Oh yes, indeed. As a US citizen, you are ALWAYS a "resident fiscale" of the US - until and unless you renounce your US citizenship (which costs $2350 to boot). But yes, you can be "resident fiscale" of two (or more) countries, depending on their tax rules.
Cheers,
Bev

 

That's the very same question, and bank, that I mistakenly answered 'no' to. Bad me.

 

But you don't have US nationality, so it's not really anywhere near as "serious" if you "misunderstood the question." Those with a US place of birth can't really avoid the issue.
Cheers,
Bev

 

Ah, but the question was quite specific. It asked if I was a US citizen or a green card holder ...

 

Personally, having suffered enough over the past 3 years filling in countless FATCA forms for clients, I would be tempted to tick No even if the answer is yes. (Caveat; I really am not american in any way).

How or why should they check? Literally BILLIONS of FATCA forms have been lodged with US department of Criminals (it really is called something like that).

The original sums for the FATCA act went something like it would bring in 600bn extra tax, cost the US 100bn and the rest of the world would be forced to pay a further 200bn in costs.

The actuality (I read recently) was only about a couple of billion in extra tax, yet over 200bn in US costs and more than 600bn paid by the rest of the world. Because they forgot that forcing EVERY bank in the western world to fill in an 8 page form on almost every customer, US or not, was likely to produce gazillions of pages of useless information.

So who are they going to concentrate their limited resources upon? Checking taxes from those honest enough to say yes... and finding low hanging fruit.

My verdict. If you genuinely left the US (and have a relatively common name) nothing will happen for decades. Of course of you own a house, a business and are the only Tarquin Fortescue-Chomondly-Smythe in the whole US of A it might be a different story.

Regards


Ian

 

Oops. Own an apartment. But it's for sale ...

 

Honestly, it really does depend on your assessment of your level of risk in these matters. Those most at risk are the genuine US citizens, born in the US, who still have financial assets they depend on back in the US. (Most notably certain types of "deferred tax retirement savings plans" or any large-ish investment, bank or other accounts.)

The main reason that significant (to you, not necessarily to the tax authority) accounts constitute a "risk" is that, should the IRS or US Treasury decide to clamp down on the regulations, those could easily be seized in their entirety with little or no recourse until whatever potential debt or obligation to the Treasury was fulfilled or dropped - even if the presumed obligation was only a few dollars. Those with no US based assets have little or nothing to lose by being "creative" with their response to the various bits of paper.
Cheers,
Bev

 

I”m still trying to wrap my head around what constitutes an asset. I receive both Social Security and monthly disbursements from a pension fund through my ex (community share award). Do those count as assets? Or does it apply only to existing properties, investments, accounts, etc., that you personally own?

 

Worst possible case - if for some strange reason the IRS were to decide that you were evading your tax obligation to the US, they could theoretically seize financial accounts in your name. If your ex is paying you from his pension fund, then that probably wouldn't be at risk. (Though that fund might be seized by the IRS if your ex was thought to be fiddling his taxes.) If he had to set up a fund for you to draw from - and that fund is in your name, then yeah, it might be "at risk."

Your US SS might be - certainly if you're being paid in your own name based on your own work history in the US. (Though that seems to be something of a last resort in tax cases.) But your SS payments are income, not an "asset."

Net-net however, the IRS has only very limited enforcement powers for anything outside the US.
Cheers,
Bev

 

Thanks, Bev. The pension fund itself pays me directly so my ex is never personally involved (thank goodness!). It is a separate pension account in my name, created by the employer, into which funds are channeled each month and from which the payments are made. The SS is 100% mine, based on years of employment and wages received. I try to do as much as I can to keep off of any tax agnecy’s radar, but am concerned about messing up out of sheer ignorance.

 

I know lots of new expats worry about "messing up" or "making a mistake" - but honestly, it's wasted energy. You need to continue to report your US source income (i.e. anything for which there is a W2, 1099 or other official reporting document issued at the end of the year) just like you always do, and any foreign source income in a "good faith" manner that looks reasonable.

Unless the IRS has reason to suspect that you are hiding vast sums that will result in a big tax "recovery" for them, they're really not interested in messing around too much with an overseas return.
Cheers,
Bev

 

Bev, your reply made me smile. I know I’ll make mistakes and routinely embarrass myself until I get the hang of things (and beyond). While I don’t obsess about it, I’d be lying if I said the thought doesn’t cross my mind now and again. My goal is to avoid the serious bloopers. And, fortunately, I don’t have vast sums of anything so I’ll file my little 1099s and call it done. Thanks!