The Yucatan Times:
WASHINGTON, D.C. — United States authorities have begun the exchange of information with Mexico on all Mexicans with bank accounts or investments in the U.S. who have obtained more than $10 USD in annual interest…
Mexico will provide the IRS the name, address and tax number of Americans with accounts whose balance is greater than $50,000 USD, the account number, the monthly balance and the amount of interest paid.
>more than $10 USD in annual interest
Wow that’s a bit brutal. That’s the limit for domestic accounts or there about’s. Unlike the reporting from Canada that would seem to have the potential to pull in huge numbers of people. There tax bill will be low but their penalties huge.
Is this how the IS defines “reciprocity”?
“The IRS will provide to Mexico the name, address and tax identification number of residents of Mexico with accounts or investments in the US that have obtained at least $10 USD in interest on the previous or current year. The program is not retroactive.
IRS also will deliver the account number or equivalent, the name of the depositary institution, the amount of interest paid, the amount of dividends or income received or credited in the United States and the source of other resources of Mexican residents.”
So will this be the reciprocal agreement claimed by the IRS to exist with Canada?
The IRS will provide to Canada the name, address and tax identification number of residents of Canada with accounts or investments in the US that have obtained at least $(?) USD in interest on the previous or current year. The program is not retroactive.
IRS also will deliver the account number or equivalent, the name of the depositary institution, the amount of interest paid, the amount of dividends or income received or credited in the United States and the source of other resources of Canadian residents.
If FATCA only collected inf. on Americans living in the US with accounts in Canada, this would be reciprocity.
The problem with all this is the Mexicans who are here with a bank account have never had to tell their nationality, so the American banks assume they are American and the Mexican banks and Mexican government are so crooked and overworked with Drug money deposits they will never accurately do anything. The Marxist Income tax screams out to be evaded and every American politician knows it,but will not go to the FairTax because of the ability to extort campaign contributions, is their way to keep getting re elected at a 95% rate when their approval rating is under 10%. Go figure. The challenger hasn’t a chance, because the house member will spend millions for a job that pays 140,000 a year.
Mexico is also top number of expats per wikipedia for a single country.
European Union – 800,000 (2013; all EU countries combined)
Mexico – 738,203 (2010)
Canada – 311,215 (2011)
Philippines – over 300,000
Israel – 185,000
Italy (EU) – 170,000 to 200,000
United Kingdom (EU) – 158,000 (2013)
South Korea – 130,000 (2013)
Germany (EU) – 107,755 (2013)
France (EU) – 100,619 (2008)
Brazil – 98,000 up to 350,000 (See also Confederados, descendants of post-war Confederate settlers in Brazil)
Australia – 90,100 (2011)
Japan – 88,000 (2011)
Dominican Republic – 82,000
China – 71,493 (2010, Mainland China only))
Spain (EU) – 63,362
Colombia – 60,000
Hong Kong – 60,000
United Arab Emirates – 40,000
Republic of China (Taiwan) – 38,000
Belgium (EU) – 36,000
Saudi Arabia – 36,000
Switzerland – 32,000
Poland (EU) – 31,000 to 60,000
Lebanon – 25,000
Panama – 25,000
New Zealand – 17,748 (2006)
Sweden (EU) – 16,555 (2009)
Austria (EU) 15,000
Hungary (EU) – 15,000
Singapore – 15,000
Netherlands (EU) – 14,100 (2000)
Ireland (EU) – 12,475 (2006)
Argentina – 10,552
Chile – 10,000
Costa Rica – 9,128 to 50,000
Denmark (EU) – 8,651 (2012)
Norway – 8,013 (2012)
Malaysia – 8,000
Guatemala – 5,417 (2010)
Pakistan – 5,000
Uruguay – 3,000
Portugal (EU) – 2,228 (2008)
Russia – at least 2,008 up to 6,200
Syria – n/a (in the 1975 Encyclopædia Britannica, 2.5% of Syrians reportedly have dual U.S.-Syrian citizenship)
India – n/a est. 10,000 to 15,000
So are we looking at tax years 2013 and 2014 to be given to our countries of residence? Are they getting these from the 1040’s and not from the banks? I am going to be in hot water because I was on my 90 year old father’s accounts!! I am now off but was on them as “joint”until May 2015 (just to help him out and now it is going to kill me financially!!) These accounts earned around 12 dollars!!
So if I am understanding this correctly it’s just the duals who are going to get blasted by the reciprocity since they have to state on their 1040’s they live in x country but still have a bank account in the US (maybe just for family reasons!!)
Two different criteria being used. Keep $1 million is a US account that pays no interest, or stocks that pay no dividends, and nothing gets reported to Mexico. I woudbet that Mexicans simply give up 0.05% interest on $1 million ($500) at today’s near zero rates, and it’s a small price to pay for US bank secrecy.
A news article from the online edition of El Universal concerning the exchange of banking information between Mexico and the U.S. I wrongly thought legislation in the US enabling the collection and transfer of such information did not exist.