Publication 54 - Tax Guide For U.s. Citizens And U.s. Citizens Abroad

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You have an interest in a foreign bank or

investment securities in bearer form or other-

Estimated Tax

financial account.

wise in such form that title passes upon delivery,

and negotiable instruments (except warehouse

receipts or bills of lading) in bearer form or other-

Form 5471. Form 5471 must generally be filed

The requirements for determining who must pay

wise in such form that title passes upon delivery.

estimated tax are the same for a U.S. citizen or

by certain U.S. shareholders of controlled for-

The term includes bank checks, and money or-

resident abroad as for a taxpayer in the United

eign corporations and by certain shareholders,

ders that are signed, but on which the name of

States. For current instructions on making esti-

officers, and directors of foreign personal hold-

the payee has been omitted. The term does not

mated tax payments, see Form 1040 – ES.

ing companies. Form 5471 must also be filed by

include bank checks, or money orders made

officers, directors, and shareholders of U.S. enti-

If you had a tax liability for 2001, you may

payable to the order of a named person that

have to pay estimated tax for 2002. Generally,

ties that acquire, dispose of, or are involved in

have not been endorsed or that bear restrictive

you must make estimated tax payments for

the reorganization of a foreign corporation.

endorsements.

2002 if you expect to owe at least $1,000 in tax

If Form 5471 is required, you must file it at

for 2002 after subtracting your withholding and

A transfer of funds through normal banking

the time you file your income tax return. More

credits and you expect your withholding and

procedures (wire transfer) which does not in-

information about the filing of Form 5471 can be

credits to be less than the smaller of:

volve the physical transportation of currency or

found in the instructions for this information re-

bearer monetary instruments is not required to

turn.

1) 90% of the tax to be shown on your 2002

be reported on Form 4790.

tax return, or

Form 3520. You may have to file Form 3520,

Recipients. Each person who receives cur-

2) 100% of the tax shown on your 2001 tax

Annual Return To Report Transactions With

rency or other monetary instruments from a

return. (The return must cover all 12

Foreign Trusts and Receipt of Certain Foreign

place outside the United States for which a re-

months.)

Gifts, if:

port has not been filed by the shipper must file

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If less than two thirds of your gross income for

Form 4790.

You are involved in the creation of a for-

2001 or 2002 is from farming or fishing and your

eign trust,

It must be filed within 15 days after

adjusted gross income for 2001 is more than

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receipt with the Customs officer in

You are involved in the transfer of money

$150,000 ($75,000 if you are married and file

charge at any port of entry or depar-

or property to a foreign trust,

separately), substitute 112% for 100% in (2)

ture, or by mail with the:

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above. See Publication 505 for more informa-

You are treated as the owner of any part

tion.

of the assets of a foreign trust under the

Commissioner of Customs

The first installment of estimated tax is due

grantor trust rules,

Attention: Currency

on April 15, 2002.

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You received a distribution from a foreign

Transportation Reports

When figuring your estimated gross income,

trust,

Washington, DC 20229.

subtract amounts you expect to exclude under

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A related foreign trust held an outstanding

the foreign earned income exclusion and the

Shippers or mailers. If the currency or

obligation issued by you (or a person re-

foreign housing exclusion. In addition, you can

other monetary instrument does not accompany

reduce your income by your estimated foreign

lated to you),

a person entering or departing the United

housing deduction. However, if the actual

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You received more than $100,000 from a

States, Form 4790 can be filed by mail with the

amount of the exclusion or deduction is less than

nonresident alien individual or a foreign

Commissioner of Customs at the above ad-

you estimate, you may have to pay a penalty for

estate (including foreign persons related to

dress. It must be filed by the date of entry,

underpayment of estimated tax.

the individual or estate) that you treated as

departure, mailing, or shipping.

gifts or bequests, or

Travelers. Travelers carrying currency or

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You received more than $11,273 from for-

other monetary instruments must file Customs

Information Returns

eign corporations or foreign partnerships

Form 4790 with the Customs officer in charge at

(including foreign persons related to the

any Customs port of entry or departure when

and Reports

corporations or partnerships) that you

entering or departing the United States.

treated as gifts.

Penalties. Civil and criminal penalties are

There are several instances in which you may

provided for failure to file a report, supply infor-

have to file either an information return or a

If Form 3520 is required, you generally must

report. You may have to file a return or a report if

mation, and for filing a false or fraudulent report.

file it at the time you file your income tax return.

any of the following apply.

Also, the entire amount of the currency or mone-

Send Form 3520 to the Internal Revenue Ser-

tary instrument may be subject to seizure and

vice Center, Philadelphia, PA 19255. More infor-

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You are a shareholder of a controlled for-

forfeiture.

mation about the filing of Form 3520 can be

eign corporation.

found in the instructions for the form.

More information about the filing of Form

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You are a shareholder, officer, or director

4790 can be found in the instructions on the

of a foreign personal holding company.

Form 4790. Form 4790, Report of Interna-

back of the form.

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tional Transportation of Currency or Monetary

You are a shareholder, officer, or director

Instruments, must be filed by each person who

of a U.S. entity that acquires, disposes of,

Form TD F 90 – 22.1. Form TD F 90 – 22.1

physically transports, mails, ships, or causes to

or is involved in the reorganization of a

must be filed if you had any financial interest in,

be physically transported, mailed, or shipped,

foreign corporation.

or signature or other authority over, a bank,

into or out of the United States, currency or other

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You are the responsible party for reporting

securities, or other financial account in a foreign

monetary instruments totaling more than

foreign trust events.

country. You do not have to file the report if the

$10,000 at one time. The filing requirement also

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assets are with a U.S. military banking facility

You receive large gifts or bequests from

applies to any person who attempts to transport,

operated by a U.S. financial institution or if the

foreign persons.

mail, or ship the currency or monetary instru-

combined assets in the account(s) are $10,000

ments or attempts to cause them to be trans-

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You are treated as owning any portion of a

or less during the entire year.

ported, mailed, or shipped. Form 4790 must also

foreign trust under the grantor trust rules.

be filed by certain recipients of currency or mon-

You must file this form by June 30 each year

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You receive distributions from a foreign

etary instruments.

with the Department of the Treasury at the ad-

trust.

The term “monetary instruments” includes

dress shown on the form. Form TD F 90 – 22.1 is

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coin and currency of the United States or of any

not a tax return, so do not attach it to your Form

You ship currency to or from the United

States.

other country, money orders, traveler’s checks,

1040.

Chapter 1 Filing Information

Page 7

Publication 54 - Tax Guide For U.s. Citizens And U.s. Citizens Abroad - 2001 Page 7

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