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bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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UK TAX - I was born in the USA but celebrated my first birthday in the

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I was born in the USA but celebrated my first birthday in the UK and have lived here since. However, I still hold a U.S. passport and recently received some inheritence from my mother and stepfather's estate, both of whom are British. I put this money into a savings account but have now been asked by my bank to fill out a FATCA. I have attempted this 3 times and have now been informed for the 3rd time that there is an issue with the form and I have to do it again. I have worked all my life in the UK and paid N.I. and tax here. Can you please advise on what I should do? Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Here is the US Department of The Treasury explanation of the FATCA: ' FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. FFIs are encouraged to either directly register with the IRS to comply with the FATCA regulations (and FFI agreement, if applicable) or comply with the FATCA Intergovernmental Agreements (IGA) treated as in effect in their jurisdictions. For access to the FATCA regulations and administrative guidance related to FATCA and to learn about taxpayer obligations please visit the Internal Revenue Service FATCA Page.' As you are not an US tax payer the form is irrelevant to you; you are liable only to UK taxation only being a British resident despite holding an US passport. If this is an UK bank asking you to complete the form then tell them not to be so stupid. If it is an US bank then tell them that you are not, and never have been, an US taxpayer. Under UK tax law any inheritance is received free of tax, any tax due having been paid by executors or administartors before distribution. The US Inheritance Tax system works in generally the same manner. I fear someone in the banking system is being exceptionally stupid. I do hope that my reply has been of assistance.
Expert:  MyVirtualCPA replied 1 year ago.
Thank you for your question- I'm Megan and I'm from accross the pond. You are a US citizen -- since you were born in the US. The only way to get around that is to renounce your citizenship. As a US taxpayer (which you do not pay tax to the US because of treaty benefits ) you must disclose foreign financial assets and transactions. NO tax is due for this. No tax is due in the US for an inheritance, either. Do not worry about taxes, but do file the forms. \ Please let me know if you need anything additional, if not, please rate positive.
Expert:  bigduckontax replied 1 year ago.
I am not sure that to complete these forms is adviseable. You are not subject to US taxation at all. I myself spent so much time in the States a couple of years ago that I was telephoned by a most polite official from the IRS and explained my income and UK taxation. He assured me that the matter was now closed. I still hold to the view that your bank is being excessively stupid.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience: FCCA FCMA CGMA ACIS
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Customer: replied 1 year ago.
I called the Bank and told them the advice you all gave me but they are insisting that I fill out there form as it is from the IRS. I asked them if this was the case why am I not being contacted by the IRS, instead I am receiving official letters from HSBC Bank. They will not advise or help with this and I am at my wits end and do not know how to deal with it, because I do not understand any of it .
Expert:  bigduckontax replied 1 year ago.
Change your bank account. I left HSBC as my main bankers a few years ago after increasingly poor service. I would tell them politely to take a running jump, but then I hate banks on principle. Thank you for your excellent support.
Expert:  TaxRobin replied 1 year ago.
The UK entered into a reporting agreement with the US and in that agreement individuals that are present in the UK must have their accounts reported to the US if the individual is a US person.You are a US person based on all you have stated. The US tax laws are not the same as UK, being non present in the country does not change a US citizen's reporting obligation even if no tax is due.The W8 BEN is not really that complicated. You will find that any bank you go to in the UK will want the W8.
Expert:  TaxRobin replied 1 year ago.
If an individual's account holds any of the following eight criteria, banks may request further information/documentation to determine if the individual is a US person under FATCA.US citizenship or US residenceUS Tax residenceUS place of birthUS address including US PO boxesUS telephone numberrepeating payment instructions to pay amounts to a US address or an account maintained in the USAcurrent Power of Attorney or signatory authority granted to a person with a US addressin care of or hold mail address which is the sole address for the account holder.