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Tax Help (stressed out)

Tax Help (stressed out)

Old Apr 8th 2019, 9:15 am
  #46  
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Default Re: Tax Help (stressed out)

Speaking as someone who has been receiving distributions from a UK pension scheme that has trustees I can say that I have never reported it as a trust to the IRS.

I report the distributions with a substitute 1099-R and in the associated document 4856? Explain what it is.

I have been been using this method for 12 years now. The pension is a DB plan so I have no options to choose investments etc
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Old Apr 8th 2019, 11:15 am
  #47  
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Default Re: Tax Help (stressed out)

Originally Posted by Hotscot View Post
You didn't contribute more than your employer.
You're not a high value executive.

And in answer to an earlier question...yes..many UK occupational pensions are set up like 'trusts'.
But not in the eyes of the IRS.

Any more questions on this please PM your credit card details.
Ok gotcha I will remember this when I chat with the CPA, I hope he agrees that it is not deemed a trust and doesn't cost us a fortune or give us the run around.

Haha only if I were made of money

Originally Posted by durham_lad View Post

Speaking as someone who has been receiving distributions from a UK pension scheme that has trustees I can say that I have never reported it as a trust to the IRS.

I report the distributions with a substitute 1099-R and in the associated document 4856? Explain what it is.

I have been been using this method for 12 years now. The pension is a DB plan so I have no options to choose investments etc
I see I think it's a 4852? I can update the investment programme but can only choose 1 of 4 I don't think I can make much change other than that.
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Old Apr 8th 2019, 11:42 am
  #48  
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Default Re: Tax Help (stressed out)

Hopefully your CPA has experience with British expats. Not all CPAs are created equally.
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Old Apr 8th 2019, 1:48 pm
  #49  
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Default Re: Tax Help (stressed out)

There focus is on international tax and have done expatriate services before so I assume they have, will soon find out .
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Old Apr 8th 2019, 3:07 pm
  #50  
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Default Re: Tax Help (stressed out)

Will you report back please Dee?
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Old Apr 8th 2019, 4:41 pm
  #51  
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Default Re: Tax Help (stressed out)

Yeah got it all sorted, going to use the CPA for our taxes. A lot more simpler than doing it ourselves.

Cheers for all your help mate , much appreciated.
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Old Apr 8th 2019, 5:08 pm
  #52  
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Default Re: Tax Help (stressed out)

Err...what did you learn?

Who's the CPA?
They have international experience?
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Old Apr 8th 2019, 5:22 pm
  #53  
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Default Re: Tax Help (stressed out)

That I should not be losing sleep. Trust has a very broad definition for tax purposes and going forward to file both of the 3250 forms. I will most likely amend the prior too.

Yes, they specialize in international tax.
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Old Apr 8th 2019, 5:36 pm
  #54  
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Default Re: Tax Help (stressed out)

So they're suggesting you treat your pension as a Foreign Trust?
Who are they? Did they explain exactly why?
Please provide their rationale if you can.
I think they're wrong.

And Form 3250? Rather you than me..but I suppose that's why you'll be paying the big bucks.

Last edited by Hotscot; Apr 8th 2019 at 6:00 pm.
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Old Apr 8th 2019, 6:17 pm
  #55  
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Default Re: Tax Help (stressed out)

Yeah treat it as a trust, as they mentioned trust was a broad definition. I believe it's to keep myself right.
I guess I am a beneficiary in the trust? I meant 3520 sorry. We are most likely going to file an extension for this year's return which I believe is automatic.



Cook_County I know you are an expert on these matters and I apologise for asking previously on BE and UKY though I would appreciate your input/advice on the situation too.
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Old Apr 8th 2019, 7:10 pm
  #56  
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Default Re: Tax Help (stressed out)

Originally Posted by Hotscot View Post
​​​​​​
And Form 3250? Rather you than me..but I suppose that's why you'll be paying the big bucks.
I am questioning whether I should seek advice from another CPA ....I'm startins to feel the whole pension as a trust is subjective, though surely if the pension is set up as a trust then this is applicable for the 3520?

Are you friends with Cook_County by chance I wonder what his input on all this is as he is pretty knowledgeable about these topics I've heard

Last edited by dee98; Apr 8th 2019 at 9:00 pm.
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Old Apr 8th 2019, 10:15 pm
  #57  
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Default Re: Tax Help (stressed out)

Dee
Bottom line is that you have a regular occupational pension and will report income from it when you take distributions.

Review Post #46 . It's all you need...

Which CPA did you see?
You indicated that they had provided almost immediate feedback...did they give you written information and/or did you take notes?
What's their website?

After all the information you've been given you're going round in circles again.

(I don't think Cook_County ever claimed to be an expert.)

Last edited by Hotscot; Apr 8th 2019 at 10:33 pm.
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Old Apr 8th 2019, 11:18 pm
  #58  
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Default Re: Tax Help (stressed out)

So on schedule B part 3 it would be correct to note no regarding the trust?

It was a CPA that specialized in international tax though I'm starting to question whether this was more on the business end. Worked for RSM for a significant period of time.

I mentioned how in the UK most occupational pension schemes are setup as trusts and mentioned how trust could be a label (as you mentioned) They responded by saying we could do a 3520 form to report it etc. They looked at the contributions I provided from the first tax year and mentioned the treaty, that was about it.

He did not claim to be an expert though I mentioned that theOAP said he has a good understanding of these topics relating to pensions and taxes.
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Old Apr 8th 2019, 11:33 pm
  #59  
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Default Re: Tax Help (stressed out)

And what are the details of this CPA?
Name, location, website. I've politely requested several times out of interest.

If for some reason you don't want to provide that there's no obligation.
But it doesn't sound credible does it?
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Old Apr 8th 2019, 11:36 pm
  #60  
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Default Re: Tax Help (stressed out)

Originally Posted by dee98 View Post
Cook_County I know you are an expert on these matters and I apologise for asking previously on BE and UKY though I would appreciate your input/advice on the situation too.

And what are the details of this CPA?
Name, location, website. I've politely requested several times out of interest.

If for some reason you don't want to provide that there's no obligation.
But it doesn't sound credible does it? Do they actually exist?

Dee...you've been provided with tons of information/advice but you choose to ignore it. That's unfortunate.
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