Form 720 for UK life insurance
Sep 13th 2016, 12:04 am
#1
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Thread Starter
Joined: Jan 2010
Location: Austin, Texas
Posts: 54
Form 720 for UK life insurance
I have 3 UK life insurance policies, one with a small surrender value. The latter is reported on 8938 & FBAR. Policies are paid annually. I have been a US tax payer since 2007.
I have never done a quarterly Form 720 or paid a 1% excise tax on any premiums.
1) Do I need to do the Form 720?
My accountant says:
If so,
2) Which policies do I need to include? Just the one with a surrender value, or them all?
3) Do I have have to pay a quarter of 1% every quarter, or file the form once a year after I pay the premium?
4) How should I deal with delinquent filings?
A lot of effort for $20 a year...
Wondering what others have done. Thanks!
I have never done a quarterly Form 720 or paid a 1% excise tax on any premiums.
1) Do I need to do the Form 720?
My accountant says:
Excise tax is still chargeable by the U.S. Whilst Article 7 (5) of the UK US tax treaty has provisions for an exemption, Article 1 (4) allows the U.S. to tax its citizens and residents irrespective of what the tax treaty states. Certain exceptions to Article 1(4) apply, however, Article 7(5) is not one of the exemptions.
2) Which policies do I need to include? Just the one with a surrender value, or them all?
3) Do I have have to pay a quarter of 1% every quarter, or file the form once a year after I pay the premium?
4) How should I deal with delinquent filings?
A lot of effort for $20 a year...
Wondering what others have done. Thanks!
Sep 15th 2016, 6:01 pm
#2
Forum Regular
Thread Starter
Joined: Jan 2010
Location: Austin, Texas
Posts: 54
Re: Form 720 for UK life insurance
Well, I answered one of my questions: there's something called a 720X for amended submissions. The question is, what to amend and how far back to go?
