Dutch people who are also Americans, even though they sometimes do not know it themselves, have to incur a lot of costs to meet their tax obligations in the US. In total, tens of thousands of people have to deal with this.
AMSTERDAM – Many tens of thousands of Dutch who also have the American nationality, may become the victims of a strict new tax law in the United States. The law is designed to detect undeclared savings, but also affects ordinary citizens around the world who are US citizens or have a green card, and have not filed a tax return in the United States.
The new tax law Fatca (Foreign Account Tax Compliance Act) took effect in 2013 but is making headlines this month. The Dutch tax authorities are providing data to the IRS at the end of this year on citizens living in the Netherlands who hold US citizenship.
The Dutch banks have tracked down ‘US Persons’ in their customer database and transferred these to the Dutch tax authorities. The banks were obliged to do this under an agreement concluded with the Netherlands and America, said a spokesperson of the Dutch Banking Association.
The measure applies to 45,000 US citizens in the Netherlands and 100,000 Dutch ‘green card holders’. It affects people born in America, such as children of Shell employees in the United States, or for example, TV presenter Eva Jinek born to Czech parents in Oklahoma.
It also applies to Dutch people with an American father or mother. These are often people who have never lived in America and have no US passport or social security number (SSN). They usually do not realise that they have to do a tax return in the US. Read the whole article (in Dutch) here.
Source: Parool 23-12-2015
Author: Ton Damen
Article: Amsterdamse Amerikaan helpt lotgenoten door ‘malle molen’ fiscus VS
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?