Bank account help

[mrpeters 2]

Hi,

I have recently moved over to the states on my K1 visa, but have not yet completely adjusted my status (in the process of getting married atm etc). I received a letter from my bank back in Australia (Citibank). I have pasted it below. How have you all handled this? All of the money in it was earned in Australia and it is only there temporarily until i open my US bank account and transfer it over. Why do they need this information? I can no longer send them a certified copy of my passport etc as I'm not in the country anymore. Would it just be easier to get the money out and close the account. It states if I don't send it within 30 days of getting the letter they will start to charge me backup withholding tax, which is ridiculous as all the money was earned in Australia and I paid taxes on it.

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In accordance with our obligations under the Foreign Account Tax

Compliance Act (FATCA), we have reviewed our records and identified that

you may have an association with the United States (US).

Citibank is required to collect the information on this form for the

purposes of complying with US tax laws (FATCA) and our internal global

policies.

The Foreign Account Tax Compliance Act (FATCA) is a US law aimed at

ensuring that income and assets held by a US person directly in accounts

outside the US, or indirectly through ownership of entities outside the

US, are reported to the U.S tax authorities (Internal Revenue Service -

IRS) via the Australian Tax Office (ATO).

US Person: A United States person is any of the following:

? a citizen of the United States

? an alien lawfully admitted for permanent residence

? an unincorporated association with a substantial number of members who

are citizens of the US or are aliens lawfully admitted for permanent

residence.

? a corporation that is incorporated in the US.

We require that you complete and return the W-8BEN to declare your

status as a non-US person.

Please also provide the following documentation to ensure our records

are correct and up to date;

? certified copy of your current Passport

? certificate of Loss of Nationality of the United States (if you are no

longer a US Person)

[military-wife 9]

that's normal procedure. I used to work at a bank back in Canada and it is require since you live in the U.S. Not sure yet if it applies since you are not yet a permanent resident... I haven't received this yet from my banks in Canada.

All I know is that If you have investment accounts that pay dividends, interests, etc., they are considered "income". From what I read on IRS online, if that income comes from U.S. sources, then it will be taxed. What is considered "U.S. sources", not sure too. I'm not a tax expert. All I know is that the U.S. is strict and requires you to mention all worldwide income that you receive, even though it's from Australia. It's strict in order to prevent tax evasion.

This what I found on IRS:

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.

Not sure again if you are considered a resident alien -- considering that you are not officially a "permanent resident".

Edited November 25, 2015 by military-wife