US tax service targets Dutch nationals who are accidental Americans
Thousands of Dutch people who also have American nationality by birth may be liable for tax in the US and face fines if they don’t file a tax return, broadcaster Nos says on Tuesday.
From September, Dutch banks will be required to hand over information about US nationals’ bank accounts to the IRS.
People who are American by birth but who have never lived or worked there are also required to fill in a tax return but many are unaware of the situation, until now. An estimated 30,000 Dutch citizens also have American nationality.
Nos quotes the case of Monique van Hoevelaak from Driebergen whose ASN bank account was frozen earlier this year because she is a ‘US person’. Van Hoevelaak was born in the US but moved to the Netherlands as a baby.
Mark Petit, who also moved to the Netherlands as a baby, told Nos: ‘I was born there and nothing more. I am Dutch.’ Petit is now looking to renounce his American nationality but that is not proving to be easy.
‘I first need to ask for a social security number, bank details, do a tax return dating back six years and if that is all okay, then I can start proceedings to lose my nationality,’ he said.
The legislation, known as FATCA, affects US citizens all over the world.
The Dutch finance ministry told the broadcaster its hands are tied. ‘Every country determines who is liable for tax. The US bases its requirement on nationality,’ the ministry said. ‘From September, the tax office will begin exchanging information with the IRS.’
‘All American citizens must report worldwide income by filing an annual US income tax return, regardless of whether they also pay taxes elsewhere, regardless of the fact they hold another country’s passport,’ the website of the US consulate in Amsterdam states.
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