Zonie

True 99.9% of the time. I'm one of the 0.1%. My RAF service attributable pension (awarded for injury in service) is tax free in the UK and US.

lansbury

More I read of your problems the more I'm glad I pay a CPA $275 to fill mine out for me.

Ray

Apparently these people are very good...

http://www.americantaxhelp.com/faq.html

exvj

Hi Dave - you are the only one I know that reports on line 16 as the schedules talk about 1099r's - turbo tax forum says line 21
Looks like its a random 'try on' thing that has got me and it could happen to anyone

Carolyn can't sleep coz she gets anxious about things - and it's going to spoil our holiday and its going to go on for months at least

I thought the HMRC were pretty incompetent - The ex pats office in Liverpool is the one that I deal with and they assessed me for FULL uk tax on everything even though they admitted my US residency certification the year before and refunded uk tax paid ! They have cancelled it off now after I wrote to the supervisor...

The IRS is sinister and nasty though - I know this is going to get really ugly as they sound like they are on drugs and booze and dont know what they are talking about. They reckon they get rid of schedules to line items and the schedules are not available - they say that my assessment for self employed tax is somehow linked to 10% on my pension coz I took it early before 65 - and they think that the UK 1099R form will clear it up

I really am lost and the fax number they gave me for Kansas doesnt exist and isnt on the IRS site and i waited 1 hour on the phone to them to ask for it and couldnt get through

What a sickner. Alcatraz here I come

exvj

Thanks Ray - all contributions to data bank gratefully accepted

Zonie

I’m wondering if the “Advice of Payment” received each year from the UK pension payer is the equivalent to a US 1099R. Although not as comprehensive, it details a lot of the aspects of the pension that are on the 1099R, gross amount, income tax, originator and your details.

If you call it a UK 1099R equivalent and send it to them the ball is in their court.

Alcatraz is worth a visit by the way.

lansbury

I've gone back and looked at it again on 2007s 1040. I have a very small annuity from Prudential and the figure on line 16 would certainly appear to be wifies Oregon PERs pension and that annuity.

Looked at 2008s 1040 and the Pru annuity seems not be on that line (16). In fact I can't see where it is. Line 21 for 2008 like 2007 shows "net operating loss carryover" so it could be in there but as I don't have a clue how the CPA worked out a loss (something to do with us renting the US house out before we came over) I don't know if it is on 21 or not.

Now you are probably more confused than ever

exvj

Feeling a bit better now but still quite bitter

Got a Chinese lady at the Kansas in-house advocates office and she was helpful

She says basically its about sending all the back up for the figures in the form of P60's and P45's etc - they just want to see that.

I asked what happens if they cant deal with it within the 90 days they have given me and she sort of hinted that they would deal with it within that time. No extensions are granted for any reason, not even the reason that they are too busy to correct their own mistake
so if this is still live after 90 days I must pay $12,800 I dont owe and hope to get it back, or go to court, or have my wife's wage garnished and all the shame that brings

I think therefore I need to crawl all over this every week when I get back from Yorkshire and not let up til they relent

If it comes to it I will opt for the simplified court system and do it myself

I have taken 2 people to court in England - the first one ran into my car which was parked outside my house - the insurance companies wanted to go knock for knock where I lose my no claims. I took out a criminal summons for
1 shilling and he got banned from driving (totting up) and lost his taxi firm.

Second one I sued an airline who dropped me off at Gatwick on a Tenerife - Manchester return ticket. The bus to Manchester would have been 9 hours. I flew and sued em for the ticket. They sent a hot shot lawyer from london to bradford to fight me. I won easily and got all my money

2 nil to me so far so lets try the IRS now ! Shoot for the moon like an American

Peter Newton

It sounds like you have it figured out, but just to clarify: pension income always goes on line 16 whether you have a 1099-R or not.

The IRS is looking for under-reporting of income so they shouldn't bother you if you reported pension income but the IRS doesn't have a 1099-R on file to match it to.

Also, pension income is not subject to self employment tax.

exvj

Thanks for that - a lot of folk on the Turbo tax forums reckon its line 21 but perhaps they have just been lucky not to be audited

I will stick it on line 16 for 2009 with a turbo tax override and put a calculation in as a schedule

I did put it on line 21 for 2008 as well as 2007 so fingers crossed re 2008 - lets hope they dont try that year too

The court procedures look really clear and easy and $60 if I get stuck on the 2007 mess

http://www.ustaxcourt.gov/taxpayer_info_intro.htm


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Redwing

My CPA puts it on line 16.

exvj

So does Lansbury's so that's a thumbs up

Does he put a schedule with it to say what the GBP amount was and the exchange rate or does he say they will ask if they want to know ?
Does he send copy payslips and P60's ?

I think it said somewhere, dont send docs


I will be most interested in your reply as then I will have a clear plan

lansbury

For the one that gets reported I just give the CPA the amount in dollars. Never seen any paperwork for it from the UK

Redwing

It is transferred from the UK to a bank in the US, and then by direct deposit to my bank account here in the US, showing up as dollars. He goes through my monthly statements, totals them up, and puts it on line 16. He efiles and does not send any supporting documents. Hope that helps.

exvj

Thanks Redwing and Lansbury - we must keep in touch..

Transferring it to the US in USD within a couple of weeks or so gives a good exchange rate and I am positive the IRS will accept that rate.

I don't transfer the the pension from the UK so I use an official rate which I get from OANDA corp (I trade forex with them). Its one of the sources that the IRS say they will accept for ex rates.

I am going to be more scrupulous with keeping/obtaining paperwork because the deal is that the IRS can wait 3 years before raising a query (slamming you with a foot thick parcel of legal papers that is). I got a lot of different interest from the UK and I often get screen shots of interest but I think I will make sure i get originals - not easy with internet accounts which often don't issue official statements. Also Isle of Man/Jersey accounts don't seem to issue yeat end certificates. Closed those now as it's too risky with the state of the world. I have an account with the Bank of England (the government) instead. Easy to open as an expat if you have UK passport

I thought 2007 was done and dusted but now I know I am in for a struggle unless they give in within the next 4 weeks or so. I have 90 days (end december) to file court papers and I will do it early December.

It then goes to their attorney's department and they will just give up when they see all my documentation showing its foreign pension and not self employment that needs a 15% tax in addition to normal income tax. I dont think they ever thought it was self employment. Slamming me with a 13k bill was just to wake me up and get the documents sent in to them. They send an uncertified letter first and they say they did that in July. I never received it. If you don't reply within 30 days then you get the nasty pack which you have to sign for. I got that and it was my first intimation that they required further info


When I file 2009 I will put it on line 16 and send in a full pack of copy documents and calculations whether they want it or not. If they don't want it they can sling it

Perhaps my letter was stolen by an employee at the IRS in Kansas City - here is the story >>>

http://www.accountingweb.com/topic/t...-stealing-mail


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