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I opened an account with HSBC with sizable savings and after the account was opened the branch manager contacted me and asked for my last year's tax return(s). I provided a copy of Form 1040 (2 pages) but the manager requested the complete return(s), by which he meant all the supporting forms and schedules (Schedules A, B, C, D, etc.). I provided all those forms but this is the first time a bank has asked me for tax return(s). My question is when they ask for tax return(s) does it mean Form 1040 or all other supporting forms? 

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Tax returns only reveal names, addresses and social security numbers. Bank managers have those data already.

GoldenSacks (Mar. 21, 2017 @ 12:44p) |

1.25% is not that much, and you can find close to that elsewhere.  I'd cancel the request and wait til they have another... (more)

ntr91 (Mar. 21, 2017 @ 1:27p) |

Well that would make filing my tax returns easier. I've memorized my name, address, and SSN.

Kidding aside, they have a ... (more)

marginoferror (Mar. 21, 2017 @ 4:11p) |

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Sorry I can't answer your question but why would you be banking with HSBC? They're a terrible bank.

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how much money are we talking about and i don't see why they would care. why did you not open it at chase or bank of america

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It was a promotional savings account.

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RussellJohnson said:   Sorry I can't answer your question but why would you be banking with HSBC? They're a terrible bank.
  The only reason to bank with them is new account bonuses. They are terrible to deal with.

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I would have demanded they return all my money and close the accounts. They have absolutely no right to that information.

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Tell them that the KYC regulation does not require disclosure of full tax returns for deposit accounts and if they're not willing to back down then a complaint with CFPB will in order so ask the manager to consult with their compliance Dept. Worse outcome will be that they will close your account and send you a check in the mail.

Your other choice is to do as they say.

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ach1199 said:   Tell them that the KYC regulation does not require disclosure of full tax returns for deposit accounts ...
   I'm just curious, does this mean they can ask for "partial" tax returns, and if so, which forms/schedules exactly? 

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Ask them for a copy of their last years tax returns, together with all supporting documents, to prove they aren't still laundering money.  I mean, you wouldn't just trust a known criminal organization?

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ToddC said:   
ach1199 said:   Tell them that the KYC regulation does not require disclosure of full tax returns for deposit accounts ...
   I'm just curious, does this mean they can ask for "partial" tax returns, and if so, which forms/schedules exactly? 

  They can ask for anything. You don't have it to give it to them. About 10 years ago, Wells Fargo told me that had to have a list of my assets. I told them to go to hell and they decided they could make an "exception in my case".

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It could also be a ploy to get targeted wealthy customer information to push their products.

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ToddC said:   ach1199 said:   Tell them that the KYC regulation does not require disclosure of full tax returns for deposit accounts ...
   I'm just curious, does this mean they can ask for "partial" tax returns, and if so, which forms/schedules exactly? 



For KYC purpose, they can ask for your employment type and annual income. You don't have to prove any of that. Of course, they may claim that proof employment and income is required by them to open an account and if you fail to provide the info then they can refuse your deposit acct. Plain and simple. Sometimes that threat of a complaint to CFPB causes them to back off, but not always.

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GoldenSacks said:   It could also be a ploy to get targeted wealthy customer information to push their products.
  That's exactly what it is.

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Unless HSBC is offering you a massively better deal than other banks who don't make such unusual requests - I would tell them no.

Back in the "golden age" of 0%, no-fee balance transfers AmEx insisted that they needed  my tax returns to increase some of my credit card limits above $100K. (They seemed well aware that I'd just use this extra "headroom" to make larger balance transfers.)  I said no, so these limits remained at just under that, and the only result was that I profited slightly less. 

I understand that a credit card is not the same as a deposit account, but frankly, HSBC should care less about your tax info. for a deposit account than for a credit card!  I have no regrets, however.  As others have said - your tax info. is not their business.  In the age of ID theft, it's even more important to be cautious about your tax info.

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They probably don't make much on their promos and that is why promotions have expiration dates to knock down rates. However, they intend to gather wealthy depositors and then always direct them to their "financial advisers" for milking.
 

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cajundavid said:   
ToddC said:   
ach1199 said:   Tell them that the KYC regulation does not require disclosure of full tax returns for deposit accounts ...
   I'm just curious, does this mean they can ask for "partial" tax returns, and if so, which forms/schedules exactly? 

  They can ask for anything. You don't have it to give it to them. About 10 years ago, Wells Fargo told me that had to have a list of my assets. I told them to go to hell and they decided they could make an "exception in my case".

  HSBC will likely close your account. They've sent me several account closure notifications.

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Tell them that you are being audited and that the IRS will not let you release them.
( Worked for Donald...)

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Part of their money-laundering settlement requires them to go above and beyond?

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limerickey said:   Part of their money-laundering settlement requires them to go above and beyond?
  I really doubt the regulators would require them to collect the customers' full tax forms.  Really doubt it but there is an old saying in the country I was born in:  "The one who got scalded by boiling milk once, always takes the first sip of ice cold buttermilk with a great caution for rest of his life"

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I believe there was a similar thread to this a few months ago,it seems the settlement got HSBC spooked and they're going overboard and essentially it's "If you wanna deal with the crap then please use us" now.
That OR they only want people making over a certain amount, whether for mitigation or for promotional offers/upselling?

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About 10 years ago, Citibank pulled this crap on me when I applied for a credit card. They and demanded a notarized statement from my accountant. They said it's because of some sort of anti-terror law because I use a PO Box. I told them to F off.

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I wouldn't have sent in my tax returns, not even my 1040. I would have called HSBC corporate headquaters and complained to their fraud division. Something similar happened in the Michelle Brown Story with a mortgage broker, and her identity was almost completely stolen by a bank employee.

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greling said:   I wouldn't have sent in my tax returns, not even my 1040. I would have called HSBC corporate headquaters and complained to their fraud division. Something similar happened in the Michelle Brown Story with a mortgage broker, and her identity was almost completely stolen by a bank employee.
  Tax returns only reveal names, addresses and social security numbers. Bank managers have those data already.

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ToddC said:   It was a promotional savings account.
  1.25% is not that much, and you can find close to that elsewhere.  I'd cancel the request and wait til they have another cash offer for opening a new checking account.

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GoldenSacks said:   
greling said:   I wouldn't have sent in my tax returns, not even my 1040. I would have called HSBC corporate headquaters and complained to their fraud division. Something similar happened in the Michelle Brown Story with a mortgage broker, and her identity was almost completely stolen by a bank employee.
  Tax returns only reveal names, addresses and social security numbers. Bank managers have those data already.

  Well that would make filing my tax returns easier. I've memorized my name, address, and SSN.

Kidding aside, they have a lot more information than that. Aside from the obvious numbers on the return, they contain information about where you bank, what investments you hold, details on properties you own, details on your family, details on foreign activities, details on your business activities, details on partnership interests you hold, and a lot more. A lot of the information is simply none of the bank's business.

OP - in answer to your question, when they ask for your tax return, it means whatever they want it to mean. It's not a legal requirement to obtain your tax return, so they can decide what it means.

If, for whatever reason, you're asked this again and still want to open an account with the bank, why not ask them exactly what information they need. Then send them a redacted copy of the return only with the information they need. Maybe get in the habit of responding to every request with "why do you need that?"

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