Data exchange with the United States
If you are a U.S. citizen, you must always file a tax return in the United States. It does not matter where you live.
We transfer your financial data to the IRS
Worldwide, all financial institutions, such as banks and insurance companies, are required to transmit financial data of U.S. citizens to the U.S. tax authorities, the Internal Revenue Service (IRS). This is a consequence of a U.S. law, called the FACTA (Foreign Account Tax Compliance Act). Therefore, we transfer your financial information to the IRS once we have received it from the financial institutions.
The United States also sends us financial data of Dutch nationals who have income or assets in the United States.
Are you an American citizen?
To determine whether you are in fact a US citizen, you can expect a questionnaire from your financial institution. You will probably also be sent this questionnaire if you work for a U.S. organization. You are a U.S. citizen if, for example, you have a U.S. passport, or if you were born in the United States.
No double taxation on the same income
If you are an American citizen and live in the Netherlands, you may have to file 2 tax returns: 1 in the Netherlands and 1 in the United States. To avoid you having to pay tax on the same income in both countries, the Netherlands and the United States have made agreements.
Usually the United States will set off the tax you paid in the Netherlands against the tax in the United States - on the same income. However, because there are different tax rules in both countries, this can have an impact on the final amount. For example, if you have an exemption in the Netherlands, but you do have to pay tax in the United States. Or if the Netherlands does not see an amount as income, but the United States does.
In the Netherlands, you can get double tax relief if you live in the Netherlands and have income in the United States. Read more under I have income from 2 countries - do I pay tax on the same income in both countries?