With the deadline to file tax returns looming, many Korean-American taxpayers are

With the deadline to file tax returns looming, many Korean-American taxpayers are seeking information on tax report regulations for overseas property and funds in bank accounts. According to the Internal Revenue Service (IRS), the second period of voluntary reporting on overseas assets, such as money in bank accounts, real estate, inheritances, invested funds, etc., will expire soon – at the end of August, 2011.

At a recent seminar entitled “The IRS Report on Overseas Assets” held by a Korean bank on March 22, 300 Korean-American taxpayers who have property or funds in Korea or another country attended, looking for information. Because there are so many recent immigrants in the Korean community, a large number of people still retain Korean bank accounts, and property or holdings in Korea.

The lecturer, Mr. Byong-chan Ahn, a public accountant, spoke about the “regulations regarding overseas assets, matters to be attended to in filing income tax reports this year regarding overseas assets, methods of U.S. tax reporting on assets in Korea, the tax report situation between Korea and the United States, and the sharing of information on overseas assets between both countries.” He also emphasized that assets over $10,000 accrued between the years 2003-2010 must be reported by the end of August.

Overseas assets which must be reported include general bank account funds, retirement funds (IRA), pension funds (401K), and funds invested in foreign companies. In addition, Mr. Ahn introduced a new IRS regulation for 2012 in advance: if a U.S tax payer has over $50,000 in an overseas bank account, the monies must be reported. This regulation will take effect in 2012 for the tax year 2011. Violators will face a penalty of $10,000 or more.

“Many Korean immigrants in the United States are nervous because they do not know exactly what kinds of assets they should report to the IRS. They might have an inheritance from parents, had some funds prior to emigrating, or invested funds in the past or currently. It is necessary to have a public accountant or a professional who can really help and check the situation correctly for filing tax reports,” said Mr. Ahn.

Joongang Bank, U.S.A. has announced another free public seminar to be held soon for Korean-Americans.

By Du-hyon Baek, The Korean times, 24 March 2011. Translated from Korean by Sun-Yong Reinish.