Bank Suspended my Account after an international wire.
Brokerage firms or investment firms, such as Vanguard, will suspend your account if your corporation or LLC has not paid its annual license fee. Often, your account will be blocked (also known as frozen).
If you are making international wires or receiving international wires arrange a meeting with your bank and your CPA before the money is sent or received. Let the bank know your banking needs.
Have your CPA assure your bank that you have filed the IRS international forms. They include the Form 5471 (an information return regarding foreign corporations), the FBAR (the Bank Secrecy Act information return reporting your foreign bank accounts) and Form 3520 reporting foreign gifts or trust distributions.
Bank Suspended my Brokerage Account and then Blocked It.
These issues are serious. If the account appears suspicious, then a report is sent to the government. Most Western European countries cooperate with U.S. authorities. This has caused a new problem for the non-resident alien. Often, they have plan to use the United States as a tax haven.
The newest tax haven entity is the Wyoming limited liability company (LLC) is currently the favorite LLC. The U.K. court has ruled that a United States LLC is a tax haven (on this link).
Often, I get a call from alien saying that their “bank suspended my brokerage account.” And of course they did. Their account had many international bank wires. Once the account is suspended or frozen, you mayl have to close the account.
Thus, you want to quickly resolve the issue.
If you need help, then contact me, Brian Dooley, CPA, MBT at [email protected] We will get your corporation (foreign or domestic) in good standing and work with your bank or broker to repair the relationship.
If you delay, that bank or brokerage firm will close your account and mail you a check. In some cases, the bank will refuse to accept the incoming wire transfer. As a result, you can not pay your bills.