A “Sample Letter to Foreign Bank Streamlined Voluntary Disclosure” is a document. It’s for people with undisclosed foreign financial assets. These assets might be in a bank account. You might need this letter if you haven’t reported these assets to the IRS.
This letter is part of the IRS’s Streamlined Voluntary Disclosure Program. This program helps taxpayers come clean about their foreign accounts. The letter helps you inform the foreign bank. It tells them you’re participating in the program.
We’ve got you covered. We’ll share sample letters. These templates will guide you. You can adapt them to your situation. Writing this letter doesn’t have to be hard.
Sample Letter To Foreign Bank Streamlined Voluntary Disclosure
**Sample Letter To Foreign Bank Streamlined Voluntary Disclosure**
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Bank Name]
[Bank Address]
**Subject: Streamlined Voluntary Disclosure – Account Information Request**
Dear Sir/Madam,
I am writing to you regarding my account [Account Number] held at your bank.
I am a U.S. taxpayer and I am participating in the IRS Streamlined Voluntary Disclosure Program to correct prior non-compliance with U.S. tax laws.
To complete my disclosure, I require the following information for the years [Year 1] to [Year 2]:
* Year-end account statements.
* Details of all transactions, including deposits, withdrawals, and transfers.
* Information on any income earned on the account, such as interest.
Please send these documents to me at the address listed above.
I understand there may be fees associated with providing this information. Please inform me of any applicable charges before processing my request.
Thank you for your cooperation.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To Foreign Bank Streamlined Voluntary Disclosure
Subject Line: Clarity is Key
The subject line should be succinct yet illuminating. It needs to immediately telegraph the letter’s purpose.
- Example: “Streamlined Voluntary Disclosure – Account Holder [Your Name] – Account Number [Account Number]”
- This specificity expedites processing and avoids any ambiguity.
Salutation: Professional Courtesy
Begin with a formal salutation to establish a professional tone.
- Use “Dear Sir or Madam” or, if possible, address a specific individual within the compliance department.
- Avoid overly casual greetings.
Introduction: State Your Intent Unambiguously
The introductory paragraph must clearly state the purpose of your letter. Be forthright and unequivocal.
- “I am writing to disclose my interest in account number [Account Number] held at [Bank Name] under the Streamlined Filing Compliance Procedures.”
- Include your name, address, and Taxpayer Identification Number (TIN).
- Briefly mention that you are submitting this disclosure to rectify past non-compliance with U.S. tax regulations.
Body Paragraph 1: Account Details and History
Provide a comprehensive overview of the account’s history and salient details.
- Specify the date the account was opened.
- Explain the source of funds deposited into the account.
- Disclose the maximum value of the account in each of the past six years. Use the exchange rate on December 31st of each year for conversion to USD.
- Indicate whether you have signature authority over any other accounts at the bank.
Body Paragraph 2: Certification of Non-Willfulness
This is perhaps the most crucial section. You must certify that your failure to report the account and its income was due to non-willful conduct.
- Detail the circumstances that led to the non-compliance. This might include unfamiliarity with U.S. reporting requirements, reliance on erroneous advice, or a genuine misunderstanding.
- Be credible and authentic. Avoid generic statements that could raise suspicion.
- Explain why you believe your conduct was not willful. Be prepared to substantiate your claims if challenged.
- Include a declaration such as, “I hereby certify, under penalties of perjury, that the information contained herein is true, correct, and complete to the best of my knowledge and belief, and that my failure to report the aforementioned account was due to negligence, inadvertence, or mistake, and was not due to willful intent to evade U.S. tax laws.”
Supporting Documentation: Substantiation is Paramount
Include all relevant documentation to support your disclosure and enhance its credibility. Scrupulous documentation is non-negotiable.
- Copies of account statements for the past six years.
- Any correspondence with the bank related to the account.
- Passport copy (if requested).
- Any other documents that could bolster your claim of non-willfulness.
Closing: Express Gratitude and Offer Cooperation
Conclude your letter with a polite and professional closing.
- Express appreciation for the bank’s cooperation.
- Offer to provide any additional information or documentation that may be required.
- Use a formal closing, such as “Sincerely” or “Respectfully.”
- Sign the letter in ink and include your printed name and contact information.
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Frequently Asked Questions: Sample Letter to Foreign Bank for Streamlined Voluntary Disclosure
This section addresses common inquiries regarding the sample letter used when requesting information from a foreign bank in connection with the Streamlined Voluntary Disclosure Procedures. Understanding the purpose and limitations of this sample letter can facilitate compliance with IRS requirements.
1. What is the purpose of a sample letter to a foreign bank for Streamlined Voluntary Disclosure?
The sample letter serves as a template for taxpayers to request account information from a foreign financial institution necessary for completing the Streamlined Filing Compliance Procedures. It aims to facilitate the disclosure of previously unreported foreign assets and income.
2. Is using the sample letter mandatory for Streamlined Voluntary Disclosure?
No, the sample letter is not mandatory. Taxpayers may draft their own letters, provided the letters include all essential information necessary for the foreign bank to identify the relevant accounts and provide the required documentation.
3. What information should the letter to the foreign bank include?
The letter should include the account holder’s name, address, taxpayer identification number (TIN), account number(s), the period for which information is requested, and a clear statement of the information needed (e.g., account statements, transaction history).
4. What if the foreign bank refuses to provide the requested information?
If the foreign bank refuses to provide the information, document the refusal, including the date and reason given. This documentation should be included with the Streamlined Filing Compliance Procedures submission. The IRS understands that obtaining information from foreign banks can sometimes be challenging.
5. Does sending this letter guarantee acceptance into the Streamlined Voluntary Disclosure program?
No, sending the letter is merely a step in gathering the necessary documentation. Acceptance into the Streamlined Filing Compliance Procedures depends on meeting all eligibility requirements and accurately completing all required forms and disclosures.