LaPaz Blog

Paradise in La Paz

Extension IRS Voluntary Offshore Disclosure

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Today one of our accountants announced that IRS extended the deadline for the  previously reported Voluntary Offshore Disclosure from September 23, 2009 to October 15, 2009, in order to “provide relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it.”

The extension will allow tax advisers and attorneys the necessary time to interview and advise their backlog of taxpayers with hidden offshore accounts, and prepare the necessary paperwork to qualify for the special penalty provisions.

So if you’ve been working in Mexico without reporting your income, or have unreported bank accounts, or did not file your forms relating to a Fideicomiso or other trust, you have a few more days to get that done.

Exchanging dollars to pesos

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Exchanging money in La Paz is more challenging these days. The banks I normally use will no longer exchange U.S. dollars for pesos. We have to use a cambio, or money changing service.

I am told this is a government regulation to stem the flow of drug money, but cannot confirm it. It seems to happen periodically. One time the banks can’t/won’t exchange my dollars, the next time they will.

Cambios collect a commission for their service, so you are not getting the best rate on your exchange. Today they are exchanging 12.5 pesos per U.S. dollar, while the bank rate is 13.28. If you exchange, say, $1000.00 U.S.,  the difference is over $60 US.

It may be worth your while to check with your local bank a few days before your trip to La Paz. Our banker at Chase said they need 48 hours to order pesos and will exchange at the bank rate.

Flu In La Paz? No Worries!

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With the swine flu media hysteria toning down, some of you may be anxious to head to Mexico. After a week in Baja, I feel confident to assure that you have a high probability of staying healthy in La Paz, all other things being equal.

I delayed my departure for an intended two-week trip due to a bronchial conditional lingering after a severe winter cold. Not the slightest bit concerned about catching the flu in La Paz, I was more worried about spending two hours in LAX and breathing everyone’s air in the planes.

After clearing Mexican customs in La Paz, travelers were greeted by a friendly crew of doctors and nurses who proceeded to give us cursory physicals, starting by pressing an instrument against our foreheads to take our temperatures. They handed out flyers stating that if we are sick, they want to help us.

There may be isolated cases of flu in La Paz, but no one I talked to heard of anyone who was sick. Some bank tellers and retail cashiers wore face masks, presumably as a preventive measure.

The weather was perfect (okay, 90 F. may sound hot to some people, but it FELT perfect!), I had a blast at the owners’ tournament of the first golf course in La Paz, and by the time I left in one short week, felt better than I have all spring.

If you have spring fever, I suggest you carve out two weeks and head to La Paz!