Employer Sponsership

[Busybee]

My husband has been employed by a US company, they have notified us that the visa application they have made on his behalf has been approved, they have made an appointment for us to go to the US embassy in London next month for our interview. Once this has been carried out they tell us that if we are approved we can move over when we like but obviousely they want us there asap. We have our money in a bank in a non regonized country, would we have to declare any interest earnt on my husbands tax return when we get to the states

[twostep]

What kind of visa has he been approved of? What do you mean by nonrecognized country?

As far as declaring taxes - unless memory fails me there is even a special section for such earnings. Taxevasion is not a gentleman's offense particularly as taxreturns are required for certain visas.

[Bevdeforges]

Once you are resident in the US, you must declare and pay taxes on your worldwide income and there is a separate declaration (to the US Treasury Department) for all foreign accounts you hold or have signature authority over.

Not sure what you mean by "unrecognized" country - but I'm fairly sure you will be expected to declare the interest earned on that account and any others.
Cheers,
Bev

[Busybee]

we have been granted a L1B I believe, and the country were our money is, s only regonised by one other non Europeon country due to the political situation.

[Bevdeforges]

Originally Posted by Busybee

we have been granted a L1B I believe, and the country were our money is, s only regonised by one other non Europeon country due to the political situation.

I'm guessing Kosovo here, but if your money is in a bank or some sort of investment account and earning interest, the interest has to be declared on your US tax return once you are US resident.

The only potential problem that might arise would be if you are already paying taxes on the interest and try to use the "foreign tax credit". If the taxes you pay on the account are going to a government the US doesn't recognize, in theory they could deny you the credit for taxes paid. But, when you get to the US and do your first tax return, talk to a tax advisor (CPA, enrolled agent or tax attorney). I believe there are some special rules regarding funds that are "blocked" in any way and this may alleviate the problem. (If your husband is on an L1 visa there is a good chance his employer will offer tax assistance at least the first year or so.)
Cheers,
Bev