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Financial Planning / Tax Strategies
|Subject: we're moving back to the states-please advise||Date: 12/8/2004 5:40 AM|
|Author: umma2three||Number: 74508 of 120431|
My husband and I (both American citizens) have been working abroad (S. Korea) for the last 6 years. We have reported our taxes every year for our foreign earned income (form 2555). We will be moving back to the states next month and was planning to wire money from our Korean bank account to our bank in the United States.
Some questions I have are as follows:
1) Is 100% of our reported income exempt from tax once wired into our American bank account?
2) Once the money is wired to the bank account in the states, when does the IRS get involved, if at all, in the process? Do they send me a letter asking where I got this money from, or do they just assume that it's savings from my foreign earned income, and not send me any notice? I am just curious about what takes place once I wire the money into my American account.
3) I've just learned that we should have been filing this form (90-22.2 not sure of the exact number) to the Treasurery if we have had more than $10,000 in a foreign bank account. We have not been filing this form (didn't realize this form existed). What are our consequences?
4) We will also be receiving a refund on the pension that we have been putting into the Korean pension system. From reading on this site, I am assuming that we are not liable for paying taxes on these funds as well. If so, do we need to document this from the pension office in Korea?
Thank you in advance for your advice.
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