Hope for the Dutch caught in the US tax trap

Hope for the Dutch caught in the US tax trap

FATCA Or Kafka

How was that trap made? The US is trying to detect tax evasion through the dreaded FATCA (Foreign Account Tax Compliance Act). Because of treaties with all countries in the world, this law also applies outside of the United States. US citizens are in the crosshairs of US tax authorities worldwide.

It is unfairly experienced, especially by those who are American by birth (or because their father or mother is American): they end up in a Kafkaesque trap because of all sorts of rules, because:

  1. Their Dutch bank requires them to apply for a US social security number.
  1. This number is linked to their Dutch account.
  1. The linked data is sent to the Dutch tax authorities
  1. The Tax and Customs Administration sends the data to the IRS.
  1. The IRS requests a declaration from the Dutchman. In theory, failure to report could result in fines.

It is difficult to escape this regime. You can revoke your US citizenship at the US Embassy in Amsterdam for a fee of US$2350. But that doesn’t absolve you of the reporting obligation years behind.

So far, only one Dutchman has managed to do this Bypass system.

See also  Are you already playing pickles? The sport is incredibly popular in the US but is on the rise here as well

Leave a Reply

Your email address will not be published. Required fields are marked *