Tax/FATCA
Oct 7th 2015, 12:08 pm
#16
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Re: Tax/FATCA
US taxes on citizenship and residency. You must pay tax on your worldwide income. The FBAR is purely informational and even if you don't file it (which is a bad thing if you meet the criteria to require filing) you should still have included any foreign gains on your US tax return.
Oct 7th 2015, 3:14 pm
#17
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Re: Tax/FATCA
If all the information you gave to your accountant included your UK account information then you should be compliant with US law, ie FBARs filed and US tax on UK income and assets paid. You need to ask your accountant what they did.
Is your ISA a cash or stocks and shares one? You also need to get the correct tax code with HMRC and stop tax being withheld at source so file R105 and P85
Is your ISA a cash or stocks and shares one? You also need to get the correct tax code with HMRC and stop tax being withheld at source so file R105 and P85
Oct 7th 2015, 3:18 pm
#18
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Re: Tax/FATCA
I'm afraid you're almost certainly going to have to pay additional tax on the profits from the ISA when you file your corrected return. The US does not recognise the tax-free status of ISAs.
Oct 7th 2015, 3:23 pm
#19
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Re: Tax/FATCA
Yes I'm getting that. If I'd known to do that, I'd have just done it. It was very little revenue and because I was paying UK tax and my tax guy here dealt with my filing & never brought it up I am now kicking myself. Hindsight is a wonderful thing.
Oct 7th 2015, 3:25 pm
#20
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Re: Tax/FATCA
Goodness, this just gets worse and worse. However, if I owe the tax, I owe it. And I'll get it paid. Thanks again
Oct 7th 2015, 4:47 pm
#21
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Re: Tax/FATCA
On the plus side, most ISA's were paying more interest than non ISAs . Also interest rates have not been great. I see that yours is a stocks and shares ISA, so maybe you did better. One suggestion I have is that I use Turbo Tax and employ a CPA then compare the two. Last year my new CPA had missed off property tax from one of my properties. They are only human and can make mistakes. Also it is not their neck on the line if they make a mistake. there are other options such as tax act, H & R block or even just the paper forms. I recommend that you atleast read the paper forms to check if you have missed anything else.
Oct 7th 2015, 9:08 pm
#22
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Re: Tax/FATCA
On the plus side, most ISA's were paying more interest than non ISAs . Also interest rates have not been great. I see that yours is a stocks and shares ISA, so maybe you did better. One suggestion I have is that I use Turbo Tax and employ a CPA then compare the two. Last year my new CPA had missed off property tax from one of my properties. They are only human and can make mistakes. Also it is not their neck on the line if they make a mistake. there are other options such as tax act, H & R block or even just the paper forms. I recommend that you atleast read the paper forms to check if you have missed anything else.
The domestic streamlined is not a bad outcome.
Oct 8th 2015, 4:04 am
#26
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Re: Tax/FATCA
If you have things like investment trusts ie not individual shares, then you will have to complete form 8621 in amended returns because the are PFICs.
As long as you haven't made any contributions to UK pensions while in the US they are probably not an issue.
As long as you haven't made any contributions to UK pensions while in the US they are probably not an issue.
Oct 8th 2015, 7:31 am
#27
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Re: Tax/FATCA
It's only 5% plus accounting fees. Much more pleasant than the alternatives. Presumably you will try & recover this cost entirely from the accountant who provided bad advice in previous years.
Oct 8th 2015, 8:08 am
#28
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Re: Tax/FATCA
Yes, it seems reasonable to think including a stack of PFIC forms in the filings might influence the method used for coming into compliance.
Nun has repeatedly warned of the dangers of not reviewing one's financial housekeeping prior to immigrating to the USA. The experience suffered in this thread should be an additional warning to others. I haven't reviewed the "stickies" for those contemplating a move to the US, but it seems a much more stronger warning might be made for the need for financial housekeeping prior to a move.
Nun has repeatedly warned of the dangers of not reviewing one's financial housekeeping prior to immigrating to the USA. The experience suffered in this thread should be an additional warning to others. I haven't reviewed the "stickies" for those contemplating a move to the US, but it seems a much more stronger warning might be made for the need for financial housekeeping prior to a move.
Oct 8th 2015, 3:22 pm
#29
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Re: Tax/FATCA
TurboTax was mentioned above and I also agree with that suggestion, or the free version of TaxAct. Your situation now is too complicated for either of those I think but by going through the interview section you will see the questions that your accountant should have been asking, particularly knowing that you are a Green Card holder so you may well have foreign income and/or foreign assets.
