Leaving US and taking money

[Japtrupusz]

I'm asking for a friend. She's a green card holder leaving US forever, will wire transfer her savings over $80k to her polish bank account in Poland. Next year when it comes to filing taxes, does she have to fill out FBAR or 8938 forms that she had foreign bank account? She will open it after leaving US and the money comes from work, she paid taxes and saved. She will close US bank account once she transfers the money. She will file as a U. S resident for a whole year. Thank you

[pk]

@Japtrupusz ,  US tax rules are the same for  all US persons ( citizen / GreenCard) -- whether one is residing in the USA or abroad  -- to maintain GreenCard valid one must enter US at least once a year ( unless  dispensed  by Immigration authorities).   As a US person, one must still tax return, and comply with FBAR and FATCA regulations just as if one was living on mainland US or its territories.

Does this answer your query ?   Is there more I can do for you ?

[Japtrupusz]

Thank you for your answer. We are still confused. If somebody leaves US soon, abandons green card, I read they need to get sailing permit? I thought if we still have to file taxes next year, we don't need to let IRS about leaving? 

[Critter-3]

To ensure the departing person files their final tax return there are rules :  

https://www.irs.gov/individuals/international-taxpayers/departing-alien-clearance-sailing-permit

[Japtrupusz]

Thank you! She is having an appointment with IRS in a few days, but they told her to fill out 1044c not 2063 form..I'm not sure why. She lived in the US as a permanent resident alien for 7 years. She always paid taxes. 

[Japtrupusz]

When she left she abandoned her residency, therefore she will be filling as a dual resident. Does she still need to file FBAR and form 8938? (When she was a resident she didn't have foreign bank account, once she left and become non resident she opened a bank account in Poland). If she has interest from the american bank does she still add them to income on 1040 form and once she opens polish bank account and wires her money does she need to declare the polish interest on 1040 NR?

How to make sure that one didn't end up as if they had $80 on american bank account and the money was just transferred to polish bank account and it's not taxable, it's just savings from income? 

Thank you

[Critter-3]

Ask them why when you provide them the form they requested.  

[pk]

@Japtrupusz , since you are saying the taxpayer ( whom has already renounced/ abandoned  her Green Card ),  her US world tax liability ceases from the day her abandonment has been accepted ( often the day she left the country).  That is for the period till the end of the year from this date she would be Non-Resident Alien, subject US taxes  on ONLY US sourced income.   Note that passive income like interest income  is taxed at a flat 30%  for a Non-Resident Alien.

If she had foreign bank/ financial account ONLY post abandonment of Resident status, there is NO requirement to  file FBAR  ( FinCen 114 ) or FATCA 8938.

Note also that  ( i did point this out earlier to your other post  ) that because she is a dual status alien  ( not having passed the Substantial Presence Test for the year ), she file form 1040  for the past part of the year ( Resident portion and 1040-NR for the Non-Resident portion of the year.   This also means that she would be restricted to using itemized deduction.

Whether Poland will tax ( double tax ) the interest income would be under their tax law.  Perhaps a quick look at  US-Poland tax treaty will answer that question.  I am pretty certain though that if she is  considered a    resident of Poland , then Poland would have the right to tax the income.  Amelioration of this double taxation needs to be discussed with a local tax professional  and /or tax department.  I am pretty sure this has happened before .

Hope this answers your questions(s)   Is there more one of us can do for you ?

[Japtrupusz]

@pk thank you! Just to confirm: She would have to declare her US income plus US bank interest (only for the time she lived in the US?) on 1040 as a resident and declare her potential polish income plus interest from US bank when being non-resident on 1040NR ? We read Poland taxes 19% from bank interest. Would she have to pay 30 % on interest to IRS and 19% to polish IRS until she transfers the money to polish bank bank account and close the US one? She needs to keep the american bank account open for a few months. Thank you, you are the best!