The banks send out those letters to cover their own, um, "posterior" - since they can be penalized if they were ever to be audited by the IRS (highly unlikely, BTW) and it was found that they were not reporting the s they are supposed to be reporting.

Certain folks on this forum will tell you to lie - but I'll let them explain their reasoning for that approach themselves. There is no real risk to reporting the truth - including your US SS number and whatever else they ask for. If you read the bilateral agreement that outlines what information they must report, there are always quite a few s that aren't reportable. Add to that, at least so far, there is little to no evidence that the IRS has the foggiest intention of doing anything with all that data they receive every year.

The IRS has been underfunded and understaffed for decades now, and the agency is not well loved by the Republicans coming into power next month. There are still zillions of "accidental Americans" living overseas who are not aware of (or certainly not clear on) their need (or lack thereof) to file US income tax returns from overseas. For the time being, there is still always the option to use the "Streamlined compliance procedure" to get right with the IRS by backfiling a few years - but there is no evidence (again) that doing so actually does anything for you. They don't even acknowledge that they have received and reviewed what you send them, much less send you notification that they have "accepted" your excuses for not knowing you were supposed to be filing. So, until and unless you get prominently wealthy and known to be a US citizen (like Boris Johnson, when he sold his house in London) laying low is probably a perfectly safe way to go.

Anyhow, some folks here have varying opinions on this, so I will leave it to them to convince you of other paths.

 

Thanks very much @Bevdeforges for taking the time to get back to me. Yes I came across that Boris Johnson story, thankfully I am not wealthy or famous. Okay I will wait to hear what others say but sounds like good advice. I'm still considering not replying to my bank at all as I can't see what the comeback from that is. Many thanks!

 

I will advocate for option (c) - lie to the bank. If you are only required to complete a form, not walk into the bank with your port or birth certificate to validate the answer you give them, then this problem goes away forever. If you refuse to answer - option (a) - then you bring yourself to their attention and are reported, but you also risk closure. If you disclose US citizenship and provide an SSN - option (b) - then you will have some very basic info reported. The concern here is not that the IRS will one day hunt you down, but that the bank will deny you financial and investment services beyond basic banking.

If you have a British-sounding rather than American-sounding place of birth on your UK port (which does not show country of birth, only place of birth) then you could use in of option (a). I've heard a few reports of that working well for people.

 

Even banks in Europe and around the world got wise in this....If your place of birth is in the U.S. they know you are automatically an American. So if you lie, you will have to explain yourself at some point...

 

@Harry Moles thank you very much for your reply. Interesting to hear a different take on this, and definitely given more for me to think about. Ignoring the letter, originally my preferred option, is starting to sound unwise! Many thanks for taking the time to offer your views

 

Thanks!

 

If you ignore the letter the bank won't give up and go away, unfortunately. It is not the path of least resistance. From a compliance and policy perspective they'd rather have the wrong answer than no answer.

 

Had letter from UK bank ( offshore branch) was living in Asia ignored the first then got a second replied - then a third asking for more info…. Just reply and get it done with they won’t give up like the other poster said they have to cover their oops upside your head lol

 

I don't know about UK but in a lot of "accidental Americans" have big problems and sometimes get their bank s cancelled because the bank doesn't want to deal with the reporting requirements for U.S. citizens. This gets even worse should you decide to open a brokerage ....The ultimate solution if you have no intention to go back to the U.S. is to give up your citizenship. Btw, you are a U.S. citizen and legally you are required to file tax return with your worldwide income. You may ignore this but your UK bank does not and this ignorance will cause more problems down the road.

 

OK, if you outright lie to your bank, you probably won't suffer any direct consequences (as long as your birthplace is outside the US) - at least not immediately. But, there is the risk of having them shut down your should they have any reason to question your response. Also, I highly suspect that in the case of those they might "suspect" of being US "persons" (not just citizens), they probably just include those folks in the list of s they send to the IRS. (, this is a CYA for the banks.)

If you should choose to renounce your US citizenship, you can always do that - but just be aware that it costs $2350 (despite frequent rumors that "they are going to reduce the fee back to the old $450). Renunciation can have some "consequences" if you have ties back to the US or any inclination to perhaps return there some day - for work or retirement, perhaps. It shouldn't be a problem if you just go back to visit now and then (as a tourist) but be aware that you'll have to navigate the ESTA system, which can be tricky for former US citizens.

 

Yes unfortunately the form is asking me to fill in my place of birth and my place of birth is not British sounding, my driving licence says I was born in the US etc. So I am not sure that lying is an option in this scenario. So I am thinking I can give them my SSN, transfer my savings to my husband and hope that will be an end to it?!

 

Transferring your savings will reduce whatever is reported, but it can have tax consequences if you're getting income from those savings, don't forget.

 

Hi all, I hope you’re well, I got same latter received from bank FATCA and CRS
And my switch to other bank because they move from my area , and my is closed once is switch near 2 year, I’m resident in uk, but I’m from italy
My email received :

Please confirm your tax residency information
We recently wrote to you asking you to complete an 'Individual self-certification form'.
We haven't received your form back yet and we need you to complete and send it back to us as soon as possible.
If you need either the address to send it back to, or another copy of the form, you can find them under 'Forms: Barclays Bank UK PLC Business and Personal Banking Clients' at home.barclays/aeoi
Why we need this information
By law, we have to provide certain information about some of our customers to tax authorities. We're asking you to complete a self-certification form so that we know the information we have about you is correct. If it's not, a tax authority might you directly.
We can't advise on where you're deemed to be resident for tax purposes, or give advice on any other tax matters. If you're not sure, please seek independent tax advice.
Any advices I appreciate a lots

 

Hi all, I hope you’re well, I got same latter received from bank FATCA and CRS

Please confirm your tax residency information
We recently wrote to you asking you to complete an 'Individual self-certification form'.
We haven't received your form back yet and we need you to complete and send it back to us as soon as possible.
If you need either the address to send it back to, or another copy of the form, you can find them under 'Forms: Barclays Bank UK PLC Business and Personal Banking Clients' at home.barclays/aeoi

Just tell them you are currently resident in UK, and YOU DO NOT HAVE USA CITIZENSHIP.

 

They send these forms out every couple of years. And yes, my Italian friends who live here in got similar forms from their French banks. It's an EU/OECD thing - apparently they survey all "foreigners" who hold s in the various countries.

 

Hi thanks for advice I was not sure why I got this I’m residence in uk

You go it because you are a customer of the Financial Institution. They will be required by UK law to collect the tax residency information of all of their customers.

It's an EU/OECD thing - apparently they survey all "foreigners" who hold s in the various countries.

Its actually a global thing (only about 50-60 countries have not signed or have not indicated they will sign the multi-lateral agreement). Its an obligation under the common reporting standard.. basically FATCA for everyone other than the US. I have read the text of the CRS in a very long time, but basically signatory countries undertake the automatic exchange of financial information between tax agencies - replacing the old "on request" process that pre-dated it.

To be able to share information with the correct country (countries) there is typically enabling legislation that then requires financial institutions to collect this information.

 

You go it because you are a customer of the Financial Institution. They will be required by UK law to collect the tax residency information of all of their customers.



Its actually a global thing (only about 50-60 countries have not signed or have not indicated they will sign the multi-lateral agreement). Its an obligation under the common reporting standard.. basically FATCA for everyone other than the US. I have read the text of the CRS in a very long time, but basically signatory countries undertake the automatic exchange of financial information between tax agencies - replacing the old "on request" process that pre-dated it.

To be able to share information with the correct country (countries) there is typically enabling legislation that then requires financial institutions to collect this information.

for your information, FATCA is for US only, CRS is for those from the other 135 countries that signed the Summer of 2023 OECD agreement on sharing of tax inforlmation. The CRS form has you indicate whether or not you are a citizen of the US. IF US then you need to fill in the FATCA information.

 

My 2 cents worth: I am an American expat retired in Thailand so also a Thai tax resident but I don't pay any local taxes due to the DTA between my two countries. Last year the local banks too sent out letters or emails advising their customers too fill out CSR (non-US citizens) or FATCA (US citizens) paperwork. In addition for the US persons, in filling out that short questionaire, it says one must fill out the IRS form 7 certifying a foreign address which one "swears to accuracy" when signed. As some people will say, lie and ignore - but there have been stories of bank s locked down or closed if people ignore that. By filling out the required personal data, one IMHO will not ever be bothered by the IRS as this is a result of the OECD agreement signed in the summer of 2023 by 136 countries. Many of the US expats here that have opened bank s since the beginning of the FATCA reporting, many years ago filled out the necessary paperwork with the bank at that time such as providing one's social security number which previously was not needed to open an at a local bank. Anyway, some people here too ignore the requests for filing of those forms but I haven't heard any stories yet from those who did ignore. I checked with my local bank and was told that when I opened my with them 5 years ago, all the necessary info was provided at that time so ignore any requests from them about that documentation. I of course also have to do the FBAR (Foreign Bank Reporting) and note that on my income tax forms. Again, only for US persons. But IMHO you will not ever have any problems if you fill in that paperwork and forward to whomever. Best of luck!

 

FATCA is for Americans CRS is the standard for all not US!

No. Fatca is not just for Americans. The FATCA IGAs are for anyone who is considered a tax resident of the US.
While under US law that includes all US Citizens it covers a host of others including Permanent Residents, Resident Aliens, Non-Resident Aliens who have elected to be treated as US persons and more.

for your information, FATCA is for US only, CRS is for those from the other 135 countries that signed the Summer of 2023 OECD agreement on sharing of tax inforlmation. The CRS form has you indicate whether or not you are a citizen of the US. IF US then you need to fill in the FATCA information.

And CRS is not limited to those "from" a signatory country. Again it is all about tax residence. You don't have to be from a country to be considered a tax resident. Indeed that specific distinction is limited to a small number of countries the US being the most significant (the others mostly focused on citizens moving to tax havens)

Last year the local banks too sent out letters or emails advising their customers too fill out CSR (non-US citizens) or FATCA (US citizens) paperwork. In addition for the US persons, in filling out that short questionaire, it says one must fill out the IRS form 7 certifying a foreign address which one "swears to accuracy" when signed.

Given most countries introduce enabling legislation, you need to fill in the information required under local law that directs financial institutions what to collect and in some circumstances how. So your experience will be different to the OP in the UK, and for me in Australia despite all three countries g an IGA based on the same model agreement (model 1)