Are you a Danish citizen with an American background, and did you recently receive a letter from your Danish bank about FATCA? You are advised not to ignore this letter. These are the most important points you have to know about the letter from your Danish bank.
What is FATCA?
Since 2014, Danish banks have been sending letters to Danish Americans informing them of the Foreign Account Tax Compliance Act (FATCA). The letters state that the recipient’s American citizenship may trigger a requirement for the bank to report information about their accounts to the US Internal Revenue Service (IRS).
Danish Americans who have never lived in the US may be surprised to receive such a letter. However, FATCA is a US law that requires foreign financial institutions to report information about Americans’ accounts to the IRS. This includes accounts held by Americans who have never lived in the US.
What do banks report under FATCA?
Danish banks like Vestysbank, Sybank, Danske Bank or the Lån & Spar Bank are required to send these letters because they are considered “foreign financial institutions” under FATCA. The letters are sent to Danish Americans who are considered “US persons” under FATCA.
US persons include US citizens and green card holders, as well as some people who have never lived in the US. Danish Americans who receive these letters should not be alarmed.
I received a FATCA erklæring letter from my Danish bank
If you received a FATCA erklæring letter from your bank, it does not mean that you have done anything wrong. It is simply a request for information about your account. You should respond to the letter as soon as possible.
If you do not, your account may be closed or blocked.
The bottom line is that it’s wise to be aware of your American tax obligations and undertake steps to file the necessary tax returns: Americans Overseas can assist you in these matters free of charge and without obligations.
Need more information about FATCA erklæring and your American tax obligation?
We, the founders of Americans Overseas, were born in the Netherlands and obtained our American nationality through our (American) mother.
When we heard about the US tax system for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fined or pick up other problems?), and panic (what should I do?). It is (unfortunately) true that there is an additional American tax levy.
But there’s no information from local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.
That’s why we started this initiative to help people from all over the world by providing proper information about the US tax system 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.
Are you a Danish American? If you have more questions about FATCA erklæring and the American tax system, you can contact us at Americans Overseas.