Feel the pain. Haven’t been able to transfer my IRA to a superfund without donating 50% to either the IRS or the ATO. I draw down the minimum every year and declare it as income after paying 10% to the IRS. But then I’m retired
1 Like
I got two written rulings from the IRS on a matter of capital gains taxes. Didn’t think the first letter was correct so asked for a second ruling to clarify. Tried to apply that ruling the next year and was fined for following their written advice —when I quoted and sent copies of the IRS responses to my questions they simply said that their snail mail responses couldn’t be relied on and fine would stand. :(.
Yes I could have fought the situation and most likely would have won in court but the cost of the court process would have been horrendous . Just can’t trust them without taking them to court.
1 Like
I am envious and that explains your ability to wave them off! We citizens do not have it so easy. The renunciation path can be a very ugly and for those with many assets, a very expensive experience, as well as potentially being barred from travel to the US.
I am a dual citizen and fill in the obligatory FinCen, tax forms, etc. I have nothing to add to this conversation, only my commiserations for having to deal with the stuff. I often consider renouncing my citizenship - ridiculous that it’s so difficult to maintain the US side. No one tells you it will be this hard to be an expat.
3 Likes
Here’s a quick update on my efforts to find my tax that was withheld:
I sent a registered letter to the withholding agent in Sydney (I haven’t been able to find a phone number for them) with all my contact details, my US Social Security number, an explanation of the problem and a copy of the 1042 form I received from directshares. According to the tracking, it was received within 2 days. It’s been about 2 weeks now and I have heard NOTHING! How hard would it be to send an email??
So now what? Do I send another registered letter? Show up at their address and see if they will let me in? Try to contact someone at Citibank in the US (I have no idea WHO I would contact)? Fake my own death and be done with the whole thing? Any suggestions? I’m leaning toward faking my death at this point. 
2 Likes
Hi kristyandru1, if you PM the details of the agent maybe I can find something for you re contacts. FWIW they might not know what to do themselves and could be researching it, but that is no reason for their lack of communication.
Another thought I am embarrassed not to have considered is that a direct complaint to the US company you hold shares in might be worthwhile. Most have an investor contact from their web page. It might be that the US company is the one withholding the dollars at the US point of dividend distribution; but one would reasonably expect the agent to inform you of that. The potentially missing link there is how your shares are registered (if it is to the holding agent, they remain the problem as it would be their role to be middleman to the company) but if they are in your own name you might be on a go.
I once told my partner that when I die she will inherit the IRS relationship. She was not amused.
2 Likes
Its been a long time ago now but we changed our tax year. Like you we were doing someones taxes every 6 months and having to estimate some incomes since reports were always off. Wasn’t long before our US income dwindled to the point where we applied to not file. It just meant that the US took 30% which we then claimed from the ATO.
Maybe the laws have changed but I don’t think that is an option any more. Everything I can find says specifically that if you are a US citizen, you have to file US taxes. Even if you have no US income. They’ve added a few other things to file for foreign bank or investment accounts. They seem to think everyone is a money launderer! Even when your foreign accounts are in the same country you live in.
We should be so fortunate to be able to similarly ‘walk’ without our consequences 
