Unexpected request to confirm tax residency - Halifax

krzysztow

Some of you guys described this letter as unclear and written in a strange way- I feel the same, still trying to understand what is the point of it.
But the only problem is, I need to reply by December 15th; the letter is in UK and I'm in Poland (my family sent me photos of it). And it needs my signature. So I am looking on Internet for a blank form to print it here, sign it and send to Lloyds.
I've been googling for some time but I can't find it.
If anyone knows where I can download this form I would be grateful. Thanks

EdSwippet

Cook_County wrote: »

You will be reported on under both FATCA & CRS, but why is this a concern?

Understandably, people find it offensive when their private financial data is sent to the tax authorities of a country with which they have no connection. In this case, the US, under FATCA.

EdSwippet

krzysztow wrote: »

Some of you guys described this letter as unclear and written in a strange way- I feel the same, still trying to understand what is the point of it.

If it's 'just' a FATCA letter, the point of it is to prove that you are not American. It's all very silly really, but the US is on a witch-hunt here, searching for pennies behind the back of the sofa, and so passed a law forcing UK banks to turn over any US citizens they have in their customer base. Almost uniquely in the world, the US makes its citizens pay US tax even if they don't -- and perhaps never have! -- lived in the US.

To make matters worse, the UK caved in to this, and imported US law into UK law in something called the FATCA intergovernmental agreement (aka gunboat diplomacy on the part of the US).

krzysztow wrote: »

But the only problem is, I need to reply by December 15th; the letter is in UK and I'm in Poland (my family sent me photos of it).

Not very long to reply, then. Can you just print the photos (enlarging as necessary), sign the printout and return it? It won't be very pretty, but I would think that ought to do.

I'm assuming you are not a US citizen, of course. CRS is a different beast from FATCA, but doesn't concern itself with citizenship so is a lesser issue.

Alicezsa

Thank you so much for your replies. I feel I am not alone...
I received the letter today from 'Lloyds Bank plc Bristol BX1 1LT'. I don't know whether it's genuine and feeling nervous. I am not British, just study here, and the letter mentioned my nationality. So I am worrying whether I will be punished if I do not send back some form... there isn't any form in the envelope! I am completely confused with the terms and the law things. I think I will go to the branch and ask them before the deadline:(

lisa110rry

I was born a US Citizen, as was my son (although born n the UK). He has received this letter from HSBC and is having to fly home on Wednesday to deal with it, along with other banking issues.

Neither of us has assets in the US, are you saying we might have to pay US tax on our UK/other incomes?

booksurr

lisa110rry wrote: »

I was born a US Citizen, as was my son (although born n the UK). He has received this letter from HSBC and is having to fly home on Wednesday to deal with it, along with other banking issues.

Neither of us has assets in the US, are you saying we might have to pay US tax on our UK/other incomes?

have you read the IRS website???? "If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside."

That is why some US citizens choose to renounce their citizenship.... it saves them tax!

https://www.irs.gov/individuals/international-taxpayers/u-s-citizens-and-resident-aliens-abroad

https://www.irs.gov/individuals/international-taxpayers/u-s-citizens-and-resident-aliens-abroad-filing-requirements

lisa110rry

Nope, I hadn't read the website! I have lived in the UK since 1977 when I was 21 years old!

booksurr

lisa110rry wrote: »

Nope, I hadn't read the website! I have lived in the UK since 1977 when I was 21 years old!

then it may be more cost effective for you to renounce your US citizenship than try to file 40 years of missed tax returns

Cook_County

booksurr wrote: »

then it may be more cost effective for you to renounce your US citizenship than try to file 40 years of missed tax returns

If you renounce without being US tax compliant for the 5 years prior to renunciation you automatically become subject to the expatriation tax.

booksurr

Cook_County wrote: »

If you renounce without being US tax compliant for the 5 years prior to renunciation you automatically become subject to the expatriation tax.

indeed, but lisa110rry is (apparently) exactly the sort of US citizen that these letters are trying to catch, ie those who probably (certainly?) have a US tax liability.

of course without knowing her figures, one cannot say if she has anything to pay against her liability nor which is cheaper, expiration tax or 40 years of back taxes. Also I know nothing about US timelimits, so such draconian backtaxes may of course be rubbish, but it does seem that her position is one in need of professional advice and support from someone who does know the US system before she returns "the letter" and draws attention to herself?