robin1234

I personally haven't opened a new US bank account for several years, ie pre-FATCA days. But British people moving to the US post on BE frequently, asking for advice or giving their experiences, good and bad, of arriving in the US and opening a bank account. At least some of these British people have foreign bank accounts and pensions that'll mean they cross the FATCA threshold.

Of course, as newcomers to the US, they usually haven't yet had to submit a tax return etc., so may not know from FATCA ....

theOAP

IMHO:

The wording used by the manager of the branch in response to your query indicates, to me, that this has been an intra-bank pre-emptive CYA directive probably from the corporate compliance officer in head office. The additional information on the Capital One Help site is, IMO, a total red herring. Like Orangepants, I would be fascinated to hear what IRS directive is being referred to.

Robin also brings up the point about any UK (or other foreign) person, upon freshly arriving in the US, wishing to open a new account. Until they file their first 1040 tax return, how would they have any knowledge of FATCA, let alone knowledge of any responsibility they may have to eventually report.

IF this is the result of a new directive from the IRS, then it signals a worrying evolution in the FATCA saga. My guess it's the bank 'rationalising' a defensive position to guard against any possible threating (to the bank) compliance situation that may come about in the future as a result of an IRS investigation into questionable activities concerning foreign sourced funds. (Orangepants- possible pass-through situations?) Pure CYA on the part of the bank.

For now, with the information given on the Capital One site, it would seem prudent for any new arrival in the US (new UKC or returning USC) to avoid Capital One. The OP was aware of FATCA and their situation regards it. A less knowledgeable new arrival may unwittingly make a false statement ('I have no FATCA reporting') when in fact eventually they may.

theOAP

Not related to this thread, but of interest regarding problems with FATCA:

A church in Harpenden, in the UK, has had their account with HSBC closed. (It's now been re-opened.) This is but one of several stories concerning organisations having problems recently. The stem of the problem was a concern over something called f.a.t.c.a. and the need for detailed information on all persons making regular donations to the church. A month ago, there was a similar story in The Guardian. That account was also re-opened after media interest in the story.

BBC Radio 4 - Money Box, HSBC closes church account

Click on the "Closed accounts" segment.

nun

If I ever return to the UK I'll keep my UK assets below the FATCA reporting threshold.

hungryhorace

I'm subject to FATCA reporting and I have _never_ had an issue opening an account, including with Capital One (360), opened in 2013.

theOAP

And you're one of the lucky ones with mainly US based income sources.

The OP has a different problem. They were in the UK for 25 years during which they amassed a foreign pension which translates to more than the (US resident) reporting threshold (possibly in conjunction with other UK accounts).

I wouldn't suggest, in any way, they rid themselves of this valuable pension. As they have noted, they will have this reporting obligation for the foreseeable future. That places them in an impossible situation regards Capital One and any new account opening, at least as things stand now with Capital One terms and conditions.

What's frightening is this appears, from the OP's description, a 'tick the box' question on the application form, so it is intentional and not a misunderstanding by the branch personnel.

nun

Actually, even if I kept the UK accounts below $50k, as a US citizen would I still be subject to FATCA?..... I just wouldn't need to file the 8938.

FATCA must have been written by Messrs Kafta and Orwell.

nun

Company policies evolve and are also unevenly implemented.

Orangepants

Harpenden - a hot bed of criminal activity! I was born and brought up there, Mum and brother still live there. As Mum would say - "never know what those proddies get up to" speaking of course, through the moral superiority of the Catholic Church just next door!

Owen778

FATCA and FBAR are aimed at US citizens, trying to ensure they cannot avoid US taxation by offshoring assets. The hassle and inconvenience for non-US people and institutions is just collateral damage.

theOAP

I assume you meant 'USC resident in the US'?

This is where everything gets very fuzzy. You may not be subject to FATCA reporting (below $50,000), and your aggregate account(s) may not be (legally obligated) to be reported for FATCA purposes (below $50,000), but if the UK FFI reports the account, as they are allowed to do even if below $50,000 by the US/UK IGA and HMRC guidance, does this qualify as 'subject to FATCA reporting'?

mrken30

Having people report their pensions must create a lot of surplus noise in monitoring the real targets of FATCA. I think maybe they will eventually put a reporting minimum on pension funds. The UK pension companies do not have to report FATCA, so there is probably no way to match the figures.

Orangepants

Yes this appears to be an in-house decision. In the industry I am affiliated with, and I have mentioned before, many FIs are ignoring the $50k threshold for individuals and the $250k for entities and reporting all for expediency. I am trying to find out from my contacts whether this may be true for the retail sector.

mrken30

It's unfortunate that it's virtually impossible to move a overseas pension to a US pension. I'm sure there are a lot more workers falling into this category of having overseas pensions with more globalization.

mrken30

Citibank have now requested my US information after 10 years of sending my mail to the US. This was their email.

I am writing to you today as there is an important action we need you to take relating to tax reporting on your account(s) with us.

As the UK government has adopted the Common Reporting Standard (CRS) to protect the integrity of tax systems between countries, Citi is required to collect and report certain information about our clients’ tax residence status.

Information we hold on file indicates you may be tax resident in another CRS jurisdiction and we therefore need you to complete and return the Automatic Exchange of Information Form for Individuals as soon as possible, to ensure we hold accurate and up-to-date information about your tax residency.

Please note, this form is for CRS purposes only and must be completed in addition to any Foreign Account Tax Compliance Act (FATCA) and IRS forms you may have already completed.

Next steps

It is important that you return the completed form before 30 April 2017 to ensure our records are up to date.

Further information is provided on the front page of the form and instructions of how to return your completed form can be found in the Appendix. As Citi does not provide tax advice, you should contact your tax advisor if you require assistance in completing the form.