK. Bill
Reply to
Bill
If the highest balance at anytime during the year in ALL foreign financial accounts amounts to more than $10,000, you are required to file Form TDF90-22.1 with the Treasury Department. This requirement can be more comprehensive that it sounds for at least three reasons. First, it is the highest balance at any time during the year, not the year-end balance that matters. One of my clients had to prepare the report one year because he transferred money to purchase some land to his foreign bank account before paying for the land. Second, the requirement covers financial accounts, not just bank accounts. So, if you have an account with a foreign stock broker, the balance in that account must be included. Third, the requirement applies to any accounts over which you have "signature authority," even if one or more accounts are not your own. I once had a client who was the SEAsia reagional manager for a large company. This company had bank accounts in many different countries. As regional manager, my client could sign checks on all these accounts. One year, his report included 74 different accounts! Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans
Reply to
L K Williams

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