Taxes in the US

[Viper_Larry]

jez30 said:

What happened with you Viper_Larry?

I did what I shouldn't do - stuck my head in the sand and tried to ignore it! I still have the Premium Bonds, still have a house in the UK which I rent out and still have a UK bank account so I have left 'as is'. Like you, if I win big, I'll be back on a plane to get it! All correspondance is electronic so any winnings go straight to my account. I understand if I won big, I might have to pay US taxes, but I'm really not sure.

[bridgdav]

Viper_Larry said:

jez30 said:

What happened with you Viper_Larry?

I did what I shouldn't do - stuck my head in the sand and tried to ignore it! I still have the Premium Bonds, still have a house in the UK which I rent out and still have a UK bank account so I have left 'as is'. Like you, if I win big, I'll be back on a plane to get it! All correspondance is electronic so any winnings go straight to my account. I understand if I won big, I might have to pay US taxes, but I'm really not sure.

Same here, although a smaller house and less P.Bonds I don't doubt.
What they don't know won't hurt 'Em.

Think of your contributions as a tax savings plan.. Put too much in, get some back.. Don't put enough in, pay some.
Most of is new boys here should have a simple return for the first few years.
Now In my 5th yr, so setting some roots into the ground... Will be a new minefield to navigate next year if we buy a house etc...

[EK993]

You guys are playing with fire. For the potentially small amount of taxes you would owe (if any) to the US I would be above board and declare everything - for peace of mind.

Similarly I would notify both NS&I and the relevant authorities here regards the premium bonds to make sure you are in compliance.

Is it really worth getting into potentially a lot of trouble with the IRS and jeopardizing your future in this country for something so minor? The "what they don't know won't hurt them" line is worrying - as they do have ways of finding out - not least because you are posting about it on a public Internet forum.

[Matt Harper]

Eric is right - FBAR penalties are extreme (e.g. the penalty can equal or even exceed the totals of the accounts not reported). The IRS don't fk around.

[Viper_Larry]

I should explain - I DID declare the value of the Premium Bonds on my FBAR filing for 2013 that I did last year. I just haven't told NS&I that I am no longer in the country.

[jez30]

Viper_Larry said:

I should explain - I DID declare the value of the Premium Bonds on my FBAR filing for 2013 that I did last year. I just haven't told NS&I that I am no longer in the country.

Can I ask what type of account you declared them as please? I'm really confused about that.