US born individuals who don’t hold US nationality are facing asset freeze over the impossibility to provide US tax numbers.
Given the US tax law developments banks fear accepting relationships or maintaining business relationships with client linked to the US, making them subject to specific data collection measures and refusing business or freezing assets based on a one size fits all rule.
According to reported information there are somewhere between 300,000 and 500,000 accidental Americans in the EU, who know face complex banking and financial relationships given their inability to produce specific US documentations which they simply cannot access or possess.
This situation shows that financial and credit institutions are failing to clearly understand US rules for taxation.
To increase complexity, in some cases US tax authorities impose penalties and interest on unknown penalties to accidental citizens who after are to decided whether they resign to their citizenship or pay significant amounts to the US tax authorities. 5as per reported information).