Bank Account Closures An Added Worry for Travelers Stuck in U.S.

Foreign individuals stuck in the U.S. due to coronavirus-related travel restrictions are at risk of having their overseas bank accounts closed, a major consequence on top of the inconvenience.

The reason: a requirement that foreign banks report U.S. account holders to the IRS, and a statute that says an individual becomes a U.S. resident if in the country for 183 consecutive days. Banks may decide to shut the account rather than dealing with the grueling reporting requirements, leaving individuals in a major bind.

To shield themselves from risks, individuals should contact their bank quickly if they are in the ...