If you transfer money from foreign bank to domestic bank do you have to pay taxes in usa if you paid taxes on the income in your foreign company?

Question

if you do not report foreign income are the penalties back dated if you were notified by your foreign bank to report it to the US? If you transfer money from foreign bank to domestic bank do you have to pay taxes in usa if you paid taxes on the income in your foreign company?

Answer 1

Hello Rina,

Your question needs a lot more information for a complete answer. For example, who sent the money, and who earned the cash, etc? However, here are a few general guidelines.

If you are an American living in a foreign country, you might qualify for a foreign-earned income exclusion. The exclusion is based on the period you lived in your foreign home. Certainly if you are an American living in the US, the assumption is that taxes were paid in the US when the money was earned.

No taxes are due on gifts sent to a US person from a foreign sender. However, fines or penalties could be assessed for not filing the required form to report the gift.

I hope that was helpful.

Sincerest Regards,

Joe D.