August 6, 2011 - Phil Hodgen

FATCA fallout continues

Our client is a resident and citizen of a European country. He has tenuous ties to the United States which we handle by making a treaty election to have him taxed as a resident of his home country rather than the USA.

Guess what? His domestic bank in his home country has presented him with a request to fill in Form W-9. (Form W-9 is used to give a U.S. Social Security Number to a bank).

Wow. When a wholly European bank is dunning its European resident/citizen domestic customer at the behest of the IRS. . . .

At what point is a major foreign bank going to grow a pair?