Your bank asked if you're American. Here's what happens next.
Under FATCA, banks around the world report accounts held by U.S. persons to the IRS. A letter asking for a W-9 or your U.S. tax ID is usually the moment people realize they're behind. It's also a good moment to fix it, before the IRS reaches out.
Sound familiar?
- Your bank wants a W-9, your Social Security number, or proof you're not a U.S. person.
- You were told your account could be closed if you don't respond.
- You have investments or pensions abroad and aren't sure what has to be reported.
- You've heard of Form 8938 but don't know if it applies to you.
Form 8938 thresholds, for people living abroad
Much higher than for people in the U.S. Many expats don't need Form 8938 at all, even when they do need FBARs.
| Filing status | Last day of the year over | Or at any time over |
|---|---|---|
| Single or married filing separately | $200,000 | $300,000 |
| Married filing jointly | $400,000 | $600,000 |
Thresholds for people who meet the IRS's living-abroad test. U.S. residents have lower ones. Form 8938, explained.
How we handle it
- 1
Read the letter with you
We explain what your bank is asking for, and how long you have to answer.
You: upload the letter.
- 2
Get you compliant
Usually through the Streamlined procedures: returns, FBARs and Form 8938 where needed.
You: upload documents.
- 3
Answer your bank
Once your tax ID and filings are in order, you complete the bank's form with confidence.
You: sign the W-9.
Common questions
Does my bank report my balance to the IRS?
Usually yes, through your country's tax authority or directly. Most countries, including Canada, the UK, Australia and Thailand, have FATCA agreements with the U.S.
What's the difference between Form 8938 and the FBAR?
Both report foreign assets, to different agencies, with different thresholds. The FBAR goes to FinCEN and starts at $10,000; Form 8938 goes with your tax return and starts much higher for people abroad. Many people need both.
Can I just tell my bank I'm not American?
If you're a U.S. citizen, no. Giving a bank false information creates new problems. If you've renounced, you'd show your Certificate of Loss of Nationality instead.
Got a letter from your bank? Let's answer it together.
Upload it with your free consultation request, and our tax team will tell you exactly what to do.
Get in touch →