Comment by csomar
2 years ago
Having a US phone number, bank account, company and a house does not make you a "US-Person". So why the banks ask you these questions?
The banks deal with FATCA with checkboxes. If you cross one incorrectly, I can imagine they need documentation for that. And no bank wants that.
I currently answer yes to all of those questions except owning property in the US. I am not deemed a US person. I carry no obligations or liabilities related to FACTA with my local tax office nor the IRS.
This is purely a procedural thing for a bank. If you qualify as a US Person then the bank is going to withhold additional tax on your accounts and you’ll have to get a rebate for any discrepancies you are owed when you file your returns. While I hate the whole process and think it’s a gross overreach by the US gov, it’s governance 101 stuff for a bank. If you’re dealing with a bank that is incapable of doing this I’d recommend finding different bank. This is like the “no brown m&ms” basic competency check in a band’s tour rider. If they’re not getting this right then who knows where else they’re incompetent.