If you are on someone else’s account

In almost ever voluntary disclosure program application we have going, and in almost every person we consult with, there is a recurring item: there are people who have signature power over the account, but who don’t own the money.

• Children are added to their parents’ accounts;
• Husband and wife are on an account together; or
• Business accounts have the CFO or controller with signature power.

All of these people — if they are U.S. residents — have the requirement to file Form TD F 90-22.1. All of them should do SOMETHING before the amnesty window closes on October 15, 2009.

You have two options — use the FAQ #9 way to clean things up, or enter the full amnesty program.

The FAQ #9 process as part of the voluntary disclosure program for undeclared bank accounts — it will work in situations like this, and we have successfully done it and have the closing letters to prove it.

However. You better be REALLY sure about FAQ #9 if you use it. In speaking with the Supervising Special Agent of one of the offices where (forgive me) we are doing Box Office business, he pointed out that if there turns out to be even one dollar of tax liability, you’ve blown yourself out of the water for FAQ #9 relief, and you’ve blown the deadline for the full amnesty program.

I am writing about this again because I received an email from someone I know who brought this up. He only recently understood that this situation applies to him.

Children (living in the U.S.) are frequently put on bank accounts overseas, where the parents still live in the home country. This is for simple convenience and estate planning. Unfortunately, the IRS currently has a “death penalty for paperwork error” mentality currently running rampant at the top levels in Washington DC. Better to file the Form TD F 90-22.1 and keep calm.

Phone calls. +1-626-689-0060 extension 1 for me on landline. +1-626-437-2500 for me on my mobile. Give me a shout. Let us help you out with this stuff.