12/17/2012
We are a small community bank. We have 72 individuals who are non-resident aliens. They regularly wire funds to other countries and also receive funds into their accounts at the bank. These accounts are for students at the local university. The money is used for tuition, housing and miscellaneous expenses. If I am correct since they are not US Citizens FBAR would not be a concern. New Reporting Requirements by U.S. Taxpayers Holding Foreign Financial Assets (Form 8938) Taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. The new Form 8938 filing requirement does not replace or otherwise affect a taxpayer's requirement to file FBAR. A chart providing a comparison of Form 8938 and FBAR requirements, and other information to help taxpayers determine if they are required to file Form 8938, may be accessed from the IRS Foreign Account Tax Compliance Act Web page. Also, we (the bank) have no foreign accounts and only transfer funds to other countries via wire using OFAC guidelines for our customers. Is there anything I need to be aware of for the Report of Foreign Bank and Financial Accounts (FBAR)?
11/12/2012
Will we need to report interest for nonresident alien accounts? We have so few that the ones we have had in the past were not reported. Most have a SS#, can they be reported on a 1099-INT?
10/29/2012
The new bank I am with gives Negative Information Disclosures with Adverse Action Notices. I don't see how this is correct since we have not issued credit to them therefore we have no negative credit to report personally. Am I correct? I've looked at FACTA and TIL and found nothing I can show the lenders.
10/15/2012
I was wondering if it is common practice to create a customer information file for all individuals conducting a cash transaction regardless of the amount and account ownership. For example, creating a CIF for man who is depositing $20.00 to his friend's account as a favor. I've been told it needs to be done as a precaution for a possible CTR. Could this policy violate any banking regulations or is it supported by the Bank Secrecy and Anti-Money Laundering Act?
10/15/2012
A joint account with right of survivorship that has a deceased primary owner: What are the ramifications of reporting interest earned on a deceased primary owner's SSN when an account has a surviving joint owner? Who is liable for these ramifications - we, the institution, or the surviving owner(s)? When a primary owner dies, we request that the surviving owner(s) close the existing account and re-open a new one in their name, but we don't REQUIRE it. Are we doing something wrong?
10/08/2012
I was wondering if there had been any changes or updates to the answer to the following question? Reporting Interest on Commercial Real Estate LoansQuestion: What is the regulation on reporting interest on commercial real estate loans? And should we send a 1098 to all borrowers or a year end history of interest paid? Answer: The IRS reporting requirement doesn't distinguish between commercial and residential real estate. It keys instead on who the primary obligor on an obligation is, and whether the obligation is secured by real property. If a loan is secured by real property, and the primary obligor is an individual (includes sole proprietors), and the amount of interest paid by or on behalf of the individual is $600 or more, you have to deliver a 1098. If the primary obligor is not an individual (even if trustees, comakers, guarantors or other hangers-on are individuals), or if there is no real property involved, or if the amount of interest on the obligation was less than $600, there is no 1098 requirement. Any reporting you do in those cases would be as an accommodation. (First published on BankersOnline.com 3/20/06)
09/24/2012
When you have a joint account and the tax reporting owner passes away, can you just change the SS# on the account to the surviving party and leave the account open or should you close that account and open a new account?
09/10/2012
We have a client that is reporting in April that checks posted to his account in Jan are due to fraud and that they were stolen during a home invasion. He is requesting to be made whole for the transactions. Do we as the paying bank have to comply? The bank of first deposit has refused our return claiming it was past our midnight deadline.
09/03/2012
A question was previously posted in regards to HMDA Reporting for Property Purchased with Cash. Specifically, the question states: "We have a business customer that purchases property for cash, then applies for a mortgage loan using the property as collateral. Is this a HMDA reportable loan or not; if so, what is the purpose? He is not improving the properties. Should we consider this a refinance?" The answer provided states that it is not a refinance. However, it does not specify if its considered a purchase or if it is not HMDA reportable at all. Please let me know if this is HMDA reportable and if so, if it considered a purchase.
09/03/2012
When a company or organization has multiple accounts with same TIN and different addresses, should CTRs be filed with different section A entries or under just one? Which address should be used? For example, School District with different schools depositing into multiple accounts with the same TIN or different Boy Scout Troops with same TIN, different addresses.