What Should I Do If My Bank Asked Me toComplete a Form W9?

What Should I Do If My Bank Asked Me to Complete a Form W9?

Author：Sophie Luo 羅霞December 28, 2021

What Should I Do If My Bank Asked Me toComplete a Form W9?

In order to ensure that all Americans who have income abroad pay taxes in accordance with the law and declare their overseas assets honestly, the IRS enacted the "Foreign Account TaxCompliance Act", also known as the FATCA, which requires Foreign financial institutions sign an agreement with the IRS to provide Americans’ overseas account information.

If your identity meets any of the following, you will need to cooperate with the bank to fill out the W-9 form when opening an account.

1. U.S. citizens

2. Green card holders

3. U.S. tax residents who meet the 183-day test

USCPA Sophie Luo (羅霞) reminds you that before filling out the W-9 form, you must check whether you did file your tax returns and the reports of Foreign Bank and Financial Accounts (FBAR) in the past. Otherwise, once the United States discovers that you have failed to report inthe past, there will be possible penalties as blow,

Willful - Failure to File FBAR: Up to the greater of$124,588, or 50 percent of the amount in the account at the time of theviolation.

Non-Willful Violation: Up to $12,459 foreach negligent violation.

Read more: Am I a U.S. Resident Alien? How DoI Calculate the 183 Days Living in U.S.?