IRS Form 8938, the FBAR form and Gold/Silver

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dmanson
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IRS Form 8938, the FBAR form and Gold/Silver

Turds,

So, after opening a Goldmoney account, I realized that I needed to file an FBAR form, which I have and have been totally honest every year.  Now I hear that there is another form called the 8938 which needs to be filed in April (the FBAR is due in June).  This seems burdensome but that's nothing new, it's the government.  

However, I heard that vaulted metals stored offshore do NOT need either an FBAR or 8938 form at all as they are not "accounts".  Goldmoney I guess was fighting to be considered exempt but the government says it qualifies.  I really like Goldmoney because theoretically I can be anywhere in the world and can have my gold/silver sold to them and money wired to me wherever I am.  However, if I had to store physical in a vault somewhere, I'd have to physically go there to get it, travel with it or sell it, etc.  

I am not someone who wants to store wealth at home buried in the yard or in a safety deposit box at a bank.  Sure, I have a few silver coins, but mostly just to show my kids and it's less than $100 worth.  I don't keep any real money at home, too stressful for me.  

I'd appreciate anyone weighing in on if you have a Goldmoney account or Bullionvault and if you are in the same boat I'm in.  I always report whatever I'm supposed to in order to stay in compliance, but it seems a bit burdensome with two separate forms filed now for the same thing.  I suppose I could have Goldmoney send me my paltry amount in bars and then take them and store them elsewhere such as Bullionvault where it's not required to report.  It all just seems like a huge pain.  If I sell, I'd have to pay on the gains, so I don't want to do that at this time.  

Anyone have anything to contribute here?  I must not be the only person in this boat.  

Edited by admin on 11/08/2014 - 06:02
Mickey
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my guess

is since cef gtu phys and pslv are traded on US exchanges and if you trade thru a US brokerage account, that does not constitute a foreign account. But No real basis, even though the brokers 1099 covers transactions.

and i am trying to use logic which mostly does not work with US govt

stealthbear
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Goldmoney and FBAR

My accountant checked this out for me and sent me some information which convinced me to file the FBAR form (fitting acronym, I think!).  I have a Gold money account that is under the $50,000 limit so I don't have to file the form 8938 with my tax return, but I did file the FBAR with the Dept of Treasury because the amount is over $10,000.  I would have just disregarded filing this form and plead igorance later, if caught, but then I read that the penalty for not filing the FBAR is $10,000.  Not UP TO $10,000, but a straight out penalty of $10,000. Got my attention!

The form also asks you to list the greatest amount of money the account was worth during the year---WHAT??? It varies daily with the price of gold and I am not about to check it every single day.  I am seriously thinking of closing the account due to this bull-----!!!!

Irene
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@stealthbear

For 2011, just use your August 2011 BV account statement for highest yearly value because that was the highest month for PMs.  Somewhere the FBAR rules say you can use the highest value account statement, but I don't have time to find it and link to it.

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