Form 8938 ?

So is foreign currency considerred a foreign asset? Does anyone have a definitive answer as to if, how this effects Dinar holders? Does it mean we will get Taxed on Dinar we hold and don't cash in before the end of 2011?

Its form 4938. I am looking in to this and it will take me a few days. AJ

DTConcerned wrote:So is foreign currency considerred a foreign asset? Does anyone have a definitive answer as to if, how this effects Dinar holders? Does it mean we will get Taxed on Dinar we hold and don't cash in before the end of 2011?

AJAnderson wrote:Its form 4938. I am looking in to this and it will take me a few days. AJ

Form 8938 (Statement of Specified Foreign Financial Assets)
Form 4938 MINORITY/WOMEN OWNED BUSINESS ENTERPRISE (M/WBE)
MWBE SUBCONTRACTORS AND /or SUPPLIERS LETTER OF INTENT TO PARTICIPATE

I meant Form 8938

DTConcerned wrote:So is foreign currency considerred a foreign asset? Does anyone have a definitive answer as to if, how this effects Dinar holders? Does it mean we will get Taxed on Dinar we hold and don't cash in before the end of 2011?

\\

Ask you local CPA : )

My understanding:

Yes it is. But with cash it is very hard to tax. How would the IRS know that you have it???? Yeah they may say that you traded some with receipts but who's to say that you didn't trade it back or spend it on the street.

Don't let anyone fool you, Iraqi Dinar is cash. Plain and simple.

You don't have to pay taxes on any cash that you don't spend or put into a bank.

I really don't think this tax law have Iraqi Dinar cash holders in mind. This is for the astute who knew to get there cash out of American banks and put them in banks across borders.

I recieved the number from PTR's call, they gave both numbers and then corrected it with 4938. I will look at both numbers as I am researching this to see if they are right about the 15% flat tax. AJ

DTConcerned wrote:

AJAnderson wrote:Its form 4938. I am looking in to this and it will take me a few days. AJ

Form 8938 (Statement of Specified Foreign Financial Assets)
Form 4938 MINORITY/WOMEN OWNED BUSINESS ENTERPRISE (M/WBE)
MWBE SUBCONTRACTORS AND /or SUPPLIERS LETTER OF INTENT TO PARTICIPATE

I meant Form 8938

Here's a piece of the answer ... “Specified foreign financial assets” are: (1) depository or custodial accounts at foreign financial institutions, and (2) to the extent not held in an account at a financial institution, (a) stocks or securities issued by foreign persons, (b) any other financial instrument or contract held for investment that is issued by or has a counterparty that is not a U.S. person, and (c) any interest in a foreign entity.

http://www.schneiderdowns.com/irs-releases-8938-foreign-financial-asset-holders

zerhour... said, "... You don't have to pay taxes on any cash that you don't spend or put into a bank. ..."

IRS is collection agency for FED so any money in bank accounts may be subject to their notice and access, unless you know how to lawfully deal with it outside their system and exempt it/you from "taxpayer" status.

My first posts here give sources to info re "lawful money", which is NOT taxable, and how you can easily convert fiat Federal Reserve Notes to "lawful money"; you do need to know why, history, truth, and "how to" --all revealed in Say NO to irs "tax", 10/13/11 @ 5:54am and follow up- "Money" matters- HiStory, Truth, Solutions, 10/14/11 7:04pm.

roadglide's The Whole Truth about IRS and Bible , 11/17/11 10:57am has amazing free help sources you can access. Awesome!!

Blessings to ALL seekers of Truth and Abundance, and so much More
He has for those who Learn, Believe, and Act thereon. In His Love,
7freemom

This is what I read. 26 USC section 6038D and in my opinion could apply under (b) any other financial instrument or contract held for investment that is issued by or has a counterparty that is not a U.S. person.

From a CPA

What is exactly financial instrument? Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. In this definition, “contract” refers to an agreement between two parties that the parties have little, if any, discretion to avoid, usually because the agreement is enforceable by law. An asset or liability that is not contractual (e.g., an obligation to pay income taxes) is not a financial instrument even though it may result in the receipt or delivery of cash. The term “financial instrument” encompasses equity instruments, financial assets, and financial liabilities. And, Equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities [IAS 32, Financial Instrument: Presentation]. These three terms all have specific definitions that help entities determine which items should be accounted for as financial instruments described in detail through this post.

It is my belief that this sectionnor the from 8938 does not apply to the dinar investment, period! AJ

Kevind53 wrote:Here's a piece of the answer ... “Specified foreign financial assets” are: (1) depository or custodial accounts at foreign financial institutions, and (2) to the extent not held in an account at a financial institution, (a) stocks or securities issued by foreign persons, (b) any other financial instrument or contract held for investment that is issued by or has a counterparty that is not a U.S. person, and (c) any interest in a foreign entity.

http://www.schneiderdowns.com/irs-releases-8938-foreign-financial-asset-holders

Applies to 2011 tax year and Warka accounts...

IRS to Issue New Foreign Asset Report Form
WASHINGTON, D.C. (DECEMBER 15, 2011)
BY MICHAEL COHN, ACCOUNTING TODAY
The Internal Revenue Service plans to release a new information reporting form that taxpayers will need to use next tax season to report on certain types of foreign financial assets for tax year 2011.

Like what you see? Click here to sign up for Accounting Today's daily newsletter to get the latest news and behind the scenes commentary you won't find anywhere else.
The new form, Form 8938 (Statement of Specified Foreign Financial Assets), will need to be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. The IRS said Wednesday it is important for taxpayers to determine whether they are subject to this new requirement because the law imposes significant penalties for failing to comply.

The new Form 8938 filing requirement was enacted in 2010 to improve tax compliance by U.S. taxpayers with offshore financial accounts. It was part of the Foreign Asset Tax Compliance Act, or FATCA, which was included in the HIRE Act of 2010. Individuals who may have to file Form 8938 are U.S. citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.

Yep, this is exactly what i got out of the law mentioned above. AJ

landcareunlimited wrote:Applies to 2011 tax year and Warka accounts...

IRS to Issue New Foreign Asset Report Form
WASHINGTON, D.C. (DECEMBER 15, 2011)
BY MICHAEL COHN, ACCOUNTING TODAY
The Internal Revenue Service plans to release a new information reporting form that taxpayers will need to use next tax season to report on certain types of foreign financial assets for tax year 2011.

Like what you see? Click here to sign up for Accounting Today's daily newsletter to get the latest news and behind the scenes commentary you won't find anywhere else.
The new form, Form 8938 (Statement of Specified Foreign Financial Assets), will need to be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. The IRS said Wednesday it is important for taxpayers to determine whether they are subject to this new requirement because the law imposes significant penalties for failing to comply.

The new Form 8938 filing requirement was enacted in 2010 to improve tax compliance by U.S. taxpayers with offshore financial accounts. It was part of the Foreign Asset Tax Compliance Act, or FATCA, which was included in the HIRE Act of 2010. Individuals who may have to file Form 8938 are U.S. citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.

http://www.irs.gov/pub/irs-dft/f8938--dft.pdf

OK, so from a general perspective, this looks like it may not apply to foreign cash in hand.

Will consult my CPA when it is time.

That was my impression as well ... but wanted to see what more knowledgeable folks came up with ... I think there are three or so topics on this. I will try to merge them tomorrow unless someone else gets to it first.