How does the legal immigration status of a citizen impact banking accounts?
Posted on November 7th, 2009 by admin
Banking
My cousin passed away and his wife was from Japan. She moved back to Japan and didn’t fill out the right paperwork to earn permanent legal citizenship. She was emotionally devastated and just didn’t get the paperwork done in time. So now they won’t let her back in the US. Bank of America is telling her they are going to withhold her funds unless she fill out some form called called W-8BEN. This makes no sense to me she has been treated so badly. Can the bank do something like this
My cousin passed away and his wife was from Japan. She moved back to Japan and didn’t fill out the right paperwork to earn permanent legal citizenship. She was emotionally devastated and just didn’t get the paperwork done in time. So now they won’t let her back in the US. Bank of America is telling her they are going to withhold her funds unless she fill out some form called called W-8BEN. This makes no sense to me she has been treated so badly. Can the bank do something like this
Filed under: Immigration
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yes under this new patriot act anything is possible. banks want to make sure the money is legit as well as the person. they will freeze the account and will not let your cousin withdraw any money until you show proof she was legal in US
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I suspect it is a tax form. A bank has to report if anyone takes out more than $10,000. She should ask an accountant.
Here. It is because since she is no longer in the country the US would have a hard time collecting tax. Once she has filed her tax return she should get back anything withheld above the tax due amount. But check with an accountant all the same.
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Actually the citizenship doesn’t matter with Bank of America. It’s the money they want. This is a typical trick they play. My father (an American citizen) passed away and they refused to release or close his account on the pretense of forms that had to be filled out. By the time we had completed the forms-game there was not much money left in the account they had just about cleaned it out in various fees. This also happened to my account. I tried to close an account with them and by the time I finished the forms-game they had taken out a substantial amount in so-called fees.
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I believe you when you say she’s been treated badly. That’s one of the reasons why the United States is NOT loved in the rest of the world. They treat citizens of other countries like trash.
It all has to do with taxes, that’s all the US is interested in. They don’t care about the person, just how much money that person is going to pay on taxes.
The W-8BEN is an IRS form that will identify the submitter as a “non-resident alien”. All for the purpose of taxes, as I said.
Maybe she should just submit that form and get it done with.
I understand there are rules and people must follow them, but treating them badly won’t help in any way.
Ask those who in good faith are trying to get a visa at any American Embassy, to come visit the US. They are treated as if they were criminals … in their own country!!!!.
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There is no short and easy answer to this. She does have to file with the feds and the state because depending on the size of your cousin’s estate, the Feds will withhold up to 55% of the estate in taxes. It’s to prevent foreigners from inheriting money and taking it out of the country. State inheritance taxes vary by state, but there, citizenship status doesn’t matter.
A few years ago, the a lot of the banking laws changed especially with regard to non-citizens (but also with regard to citizens – basically your banking information is no longer secret).
I’d say hire a good accountant on her behalf or see an estate lawyer. If it’s only a matter of filling out the form, then great, but they will still come after her for the estate tax filings. That’s a must. My advice is to file the necessary paperwork with the IRS rightaway before she incurs fees and penalties.
… and yes, banks do this regularly. They want to see clearance from the IRS that the taxes have been paid.