I am a dual citizen (USA and Japan) and am to looking to set up a NISA account on Interactive Brokers. In signing up for the account, I was asked which citizenships I hold, which complicates things a bit. I could state that I have only a Japanese citizenship or that I have both. I understand there could be some risks with the way that I answer this question. I believe these are my options:
1) State that I have both citizenships. The Japanese tax office flags this, which, worst case scenario, could lead to the government seizing my Japanese passport since they do not allow dual citizenships.
2) State that I have Japanese citizenship (omitting the US citizenship). All should go through fine in setting up the NISA account on the Japanese side. However, if the IRS typically receives information from the Japanese government about financial accounts of American citizens, will the IRS flag this as suspicious when we file the FBAR and include this account?
3) Refrain from setting up a NISA account. The risks on the Japan and American side outweigh the possible benefits of tax-advantaged investments.
Does anyone have experience with registering for a NISA as a US/Japan dual citizen? Any advice?
by IspeakGreenspanish