ekim

@Adventine @seekingthetruth Thanks for the input. To add, the insurance policy don't have an investment attached to it. No dividends as well. It is a very old plan that does not exist anymore in new offerings. Regarding the payout benefit, I was also surprised about it as I don't remember anything about it 20 years ago when I sign up for it. No one died and I never filed any claim ever since and I am not a beneficiary. It was communicated to me by the AIA representative after paying off the premium for 20 years and the amount was calculated after that. They said I am entitled to receive this insurance benefit. Looks like a one time payoff and this is not a surrender cash value. I will try to dig the policy documents but I can't even search the plan online. I don't have any account in the Philippines and won't be able to visit soon so the only way to claim the benefit is via international wire transfer. I can't authorize someone to claim it. Just trying to figure out the tax implication without spending much hiring a CPA since the amount is small to warrant it.

@Adventine @seekingthetruth Any input on this scenario: AIA Philam Life insurance policy in the Philippines with surrender cash value of less than $1,000 USD. I believe it is not required to report it to FBAR since it doesn't meet the treshold. This year, it has a benefit payout of less than $10,000 (no payout in prior years) and the only feasible way to claim the benefit is via wire transfer from Phil AIA/Bank to the US Bank account. I believe this need to be reported in the income tax return but not in FBAR. Am I correct? And do I need to report it in succedding years even though there is no payout? Thanks.

Thanks for the reply.

Is the wire transfer a taxable event? Will the bank report it to the IRS?