http://www.taxabletalk.com/archives/..._2007_02.shtml
-----> Neteller, the DOJ, and the IRS
"First, Neteller is considered to be a foreign financial institution. If you have a foreign bank account, and have $10,000 or more in a foreign bank account(s) at any one time, you are required to file Form TD F 90-22.1 by June 30th of the following year with the Department of the Treasury and check the box at the bottom of Schedule B. If you have a foreign bank account and don't declare it, you can face civil and/or criminal penalties.
Anyone who received $10,000 or more in one transaction from Neteller had a foreign bank account. I expect the Treasury Department to check their records and come after those who didn't declare their Neteller account. A few individuals may even face criminal prosecution over this, if they had extremely large transactions from Neteller."
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Form TD F 90-22.1
Who Must Use This Form?
This is a brief one page form that is used to disclose the identity of and location of any foreign financial accounts with a balance
(for all accounts combined) of more than $10,000 at any time during the prior calendar year.
When Is It Due?
This form is due on June 30th of the year following the taxable year of the taxpayer. There is no procedure available for an extension and an extension of time to file a personal or corporate tax return does not affect the filing date for this form.
Why Comply filling Form TD F 90-22.1 ? (Penalties) to
According to the instructions to the form, "Civil and criminal penalties, including in certain circumstances a fine of not more than $500,000 and imprisonment of not more than five years, are provided for failure to file a report, supply information, and for filing a false or fraudulent report". (31 CFR 103)
However, these extreme penalties have rarely been imposed due to the time and cost of proving willfulness. In the American Jobs Creation Act of 2004, the Congress added a new penalty of up to $10,000 for a non-willfull failure to file this form. That penalty can be waived at the discretion of the IRS for reasonable cause, but the law and instructions are silent as to whether the penalty can be imposed for filing the report after the due date.
JAque