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I am a British citizen born to an American mother in Britain.

I went to my local bank in England recently to open a high interest savings account. At one point the clerk asked me if I am a U.S. citizen. Not seeing why that would be his business, I said no.

I understand now that the bank is required to ask this so they can report all their U.S. citizens to the American IRS under FATCA.

How should I proceed at this point? Did I break British law, U.S. law, or just my bank's terms and conditions?

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  • Based on the information you've given, it's not certain whether you would be recognized as a U.S. citizen.
    – Brandin
    Commented Nov 20, 2017 at 14:21
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    @Brandin I have a U.S. passport
    – C H
    Commented Nov 20, 2017 at 14:29
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    Why not just contact your bank and tell them that you double-checked, made a mistake, and do have US citizenship so they can report it? The longer you wait the worse any consequences would probably be.
    – JAB
    Commented Nov 20, 2017 at 22:34
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    You might want to consider renouncing your US citizenship. Otherwise, JAB has the right answer.
    – Martin Bonner supports Monica
    Commented Nov 21, 2017 at 14:32
  • @MartinBonner done
    – JAB
    Commented Nov 21, 2017 at 14:37

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Your best choice of action is probably to contact your bank and tell them that you double-checked, made a mistake, and do have US citizenship. The longer you wait the worse any consequences would probably be.

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I assume your passport has UK as place of birth. That's key. If the bank somehow found out you are also a US citizen, they would likely close your account and possibly send your account info to the IRS if that balance was ever over $10,000.

Pray that the US repeals citizen based taxation (they're working on it), and replaces it with residence/territorial based taxation. Hopefully it makes its way into the current proposed tax reform bill.

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  • And then all the people putting their money in tax shelters would just move their place of residence. I doubt that's the right solution (though it would be for C H).
    – JAB
    Commented Nov 21, 2017 at 14:41

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