Some of us have an interest in saving money in overseas accounts which cannot be accessed by the U.S. government. This is legal providing taxes are paid and amounts over $10,000 are reported.
Offshore banking is legal when created for legitimate reasons, such as diversifying investments, protecting your money from potential economic instability, or making international transactions easier if, for example, you’re a foreign exchange student or managing real estate. The key is to ensure full compliance with all tax and reporting laws. … The Foreign Account Tax Compliance Act (FATCA) requires banks worldwide to report balances and any activity of American citizens to the IRS or face fines.
If you have an overseas bank account, you must declare its existence with the IRS using a FACTA. However, if it is more than USD $200,000 while living abroad (or more than $50,000 while residing in the U.S.), you must file a more detailed IRS Form 8938… [end quote]
One potential issue with foreign savings is currency fluctuations. If the foreign currency falls against the USD you could lose money if you cash out into USDs.
My Bank Accounts in Spain and Mexico DO report to USA annually on my balances and money movements. I overwhelmingly use those accounts to ease and facilitate moving money and for local credit card purchases, not investing.
Imagine opening an account in Zimbabwe and your Zimbabwe dollars got reported as US dollars? DOGE wants to know why you didn’t report your 330,000 dollars (only 1000 US Dollars)?
Many years ago, I picked up a lost bill on a hiking trail. I was startled to see 10,000 until I read the fine print. It was a worthless Zimbabwean bill. I still have it somewhere.
Wendy
The first mark, known as the Goldmark [gold] , was introduced in 1873. With the outbreak of World War I, the mark was taken off the gold standard. The currency thus became known as the Papiermark [paper], especially as high inflation, then hyperinflation occurred and the currency became exclusively made up of paper money. The Papiermark was replaced by the Rentenmark [rent] (RM) from 15 November 1923, and the Reichsmark [imperial] (ℛ︁ℳ︁) in 1924.
