# U.S. tax liability for dual citizen with French bank account (FATCA)



## kmelt86 (Oct 16, 2015)

Hi all,

I am a rather hand-to-mouth artist/student type in my late 20's who just moved to Europe with nothing but a few thousand dollars in cash in my pocket.

I left my finances rather screwed up in the States: An overdrawn checking account, $50k in student loan and credit card debt, $500 in federal back taxes, an unpaid $500 speeding ticket...

I was able to open a bank account in France at Credit Agricole where I used my E.U. passport as my identifying document.

Unfortunately, my snoopy bank clerk saw that I had listed San Francisco as my birthplace, and is now hounding me to fill out FATCA compliance forms which ask for my SSN.

My question is: Is the money in my E.U. bank account at any serious risk for being debited against my will by any financial institutions (public or private) in the U.S.? Even with established E.U. citizenship?

I'm not proud of the state in which I left my finances in America, but I simply cannot afford to address these issues right now with €2500 to my name.

Merci d'avance,

kmelt86


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## Bevdeforges (Nov 16, 2007)

At the moment, no. But the French bank does have to report back to the US on the existence of your account and any interest income that is paid to the account. Think of it as them preparing a 1099-INT for the IRS. 

Your US bank accounts will continue to be screwed up - and they'll do with them whatever they can. But first of all, 2500€ won't generate any taxes owed, so that's not a problem. And unless something changes big time, the IRS can only grab your US based accounts. 

Do your bank and your conseiller a favor and fill out the W-9 form and then forget about it. They can do what they need to to keep their banking license in the US, and that will most likely be the last you hear about it. Now, when you hit the lottery or get famous for being rich, things will change. But by then it won't be that difficult to resolve the problems.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

I assume that means the total value of your non-U.S. accounts has not hit $10,000. A reasonable assumption "with €2500 to [your] name," but it's still an assumption.

If this assumption is wrong, I'm probably going to have different advice.

By the way, have you looked into income-based repayment of that student loan debt? Chances are pretty good you could avoid repaying and clear the debt from the books.


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## kmelt86 (Oct 16, 2015)

For context, the catalyst for all of this is that my mercenary ex-employer cheated me out of a large bonus in California which totally effed up my personal finances, but I was actually making quite good money as a hotel manager, and intend to make good money again once I jump the fluency hurdle.

As for the student loans, I'd rather wait for Bernie Sanders to grant me amnesty. Until then, I'll consider myself back in black on the Riviera


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## Nononymous (Jul 12, 2011)

There's a relatively unknown loophole with student loans: if you qualify for income-based repayment then move overseas and your income does not exceed the FEIE threshold (almost $100k) your US taxable income is zero and, presto, so are your student loan payments until such time as the whole thing is forgiven (25 years I believe). A few more details to consider (particularly the forgiveness being treated as a taxable benefit in one lump sum) and the loophole might one day close, but worth looking into.


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## BBCWatcher (Dec 28, 2012)

Exactly. You could have been making payments of zero and clocking down that loan all this while. Amnesty was already available. Unfortunately now you might not be able to switch to IBR since the loan is well and truly delinquent, but it's something you should check.


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