Originally Posted by
Often1
You need to talk with a US tax attorney. As a starting point, they will need to know whether, as a USN, you have reported your foreign bank account (FBAR). Don't take anecdotal advice on FT about what did or did not happen in the past.
(I have almost no personal experience or knowledge in this area, so do not trust me).
The primary point of my post is: What is the going rate for "talking to" a US tax attorney familiar with these matters (I add that last part because I am friends with a US-based tax attorney who works for a state GV'T who is about as clueless about this as I am.) If the cost of talking to a competent lawyer is more than the maximum taxes/fees/etc., then why bother? Unfortunately, discovering the size of the maximum loss due to a properly declared transfer of monetary instruments may be quite difficult (and costly).
Need is a strong word. If the OP acquired that money at a $25,000 per year (salary per annum), then, AFAIK things are probably fine (as long as the declarations are filled out). If the money was earned trading financial instruments/gambling over a 1 day period, maybe not. (I repeat: do not trust me).
How much does it cost to consult a US tax attorney? At some point the cost of a simple, if foolish (e.g not using an easy work-around) mistake is cheaper than the cost of the advice necessary to avoid the mistake.
As a tax-paying American (johndoe123: have you paid income, etc. taxes to the US?) what is the maximum loss to that the OP could be subject to if he/she properly declared everything? How does that compare to the cost of legal advice?
Whatever you do, BE HONEST (but not blabber with unnecessary details).
Let me repeat: I have little real experience or knowledge in this area, so do not trust me (except the part about not providing false information to the Feds).