quote:

Originally posted by Muletrain:
http://www.zerohedge.com/artic...ces-capital-controls

this is kind of intresting...
Safari-Lawyer you should read and lets us all know what this means to sending deposits over seas

Really a question for an accountant, but I'll take a stab.

While I am sure that someone will disagree (it's AR afterall), based on my quick and dirty research, I see no issue raised that impacts sending deposits or payments abroad.

If you google the HIRE Act, you will get a series of rambling diatribes about how this is the death of freeedom and how that the law makes it illegal to move more than $50,000 in offshore accounts. I don't see that in there. However, it IS the internal revenue code. Who am I to interpret the code?

This change in the Internal Revenue Code is geared toward catching tax cheats that are dumping income in foreign banks and not reporting that income to the IRS. It only creates reporting obligations and imposes a tax on payments that are "withholdable payments" in the first place. It does not prohibit Americans from transacting biz with non-Americans. It imposes greater requirements on Americans depositing income into foreign accounts as well as those banks receiving those payments.

Remember that this law amends the Internal Revenue Code. It is about generating tax revenue. As long as you report every penny of income and pay your taxes, I do not think the IRS cares what you do with your remaining post-tax dollars.

i will bet you anything they do care that you HAVE some after tax dollars

quote:

I do not think the IRS cares what you do with your remaining post-tax dollars.

but their masters sure do!

That's sort of my understanding of what it said. The new law is targeting folks who are hiding money in forign accounts. But never underestimate our government when it comes to groping in your pockets.

quote:

Originally posted by Muletrain:
But never underestimate our government when it comes to groping in your pockets.

Ain't that the truth!