SV650.org - SV650 & Gladius 650 Forum - View Single Post - Gripe of the day

Seeker · 01-08-19, 08:10 AM

Totally baffled! I was a long term Resident Alien (Green card holder) in the US. Since I was out the US for more than 1 year I had to surrender the Green Card (form I-407). I have 401k pension money (I paid in and my company matched it, it's stock market linked). I had to fill out a W8-BEN form which, I thought, stopped me getting taxed by the US. It turns out that I must now fill in a form 8854 for the IRS, which is ok (well, not really) but it asks a yes/no question like this:

Did you become at birth a US citizen and a citizen of another country and do you continue to be a citizen of, and taxed as, a resident of that country?

My answer requires no and yes, I've never been a US citizen. If I get this wrong the IRS will tax me immediately at 30% and then I'll get taxed again by the UK, despite there being a tax treaty to prevent this. There are several similar ambiguous questions.

Edit: It turns out the IRS don't answer question on the 8854 form if you call them, so that helps. (WTF?) They refer you the helpful instructions for the form which don't mention a few of the sections...
Edit 2: I've given up and I'm consulting a professional tax filer (kerching).

01-08-19, 08:10 AM	#7525
Seeker Member Mega Poster Join Date: Jun 2016 Location: NE Lincs Posts: 1,069	Re: Gripe of the day - What is yours? Totally baffled! I was a long term Resident Alien (Green card holder) in the US. Since I was out the US for more than 1 year I had to surrender the Green Card (form I-407). I have 401k pension money (I paid in and my company matched it, it's stock market linked). I had to fill out a W8-BEN form which, I thought, stopped me getting taxed by the US. It turns out that I must now fill in a form 8854 for the IRS, which is ok (well, not really) but it asks a yes/no question like this: Did you become at birth a US citizen and a citizen of another country and do you continue to be a citizen of, and taxed as, a resident of that country? My answer requires no and yes, I've never been a US citizen. If I get this wrong the IRS will tax me immediately at 30% and then I'll get taxed again by the UK, despite there being a tax treaty to prevent this. There are several similar ambiguous questions. Edit: It turns out the IRS don't answer question on the 8854 form if you call them, so that helps. (WTF?) They refer you the helpful instructions for the form which don't mention a few of the sections... Edit 2: I've given up and I'm consulting a professional tax filer (kerching). Last edited by Seeker; 01-08-19 at 10:27 AM.