best option for foreign banking?

[ucladave]

Looks like if we want to get any affiliate payments we are going to have to open a foreign bank account. Paradise affiliates basically told us to in their newsletter, but my question is what is the best option?

Id like to get one that is relatively easy to open (like a day) and that wont raise a million flags with the IRS. I'm not skirting taxes, but the pleasure of an audit is something Id rather avoid. Suggestions?

[kdollar]

I would also like an answer to this question...

[adioking]

If you make over $100k a year, you'll probably be auditted anyways. If you don't transfer over $10k a month, I'd say just about any Canadian bank account will do.

If you are one of those people who don't plan on paying taxes, you might want to think "warmer."

My numbers might not be exact or anything, so don't quote me on any of this.

[ResIpsa]

Originally Posted by adioking

If you make over $100k a year, you'll probably be auditted anyways. If you don't transfer over $10k a month, I'd say just about any Canadian bank account will do..

that's a pretty agressive statement; you have any justification for this? I fully understand you may be increasing your audit risk, but you could tripple your risk and still probably a slim (<2%) chance of an audit. Don't get me wrong, I have no idea what this would really do to your risk, but I certainly don't see any reason that an audit would be "probable". If you're not paying your taxes, then that's probably a whole different ballgame.....

[PPP]

Originally Posted by ucladave

Id like to get one that is relatively easy to open (like a day) and that wont raise a million flags with the IRS. I'm not skirting taxes, but the pleasure of an audit is something Id rather avoid.

Standard tax preparer's line: the chances of being audited if you have a non-US bank account are 100%.

And it is illegal to not declare one if you have one.

So, if you don't want to break the law, and want a non-US bank account, you will be audited every year.

[joeker]

We seem to go over this same topic every few months. I've opened foreign bank accounts, so will break it down for you here:

1. Canadian bank accounts, easy to open. Requirements: Physically go to a branch, valid passport, valid photo ID, and a canadian address which you can get from numerous services for a low monthly fee every month. This is a normal checking account with checks and debit card. You dont NOT need to be a resident, just have a valid canadian address.

2. Banks in the Isle of Man, Girbraltar, Swiss...etc. Requires large deposit ($5k min) and min balance. Really meant for welath management, not a good option.

3. Cayman Islands, banks here will open an account with a min deposit of $1k, and require you send paperwork. Decent workable option

Always report all income in US or foreign banks accounts. Report aggregate amounts over 10k in foreign bank accounts.

[joeker]

Originally Posted by PPP

Standard tax preparer's line: the chances of being audited if you have a non-US bank account are 100%.

And it is illegal to not declare one if you have one.

So, if you don't want to break the law, and want a non-US bank account, you will be audited every year.

You're drastically exagerating. Yes, having a foreign bank account increases your chance for an audit, but not nearly "a 100%"

But so what.....people live in fear of being audited, if you PAY YOUR TAXES then there's no concern if you're being audited. If you're evading taxes, then you should worry about being audited.

So what's the logical conlusion here? Pay your taxes on your income and don't worry about it.