FACTA and form W-9 reporting

[painterscabin]

My insurance company FWD just sent me a form W-9 that they want me to fill out, which means submitting my SSN. I've paid into this health and life insurance policy for near four years but I'm thinking just to drop the policy. Yes, I am not happy about the US new policy and that Thailand has signed on. That all aside, this is a small policy enough for a funneral really and the potential hospital stay which I have used. Just curious what some of you other Americans are doing in this situation. Thanks.

[maewang99]

Am I reading you right? This would be the first time you would have otherwise had a Thai connection with your SSN reported to the US? That's a pretty big whopper. I can't imagine that because they already had me in a wire tight trap long before FATCA came along, and I don't just have to file US but Thai as well and have from the gitgo.

Edited October 19, 2014 by maewang99

[painterscabin]

Am I reading you right? This would be the first time you would have otherwise had a Thai connection with your SSN reported to the US? That's a pretty big whopper. I can't imagine that because they already had me in a wire tight trap long before FATCA came along, and I don't just have to file US but Thai as well and have from the gitgo.

This is the first time anyone in Thailand has asked for my SSN even the bank has never asked for it (cross my fingers, that could be next). This form seem like it will be submitted to the IRS by the company. When it comes to this type of thing I'm highly likely to just drop the policy than comply. Like I said this policy is small, not worth that anyone should be interested.

[JimGant]

This is the first time anyone in Thailand has asked for my SSN even the bank has never asked for it (cross my fingers, that could be next).

...and it will be next, as, presumably, you opened any and all Thai bank accounts with your US passport. Thai banks have a couple of years to search existing accounts (pre-July 1,2014) for FATCA 'US person' indicia. And, the most blatent indication would be your US passport. Then, they will send you a W-9 to fill out. No big deal -- your W-9 info is already widespread amongst those you're doing, or have done, financial activitiy with (including insurance companies, at least those that have 'cash value' accounts). That such info will now reside at a foreign bank, or insurance company, should be no cause for concern.

But, yeah, I guess you could close every account and policy you have in Thailand, should they ask you to fill out a W-9.......if that allows you to sleep at night.

[vaultdweller0013]

Well, since you asked: I am filling out my W-9's, filing my FBAR's, and filing true and accurate income tax returns each year. I'm even using Citibank in Thailand as my primary bank, which is great because they send me a 1099 each year that simplifies my tax filing. Yet, despite all this, I still ended up owing $0 US tax on my Thai sourced income because of the myriad of deductions and credits for real residents of foreign countries.And the great things is: I can transfer my funds back to the US, if I desire, without having to even think about whether it will raise flags with the IRS.

Now, while I may believe the US should change its tax policy to be (almost) completely residency/source of income based, along with wide-sweeping simplification by eliminating virtually all deductions and adjusting the marginal tax rates accordingly to maintain the same levels of revenue, I'm not going to let my opinion of the ideal state of affairs make my life more difficult, but that's just me.

With that said, I would be careful about who I gave by SSN to here in Thailand and minimize the number of time I needed to give it out, due to the risk of identity theft, but that is a different story and not FACTA, FBAR, or tax related.