This post is also classified RUMOR and OPINION and should be read as such.
Eagle1: Multiple meetings have been taking place at Wells Fargo and other banks today preparing execs for the imminent RI of the IQD. I received a specific bit of info today from a Wells Fargo officer who gave some important advice to all of us.
1. If you are a customer of WF, there will be no exchange fees. In other words, whatever the normal exchange rate the bank has is what you will receive -- no 1.5% fee tacked on. ...
2. You will see an 11% currency exchange tax taken out by the IRS on any amount you exchange. You may also be charged a state tax -- depending on where you live.
3. DO NOT -- and I repeat, DO NOT -- tell them that you want to "cash in" some IQD. You are there to "exchange" the IQD for USD.
If you use the phrase, "cash in," depending on where you are and whoever happens to wait on you, your transaction could be treated as "cashing in an investment."
4. Two FINCEN forms have been provided by the IRS. One specifically identifies these transactions as "currency exchange" transactions.
The other refers to them as "currency investments." DO NOT UNDER ANY CIRCUMSTANCES sign any document which treats your exchange as a "currency investment" or you will wind up paying as much as 39.5% in taxes!
This is an important distinction, and if you want to avoid paying through the nose to the IRS, avoid any references to the word "investment" on any document that you sign at the bank (or broker, or currency-trader).
I have no objection to paying a fair and reasonable tax on any transaction, but I'm not the least bit interested in someone finessing the phraseology in order to trick me into paying more tax than Congress has signed onto. Hope that's a help to everyone.
Blessings on you.
FinCEN FORM 104 specifically states "Currency Exchange" at Part II number 33 of the form. Also look on page four of the form at Item 33 and you will see "Currency Exchange"
Here is the FinCEN site which shows the correct form the bank will use to report the transaction will be FinCEN Form 104.
Peace, Eagle Has Landed
*** Please refer to the advice of a professional as to which Form(s) you should sign when exchanging IQD or VND for USD.