According to Dutch News: Dutch MPs debated the problem of accidental Americans, who face losing their Dutch bank accounts because they also have the US nationality.
A majority of MPs want finance minister Hoekstra to take action. “We don’t have time to think about this for long. These people are now losing their bank account and a solution must now be found.,” parliamentarian Helma Lodders (VVD) said in NRC Handelsblad.
Dutch banks threatening to close accounts
The banks are threatening to close the accounts of people with American nationality, unless they can furnish them with a TIN/SSN. or CLN. There are thousands of Dutch nationals with also the American nationality who do not have a tax number because they have never lived or worked in the United States.
American legislation FATCA and accidental Americans
The American legislation, known as FATCA (Foreign Account Tax Compliance Act) requires all US citizens to provide the US government with information about any financial assets including bank accounts, houses and more. It also requires non-US banks with American clients to provide the IRS with information about those assets.
It is estimated that some 20,000 people fall into the category accidental American. A spokesman from Dutch banking association (NVB) said that since its introduction in 2013, the sector has informed customers about US legislation, and has also warned Dutch politicians about the consequences.
Bank agreement, EU letter to US authorities
Finance minister Hoekstra told the MPs that the banks have agreed not to close the accounts of accidental Americans. In addition, the EU is preparing a letter to US authorities calling for talks on the problem at EU level.
Read our previous coverage of FATCA and the EU:
- American answer to tax problems US persons in Europe
- FATCA EU hearing: European citizens have a long way to go
- EU debates Accidental Americans, so close yet so far
Americans Overseas: information for Accidental Americans
Americans Overseas informs local and European parliaments about the effects and problems European citizens have with these (recently) enforced laws.
We started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic, and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations.
If you have more questions about the consequences of FATCA for the accidental Americans, you can contact us at Americans Overseas.