June 18, 2024

Taylor Daily Press

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Coincidentally all Americans' accounts are now safe

Coincidentally all Americans’ accounts are now safe

All Dutch citizens taxed in the US, incidentally called Americans, will confirm their bank accounts after September 1. The Dutch Banking Association reported this on Friday A letter to Parliament from Secretary of State Marnix van Rij (Finance, CDA). A letter is an answer Letter from the US Treasury Department To the Dutch Ambassador in Washington.
Unscheduled Americans with balances under $50,000 have heard from banks that they can keep their accounts even without a US Tax ID (TIN). Banks are now deciding based on the US letter that they can apply that promise for the time being to groups above €50,000.
Accounts of unplanned Americans (Dutch citizens who are considered Americans in the U.S., for example, by birth in that country or by an American parent) are at risk because of a much broader, offshore tax liability. United States of America. Banks have been trying to enforce that tax liability for years. This requires banks to provide name, address, balance and Tax Identification Number (TIN).

High fines
For the proportion of Americans who are at risk of accidentally losing their bank accounts, the problem is the latter: they don’t have a TIN or don’t want to apply for one because they believe they’re not American.
For a long time, Dutch banks risked being mistaken for banks by Americans without providing such a TIN.incompatible‘. This could result in large fines or exclusion from the International Financial System. To prevent this, it was reported that Americans would accidentally lose their bank account without a TIN.
The finance ministry and the Netherlands embassy have been discussing a solution with the US for years. Two years ago, banks promised not to close accounts till September 1 this year, pending the outcome of those negotiations. Banks have now extended till September 1 irrespective of the balance in the account.

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The letter from US officials did not offer a concrete solution. Detailed guidelines are still being worked out. the idea of’GuidanceAmericans make it clear: they know that banks are not viewed as ‘non-compliant’ if they have followed the guidelines but still cannot issue a TIN. The Americans write that they hope the Dutch banks will not immediately close the accounts now that this has been promised.
Banks have also confirmed this now. “Because of the new letter, no accounts will be closed after September 1, and the banks trust that the United States will continue to work toward a permanent solution to this problem,” Bank Umbrella writes.