Tax liability on US bank account interest

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BrendanDub

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What is the tax liability on interest you gain on US funds or deposits? Is this treated in the same way as US dividends or is this just subject to DIRT or some equivalent?
 
Hello, BrendanDub.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->If you submitted an IRS W-8BEN to the payer of the interest, Uncle Sam has no claim to tax in that you are Irish. All this bumpf is covered in a bilateral tax treaty between Ireland and the USA.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->If you submitted a Social Security Number and acted as if you were local, then the payer would be sending you a 1099OID form and the IRS an electronic lovenote about your gain.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->What does this mean? If are a W-8 kinda person and you wish to ignore the 20% owed the Revenue Commissioners, do so at your own peril. Uncle Sam will leave you to it (there is some mention of co-ordination of tax info, but I am not confident this is actually working). But if you have a 1099OID to hand and do not file an IRS 1040/A/E/EZ and someday re-enter the USA, don't be surprised if the Homeland Security goons, the INS and the IRS want to have a chat with you at some undisclosed federally-owned location.<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Best of luck!
 
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