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De Telegraaf: Rabobank too strict on US-born Dutchman

Daan Durlacher

4 min

Published on: 04-08-2024 Last modified on: 04-08-2024

De Telegraaf: Rabobank too strict on US-born Dutchman

Summary

A Dutch customer, born in the United States, moved to the Netherlands at the age of two. Although Rabobank suspected, based on Foreign Account Tax Compliance Act (FATCA) obligations, that he was a taxpayer in the United States, the customer indicated that he no longer held U.S. citizenship. This matter was litigated before the Kifid and it was ultimately determined that the customer was not a US person due to the loss of his US nationality due to his service as a professional officer in the Dutch military. Americans Overseas will investigate this case further legally in order to assess the extent to which the settlement this customer was vindicated by is useful for a broader group.

According to a publication in the Dutch daily De Telegraaf, Rabobank took too strict a stand against a Dutchman born in the United States. The bank suspected that the man was a taxpayer in his native country and therefore demanded that he provide a US TIN/SSN or a Certificate of Loss of Nationality (CLN). When he refused to do so, the bank threatened to close his accounts.

The customer did not take that and indicated that he is not a US person, therefore he has no obligation to provide a US TIN/ SSN or CLN. In 2019, he filed a complaint against Rabobank with the Kifid. After nearly five years of litigation, the Financial Complaints Institute ruled that the bank acted too harshly.

The customer did not accept that and indicated that he is not a US person, so he has no obligation to provide a US TIN/ SSN or CLN. In 2019, he filed a complaint against Rabobank with the Kifid. After nearly five years of litigation, the Financial Complaints Institute ruled that the bank acted too harshly.

Loss of U.S. citizenship

Rabobank is required by law to pass tax information of U.S. customers to the Dutch Tax Authorities due to FATCA obligations. This information is then shared with the U.S. tax authorities. However, the customer claims to have lost his U.S. citizenship years ago by serving as a professional officer in the Dutch military.

On Feb. 27, 2024, the Ministry of Finance confirmed that the client is not a US person, which was crucial in determining his tax status. The Dutchman moved to the Netherlands at the age of two and no longer has ties to the US.

Americans Overseas recognizes this problem: lots of stress and expense

The customer argues that Rabobank was “obstinate” in fighting his arguments for years. He experienced much stress and expense in trying to refute his American status.

Americans Overseas recognizes this problem, as many “accidental Americans” or dual citizens here are not conscious tax evaders and should not be approached so harshly. As a result, the Treasury Department’s advice to the NVB is that closing accounts is unnecessary.

Rabobank has since recognized that the customer no longer has US citizenship. The customer does not need to provide a US TIN or CLN and his accounts are no longer threatened with closure.

Damages denied

The client demanded compensation of €5,000 to €10,000 because of the stress and expense the procedure caused him. The complaints assessor rejected this claim because it had been submitted too late in the complaints process. However, Kifid’s Financial Services Disputes Committee acknowledged that the issue caused the customer a great deal of stress and was pleased that a resolution had finally been reached.

The consumer confirmed that this resolved his complaint. However, he wanted the committee to rule on his status as a non-US person, but the committee said it only handles complaints about financial services.

US taxman’s hunt for accidental Americans

The Rabobank customer is not the only Dutchman who faces the problems of being born in the US. Tens of thousands of other compatriots are also troubled by the U.S. tax authorities demanding taxes from U.S.-born individuals. The U.S. is the only developed country that imposes tax liability on its citizens regardless of where they live or work (with or without passports, Green Card holders, and others).

Americans Overseas helps these people avoid double tax assessments in the Netherlands and the US.

Get informed at Americans Overseas

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 the 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 American tax obligations.

Sources:

Written by Daan Durlacher

Co-founder

Daan Durlacher, co-founder of Americans Overseas, belatedly discovered his US Person status and associated tax liability. He founded the company with Michael Littaur in 2012 to inform and assist others with U.S. tax issues.