RTW1

That's a new thing staring from July 1st... before that banks had no use for that information, now they will use it to do their reporting (somewhere in 2015 at the earliest).
But their reporting has nothing to do with your obligation to file your return, just don't forget to include those accounts this year :-).

FredAnderssen

You apparently didn't digest my previous post. I am and have been FATCA compliant.

RTW1

And neither did you.... you always needed to file your tax return.

FATCA only impacts financial institutions, your obligation remain as they always were only now FI's might ask you your TIN because THEY need to do some reporting.

FredAnderssen

FATCA impacts me in that I need to attach the proper paperwork to my 1040 form to be compliant with U.S. tax law. Because I do that, I am compliant. For one who seems to know so much about this topic, that should be obvious. Now you state that FI's "might" ask for my TIN. You stated before that

That sounds like a lot more than "might".

RTW1

The "might" has to do with you being an existing client where your bank might (or might not, up to them) use the $50k threshold to review their clients.

And as far as I know FATCA hasn't brought any new filing requirements for you as a US-person. The 1040/FBAR requirement was already there. Only now some people are beginning to notice.

So, you being complaint with US tax laws and your bank(s) being complaint with FATCA/IGA's are two different things.

But to get back on topic, you can always renounce your citizenship for a "small" fee and some additional account costs. And if you think that will bring relief, think again.... in a few years those banks in Scandinavia will also require you to provide tax numbers for (all) your fiscal residencies.

FredAnderssen

As I also stated in a previous post, I have been compliant with FBAR through my filing of FinCEN form 114 (filed separately from the 1040 form) when my accounts were $10,000 or more. FATCA impacts accounts with $50,000 or more (aggregate) and the proper paperwork in this case is filed with the 1040 form, and yes, this was a new requirement.

It's condescending comments like this that set me off, if you're wondering:

RTW1

I wasn't wondering.... and you must have missed the smiley.
Better read up on the $50k threshold though. That's an (optional) threshold to be applied by banks, and just for reviewing/accepting clients. Nothing to do with what's reported and nothing to do with your filing requirements as an individual.

But enough said.

GUWonder

Banks don't have citizens or dual-citizens, they have customers. I was talking about governments:

These European governments have decided to be more dedicated to the US than to their own citizens or residents who also happen to be citizens of the US, and they are not prohibiting national origin-based discrimination which is the result of this kind of US pursuit. [US citizens abroad must be thinking if their country is (or, if a dual-citizen, their countries are) run by self-hating types and/or those who have an emotional, visceral hostility to their fellow citizens with a material foreign connection.]

Selling out the "small people" -- especially populations that are small minorities -- is easy for governments and companies; and they are doing it by not waging a pitched battle over US extraterritorial grabs via FATCA. Instead they want in on the game, and getting into (or staying in) sort of the same game is their long-hope.

Taking up the matter with Treasury is pointless. Congress in the US can repeal the law. The POTUS can refuse to act upon the law while claiming it abridges the constitutional, foreign powers of the Presidency. European governments can create a coalition of opponents to these kind of extraterritorial efforts by the US and prohibit cooperation that relies upon or fosters a climate of discrimination based on perceived national origin. The problem is that countries and financial institutions are in the main willing surrender monkeys in the face of the US because their material interests trump any sense of moral fiber on these matters.

People outside of the US pursuing renunciation of US citizenship are generally in compliance with US laws/regulations as much or more than their fellow citizens in the US.

GUWonder

I don't know the circumstances of the FTers in this thread to know for sure that your claim is correct or incorrect.

I know for sure that there isn't always a requirement for US citizens to file with the IRS. Lots of US citizens -- mostly younger minors but even some adults -- don't need to file and don't need to be included on a US tax filing; this is in large part because such US citizens have such low (or no) earned income and such very, very little or no unearned income that the tax filing requirement doesn't get triggered. This paragraph is as applicable to US citizens in the US as to US citizens outside of the US.

Whether or not a US person owes tax or not, the tax filing and other reporting requirements remain what they are and is due from or on behalf of most adult US citizens.

STBCypriot

I find this increase in fees to renounce US citizenship outrageous! They say the reason is because of the increase in the number of people renouncing citizenship. The increase in the number of people renouncing citizenship is because of FATCA and people with dual citizenship, mainly by birth, or non-US citizens who have married US citizens but still live outside the US were caught up in this onerous reporting. This increase in fees significantly impacts the little guy (I am one) but is just a drop in the bucket to ska-billionaires.

Note to FredAnderssen: You may be asked by your bank to provide your SS# the next time you pop into your bank to make a transaction. That is what happened to me last week when I went to get a new ATM card.

And, BTW, like FredAnderssen, I have complied and continue to comply with all IRS reporting requirements, FBAR and FATCA since I have been an expat.

Usalv

lol

alanR

Some banks and other financial institutions in the UK are closing accounts of US citizens as it's too expensive to be compliant with US law - especially when UK & EU law may contradict the requirements.

It's the financial version of the TSA - non-US folk avoiding contact with the US if they can avoid it.

There are also reports of people who didn't know they were US citizens - either born in the US to non-US parents or outside the US with one US parent - being affected by this.

bankops

Yes. in general, FATCA creates a significant administrative burden on banks all over the world and has also resulted in many banks deciding no new US-person accounts and they will deal with the existing client base reducing over time.

Now the US has increased the fee from $1XX to $450 in 2008 and now $2.400! I have a feeling though that it will be struck down as being a financial burden that now discriminates against low-income. Can you imagine an educators family of 4 deciding to give up their nationality after 20 years abroad? To the tune of $9.600!

Badenoch

The Canadian government knuckled under to the Americans and are ratting out Canadians who unfortunately also have U.S. citizenship.

I am grateful my grandparents settled a mile north of the St. Mary's river than a mile south.

YKF

What a scam. There is no excuse for racing the price this much other then greed