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.
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.
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.
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:
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.
Understanding the US tax system, the obligations, and all the additional terms can be difficult. Especially if one lives outside of America. Is your question not answered? Contact us.
U.S. citizens and resident aliens who live abroad are generally required to file a federal income tax return and pay taxes on their worldwide income.Read more... about Who is required to file taxes in the US?
Yes, US citizens are required to file taxes on their worldwide income, regardless of where they are living.Read more... about Do US citizens living abroad still have to file taxes in the US?
Received an American check? You can cash your check in the following ways: cash the check at your own bank, transfer to another person (endorsement), cash checks using an online service or cash the check by another bank.Read more... about How can I cash my US check?
US citizens living abroad may be required to file Form 2555 and/or Form 1116 to claim the foreign-earned income exclusion.Read more... about Are there any special tax forms required for US citizens living abroad?
FBAR (Foreign Bank Account Report) filing is the requirement for certain U.S. individuals and entities to report their foreign financial accounts to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. The FBAR filing requirement applies to U.S. persons who have a financial interest in, or signature authority over, one or more foreign financial accounts if the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.Read more... about What is FBAR filing?