EIP - US Citizen living in foreign country - Must have US bank account?

[BulldogTom]

I have a client living in the Philippines asking about filing to get the EIP.   Has not filed since 2017 when he left the US.   Does not have a US bank account in his name.   Wants to DD into his daughter's account.   I think this is a problem and he needs to have a US Bank account in his name.   I also think when he applies for SS next year, it would be better to have a US bank account for his monthly payments.    Comments?

Thanks

Tom
Modesto, CA  

[Margaret CPA in OH]

An AU client's son is independent in 2020 and qualified for the money but a check will be mailed as he does not have a US bank account and he is not listed on his parent's account.  Parents are planning to have it mailed back to US relative to deposit into parents account.  He is looking into having an international account but I can't recall the bank-it's an internet bank.  I would imagine that receiving SS it would be advisable to have a US or appropriate bank account for direct deposit.

I don't believe he can't have dd into an account on which he is not listed.  If getting an international bank account, be sure that it works with Philippines as not all banks work with AU.

[Pacun]

Accounts doesn't have to be under the tax payer's name. 

I had a new client this year where the ex-preparer had listed his/her account first and took $900 off her refund. Since the account of the tax preparer was listed first, the stimulus were deposited to the tax preparer.

A few years ago, my bother kept bothering me because his refund never arrived to his account. When I filed his taxes, he told "I have the same bank account, use the same account as last's year". I did and the account was his ex-girl friend. She had his money but luckily they were friends and he got his money. So IRS doesn't check names, only routing number and account number.

[Margaret CPA in OH]

No, IRS doesn't really care but many banks do.  My AU client's bank will not accept a direct deposit in the name of someone not on the account.

[Lion EA]

Bulldog, is your client a US Citizen, green card holder or tax resident? Why hasn't he filed returns?

[BulldogTom]

9 hours ago, Lion EA said:

Bulldog, is your client a US Citizen, green card holder or tax resident? Why hasn't he filed returns?

Is a dual citizen.  Came to US as a child.   Lived here for 50 years.   Got divorced, sold the family home, took his half tax free and moved back to the Philippines.   Is living on that money, waiting until he can start on SS.  Has no filing requirement.

Tom
Modesto, CA

[Lion EA]

I always suggest filing to start the statute of limitations running. Does he need to file Form 8938? Is he required to check the boxes on Schedule B, or only if he has a filing requirement? Is he e-filing his own FinCEN Form 114?

[Catherine]

Everything Lion said.  He needs to file FinCen 114 (formerly FBAR) and possibly 8938.  Always file, in these cases, to get the SOL going.  

That said, as long as the IRS has a routing number and account number, they'll take it.  It's one reason WE  have to be so frimping careful putting those numbers in; if we put in the wrong account, the funds WILL go to the wrong account.  

Without a US account, with US routing (ABA) and account numbers, the US person will be mailed a check.  That's a problem with mail outside the US and also a problem with many banks in Europe now REFUSING to take checks!  I have two clients who live in the Czech Republic (dual citizens) who had to open accounts at the ONE bank left in Prague that will still accept physical checks.  And since all the banks over there don't have US number, they are not eligible for direct deposit from the US.  They have relatives here who may be able to help if something crops up in the future - but frankly, would any of us be sanguine about sending *our* over-$1,000 to a distant relative's account in the hopes they send it to us?