(edit title) American got inheritance from another EU country.. Live in Sweden, how to report to US? Options

[Boston23]

I'm totally confused. I received a large inheritance from a family member in another EU country, but I'm an American living in Sweden. I know that Sweden abolished the inheritance tax, and in any case, inheritance tax was already paid in the country where the relative died. I am guessing I need to report this to the IRS somehow? Anyone been through this?

[entry]

In America even the dead pay taxes(and then become registered Democrat voters), it does not matter where/when the money was earned or recieved. If you cannot hide the money you have to pay the IRS. Call the US Embassy in Stockholm to find out if there is a way out. -Paul

[hjoian]

Do you disclose your Swedish account to the IRS? Any reason why you cannot open another account to pay this inheritance into? As you have stated,tax has already been paid, so unless you actually want to give more of it away to the IRS,then declare it. What exactly are you asking , how to avoid paying anymore tax on it?

Stand by for posters to offer the use of their own bank accounts for a small fee or annual percentage!

[klubbnika]

Why report it at all?

[trumanshow]

As far as i understand if the money ends up in your Swedish bank account, skatterverket will be sniffing around you like the proverbial dog on heat. they 'scan' on a weekly basis as i realized when i went into my bank to update them with my personnummer changing from samordnungsnummer and they told me that they had already been informed. Quite an impressive internal surveillance system going on in this country.

[Mib]

From what I have read in the past, inheritance tax rules don't always follow the normal double taxation agreements between countires, including the EU. Therefore, if the inheritance level justifies it, invest in a tax expert. It may save you a lot or put your mind at rest.

Logic states that the taxes were paid by the deceased estate and therefore, you shouldn't have to pay any extra, but it seems logic is not always followed with inheritance and especially when you are an American citizen. It seems that even if there is no tax due, you are still obliged to inform the IRS as you have to report all of your bank accounts and your partner's financials even if they're not an American citizen.

[Mib]

Just did a google on inhertance tax from a UK perspective and looking at the info. I would pay for professional advice...although double taxation agreements should be adhered to...there seems to be a few situations such as your domicile status, whether the inheritance involves property, trusts etc and may well attract capital gains tax. So...buy some good advice.

[klubbnika]

As far as i understand if the money ends up in your Swedish bank account, skatterverket will be sniffing around you like the proverbial dog on heat. they 'scan' on a w ... (show full quote)

As far as i understand if the money ends up in your Swedish bank account, skatterverket will be sniffing around you like the proverbial dog on heat. they 'scan' on a weekly basis as i realized when i went into my bank to update them with my personnummer changing from samordnungsnummer and they told me that they had already been informed. Quite an impressive internal surveillance system going on in this country. ... (hide full quote)

Good point. Don't put your inherited money in a Swedish bank.

[Yorkshireman]

There is absolutely nothing wrong with having it transfered to a Swedish Bank!

Sums over a certain amount are reported to the Tax office, they want to catch people with foreign incomes or money laundring. They may ask You where the funds came from, show that it was an inheritance, and everything is perfectly OK. No inheritance tax.

You will, if/when the large sum generates any income (interest) have to pay income-from-capital on that each year ... that is normal.

If I remember correctly the US does not tax foreign inheritance, though I have a feeling You do have to report it, again they will jsut be looking fo rdodgy dealings, not for adding more tax. Most countries accept that in general inheritance taxes are paid by the estate in the country where the person died, and do not double tax.

You will probably get into a bigger mess/trouble by trying to hide it, or not declare it.

[Bender B Rodriquez]

As far as i understand if the money ends up in your Swedish bank account, skatterverket will be sniffing around you like the proverbial dog on heat. they 'scan' on a w ... (show full quote)

As far as i understand if the money ends up in your Swedish bank account, skatterverket will be sniffing around you like the proverbial dog on heat. they 'scan' on a weekly basis as i realized when i went into my bank to update them with my personnummer changing from samordnungsnummer and they told me that they had already been informed. Quite an impressive internal surveillance system going on in this country. ... (hide full quote)

Skatteverket has no insight into your bank account due to bank secrecy laws. Foreign transactions exceeding 150000 per year are reported by the bank to the tax office, but the tax office cannot see any of your transactions or balances.

The bank continuosly updates information about your address from the tax office address register and that's how they got your new personnnummer. It is the bank that does this, not the tax office. Every time you move and register a new address with the tax office, banks and other companies will update their registers automatically.

Also, as long as you can show that the money is from inheritance you will not have any problems at all with the tax office.

[Boston23]

Hi!

Thanks everyone for your suggestions. I have already spoke with Skatteverket and they said that there would be no problems on the Swedish side, but the country from where the money leaves might ask questions about where the money came from in the first place. I know that the IRS can be a nightmare so I want to do everything right and make sure they know about it just in case. I don't want to end up having to pay millions in fees for not reporting it, and in any case, I have nothing to hide.

Good idea about calling the embassy. I've also sent a message to the IRS office in Paris and am waiting to see what they say. I've not yet disclosed my account in Sweden to the IRS as I'm not currently earning enough money to be required to file taxes, and my bank account here doesn't have that much money in it either to be required to file with the IRS. (The money hasn't come through yet).

Can anyone recommend a tax expert they have used who would be able to advise me on this?

Thank you as always!!