Is my client a US Person?

Linda Mabelis

2 min
Published on: 27-07-2024 Last modified on: 29-07-2024

Summary

Accountants, tax specialists and bookkeepers beware: Your clients may be taxpayers in the US. Inform them to avoid problems.

Identification of a US Person

As a financial professional, you may not be familiar with U.S. laws and regulations, but it is essential to realize that your Dutch clients may also be taxable in the United States. A tax treaty does not relieve the client from filing a tax return.

You can determine whether someone is a US person based on several indicators, such as:

  • Place of birth in the U.S.
  • U.S. parent(s)
  • (Expired) green card
  • Previously worked in the U.S. or regularly present in the U.S.
  • Nationalized in the US

If any of these factors apply, chances are that your client has a tax obligation in the  U.S.. Even without a US passport, a person may still be considered a US person.

Serious problems due to FATCA

Banks in the Netherlands must actively approach account holders and investigate whether they are also taxable in a country other than the Netherlands. To prevent money laundering and tax fraud, financial institutions annually pass on the names, account numbers, and balances of US persons to the IRS (US tax authority).

The account holder himself must also pass this data through a return so that the IRS can check the data against each other. People often do not know this; it is good to alert your client to this so he does not face unexpected surprises.

If the bank has indications that the customer has US Person status then the bank has a duty to register a Social Security Number due to FATCA legislation. The bank is finable if it does not have an SSN in its betsandIf an SSN (U.S. version of the BSN) is not provided, accounts may be closed and services denied. This can have serious consequences such as blocked accounts, denied or canceled mortgages, and forced sales of investments.

More information can be found here:

How can I contact you and get more information?

Do you have questions or would like more information for free? Americans Overseas is ready to help you. Please feel free to contact us.

Please email your questions and requests to support@americansoverseas.org. Our team strives to respond as quickly as possible.

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Written by Linda Mabelis

General Manager & Partner

Linda Mabelis is the General Manager and Owner at Americans Overseas, dedicated to helping individuals find the right tax attorney for their unique situations. With extensive work experience and a deep understanding of the complexities facing Americans Overseas, Linda is committed to providing personalized and effective solutions.

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