Would I be taxed for storing money overseas?

[Anonymous]

I am a dual citizen of the US and the UK (Living in the US).

Would I be taxed for opening a high interest UK based bank account and just letting my money sit there.

I do not plan on touching it, would I have to claim this on my US taxes even if the money made on interest would never enter the United States?

[youdontkillmoney]

Read this on foreign financial accounts held abroad, basically, "The interest of the IRS, however, extends beyond accounts in Liechtenstein to accounts anywhere in the world. Consequently, the IRS reminds you to report your worldwide income on your U.S. tax return."

http://www.irs.gov/Businesses/Income-from-Abroad-is-Taxable

[MidnightVoice]

The IRS taxes my money in the UK, even though when I first arrived the INS would not accept that it existed 

Also, the US SS considers a foreign pension a "windfall" and not only taxes it but reduces the US SS pension as well

[Lyythine]

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@Anonymous wrote:

I am a dual citizen of the US and the UK (Living in the US).

Would I be taxed for opening a high interest UK based bank account and just letting my money sit there.

I do not plan on touching it, would I have to claim this on my US taxes even if the money made on interest would never enter the United States?

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In short, yes you would be taxed and yes, you would have to claim it on your tax return.  There are some various exclusions to this, but the rules are crazy.  I also have dual citizenship (US & Italy), and I have yet to figure out a way to make it work for me other than foreign real estate, and even that can be tricky.

[iv]

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@Anonymous wrote:

I am a dual citizen of the US and the UK (Living in the US).

Would I be taxed for opening a high interest UK based bank account and just letting my money sit there.

I do not plan on touching it, would I have to claim this on my US taxes even if the money made on interest would never enter the United States?

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Not only is the interest taxable, the mere existance of the account is reportable under FATCA, even if it was at 0%.

(Assuming the account value hit the minimum reporting thresholds.)