# Letter from UK Bank re: Tax Residence



## MrNovember (Feb 28, 2015)

Hi all,
My wife received a letter from her bank in the UK saying they have info she has a US passport and therefore they will assume she is a US tax resident unless she sends in certified information (see below). We assume this is part of their response to FACTA.

She is a dual US/UK citizen as of 2014 (obtained UK citizenship in April 2014).

Our understanding is that she is not a US tax resident because she resides in the UK, where she's lived since 2006. 

Therefore, we think she needs to send in a certified copy of her British passport. However the letter also says she must send:
- - - - - - - - - 
Valid non-US passport

IN ADDITION TO THIS, EITHER:
Certificate of loss of nationality

Or, one of the following:
The reason that the controlling person/individual does not have a certificate of loss of nationality of the USA despite relinquishing US citizenship
Or
The reason the controlling person/individial did not obtain US citizenship at birth
- - - - - - - - 

The additional parts do NOT apply to her as she is a dual citizen who has retained US citizenship. Does that then imply she is US Tax Resident for the purpose of this letter? She does file every year, but as a non-resident. Therefore the bank letter has confused us quite a bit and of course the letter doesn't really give any guidance or refer to where we can get clearer info (aside from getting independent advice).

Thanks in advance for any guidance!


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## Bevdeforges (Nov 16, 2007)

I suspect the bank has slightly mis-worded their letter. Your wife is subject to US taxation, and thus the bank should be asking her to fill out a W9 form (i.e. giving them her US Social Security number). But you're correct, this does have to do with FATCA.

She should contact the bank, telling them that she is a US citizen (she isn't US resident, but given the way the US does taxes, that does mean she's supposed to be filing US taxes). Actually, she could short-cut the whole discussion by just downloading a W9, filling it out and sending it back to them. Form W-9, Request for Taxpayer Identification Number (TIN) and Certification
Cheers,
Bev


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## MrNovember (Feb 28, 2015)

Thanks so much, helpful as ever Bev! How bad the bank weren't more clear in their wording! She did actually phone them about it and they said they couldn't given any advice. She'll get back in touch and ask about this W9 form. Thank you!


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## maz57 (Apr 17, 2012)

All US citizens are US tax residents, regardless of where they live, where they pay taxes, or any other citizenship they have. If you get a green card and hold it for 8 years or more, you will become (in the eyes of the IRS, at least) a permanent US tax resident as well, even if you later move away from the US.

FATCA is the reason why the bank wants more information about your wife. They have some information (i. e. US "indicia") and they want to clarify so they can report her account info. This won't tell the IRS anything they don't already know in your wife's situation, but it would be understandably bad news for any US citizen living in the UK who isn't up to date (or doesn't even know about!) their US tax obligations.


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## MrNovember (Feb 28, 2015)

Thanks, the good news is her accountant has filed foreign accounts (he did miss her her UK income, though, which we are currently resolving through re-filing). Appreciate the input!


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## jbr439 (Nov 17, 2013)

MrNovember said:


> Hi all,
> ...
> The additional parts do NOT apply to her as she is a dual citizen who has retained US citizenship. Does that then imply she is US Tax Resident for the purpose of this letter? She does file every year, but as a non-resident.
> ...


What does it mean that "She does file every year, but as a non-resident"?
Has she been filing 1040NR returns? If so, I believe that's incorrect as she is a US tax resident (since she's a US citizen) and should have been filing 1040 returns.


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## MrNovember (Feb 28, 2015)

Hi jbr - she's filed the 1040 each year, I suppose the Non-Resident bit is more applicable at state level and now with the ACA implications for health cover we'll need to make sure it's know she's not living in the US. Mind you, that's just our understanding of it


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