Accidental Americans threatened losing their Dutch bank account
30 November 2020
Conflicting U.S. and Dutch jurisdiction jeopardizes accidental Americans' entitlement to their Dutch bank account. These Americans, typically persons unaware of their U.S. citizenship acquired by birth right or by having an American parent, may be subject to U.S. tax rules. An estimated 40,000 accidental Americans live in The Netherlands.
The U.S. Foreign Account Tax Compliance Act (Fatca) requires that these accidental Americans apply for a Tax Identification Number (TIN), while Dutch Financial institutes are required to share information about their U.S. account holders. This may lead to administrative burden and tax bills.
Financial institutes, despite moral support from the Dutch cabinet, have few options but to comply with U.S. regulations concerning their citizens. The Dutch bank federation NVB warns that Dutch bank account owned by these accidental Americans be revoked if the Facta is enacted upon. In order to avoid this, accidental Americans should either apply for a U.S. TIN or start a procedure to renounce their U.S. citizenship.
More information can be found on the Dutch Accidental American interest group at accidentalamericans.nl