A. JUST GOT YOUR E-MAIL ABOUT TRANSFERING OF FUNDS. YOUR
E-MAILS ARE VERY INFORMATIVE. IN MAY OF THIS YEAR I CLOSED OUT
MY ACCOUNT IN NEW YORK STATE THAT I HAD THERE WHILE I WORKED IN
THE STATE FOR 40 YEARS. I COMUTED FROM CANADA WHERE I HAVE
LIVED FOR 40+ YEARS. I AM A US CITIZEN. RETIRED FOR 2 YEARS.
THAT IS THE REASON I TRANSFERED THE FUNDS(69000). READ YOUR
E-MAIL AND WAS I SURPRISED. NOW HOW DO I RECTIFY THIS PROBLEM?
IN MAY MY FINANCIAL ADVISERS AT THE CANADA BANK SAID JUST GET
BANK DRAFT FROM THE NEW YORK BANK AND NOTHING ELSE. APPARENTLY
THERE IS SOMETHING ELSE. PLEASE HELP WITH SOME ADVISE. I DON'T
WANT ANY TROUBLE WITH THE IRS. I WANT IT DONE RIGHT. THANK
And
B. Hi David,
Your past few listings have freaked me out. In May 04, unaware of
the law, I withdrew exactly 10,000 U.S from my checking account
in U.S. and deposited in a checking account in Windsor, ON. Since
I live in Windsor and work in Michigan, I transferred the money
just for my personal expense. Following month, I opened a savings
account in Canada (US$ savings account) and withdrew another
$5000 U.S. from the same checking account and deposited in the
new account. These were the only transactions I have made (and
will ever make).
What do I do so that blood in my veins can defrost?
Regards,
and
C. David,
This is in regard to the transferring of money from US to
Canada. I work in US under TN and my salary is deposited directly
into a US account. Then I transfer money from US to Canada since
I live in Canada. Who is responsible to report these txns to IRS?
myself or the banks involved?
thanks
x xxxxx
==================================================
david ingam replies:
Remember that in July 2001 (TWO months BEFORE Sept 11, 2001), US
Trust in New York paid a $10,000,000 (TEN MILLION DOLLARS) fine
for delivering less than $10,000 at a time to Talk Show hose Rush
LIMBAUGH and others. At the time, Rush Limbaugh's name was not
made public. The crime was "STRUCTURING", that is arranging to
give or receive amounts of less than $10,000 cash to avoid the
reporting rules. In the RUSH LIMBAUGH case, the US TRUST
representative had suggested to Rush Limbaugh, that if he took
out $9,900 at a time, it would not have to be reported. Limbaugh
was using the money to buy drugs for cash (to support his habit
for which he was taken off the air for five months).
1. YOU, and another dozen people who wrote similar letters
have nothing to worry about. If you transfer the monies out
electronically, the US bank will file form 104 and the Canadian
Bank will file form E677, These two forms go automatically and
you do not have to do a single thing.
2. If writer one had taken the $69,000 out of the bank in
cash and writer two had taken his $10,000 out in cash and both
drove across the border with the "CASH" or a negotiable security,
they would have had to file form 105 in the US and form E667 in
Canada. I.E. they should have stopped at the US border and
handed in form 105 as they LEFT the USA and then handed in form
E677 to the Canadian side as they entered. Both Canadian banks
would likely then have reported the deposits of more than $10,000
(Canadian) in cash to FINTRAC.
Neither case had any intention to assemble more than $10,000 with
multiple transfers which were under $10,000 each.
3. In the case of writer three, he is depositing his salary in
the ordinary course of events. He transfers the money out on a
regular basis and deposits it on a regular basis and then spends
it for day to day living in Canada. The US bank will not likely
report it as suspicious since it is arriving as one of (likely)
many payroll cheques from a legitimate company. The Canadian
bank will not report it because it is coming from another bank
and is obviously a salary cheque, etc. The exception would be if
he transferred more than $10,000 US out or received more than
$10,000 Cdn in his Canadian Bank. In that case, the banks would
have to report as in "1" above.
I will put the old newsletter back in here so that the links to
the forms are included.
david ingram replies: The forms are E677 and E667 for Canada
and as of September 1, 2004 )today) 104 and 105 for the US if
you are bringing the money out of the US into Canada..
The US bank will report the deposit or withdrawal to the US
FINCEN on form 4789 (which is still valid until August 31, 2004)
or more likely the new form 104 which you can find at:
http://www.irs.gov/pub/irs-pdf/ffc104.pdf
When you then move the money to Canada by money order or check,
the bank or financial institution will report it again.
The US penalties for failure to fill in these simple forms is up
to $500,000 PLUS 5 years in jail.
If you remove more than $10,000 at any one time, the bank will
report those transactions as well.
If you decide to carry the cash or transport it out of the USA as
a cashier's cheque, you have to file form 105 (old form 4790).
You can find the form at:
http://www.irs.gov/pub/irs-pdf/ffc105.pdf
Canada has moved its forms in the last few days and i had a devil
of a time trying to find them. You can find both E677 and E667
below.
http://www.cbsa-asfc.gc.ca/E/pbg/cf/e677/e677-fill-02b.pdf
E667 is filled out by yourself and E677 is filled out by the
financial institution.
http://www.cbsa-asfc.gc.ca/E/pbg/cf/e667/e667-fill-02b.pdf
Answers to this and other similar questions can be obtained free
on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of
Cartier Partners and I will be hosting an INFOMERCIAL but LIVE
talk show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the
internet at
www.600AM.com
Local phone calls to (604) 280-0600 - Long distance calls to
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Old shows are archived at the site.
This from ask an income tax immigration planning and bankruptcy
expert consultant guru or preparer from www.centa.com or
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Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as
advice in any particular circumstances. No contract exists
between the reader & the author and any and all non-contractual
duties are expressly denied. All readers should obtain formal
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immigration specialist in connection with personal or business
affairs such as at www.centa.com. If y
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