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Hello Mr. Vinícius.
The content of your site is excellent! I found here several answers to questions that no one in my city in Brazil could give. I would like your guidance on the following question:
I made the Final Exit Declaration in 2017. At the time, when I looked up whether my bank had a CDE (Domiciled Abroad Account), I discovered that they didn't offer this option. As I didn't know how long I would be abroad, I opted to keep the account open and didn't formally inform the bank of my non-resident status. I never declared anything again in Brazil.
In the US, I've declared every year since 2017:
i) the current account that remained in Brazil; ii) the existing LCAs and the income obtained.
Now I want to formalize my non-resident status with the bank, close the account in Brazil and bring the money to the USA.
Questions:
1) In Brazil, income from LCAs is exempt from income tax. Even so, should I have declared them through the DIRF because I'm a non-resident?
2) How does the transfer of money from Brazil to the USA look to the IRS? How do I declare it?
Thank you very much.
Vinicius Tersi is a lawyer, specializing in International Tax Law.