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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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hello my name is XXXXX XXXXX im from switzerland and worked

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hello
my name is XXXXX XXXXX i'm from switzerland and worked for EDS 7 years in switzerland. i'm a swiss citizen, always lived in switzerland and always paid taxes here.

during the years working for eds i bought shares from EDS. in 2008 EDS was bought by HP and the shares were sold. for the sold shares i got a check in september 2008. now: so far so good.

but: the payment for the shares was shortened by 28%. i got a form 1099-B from the bank with all the details of the transaction. i called the bank (MELLON INVESTORS). they explained to me that all the data of the transaction was sent to the IRS. they said, they had to withold the 28% because i didn't fill out the form W-8BEN often enough (every 3 years)!

now i searched the web for any help how to get back the $9854.89 . i think i should now fill out a "tax declaration" 1040NR.

my questions:

1. my idea is that i should get back this money from IRS (since i paid a all income taxes for my earned money already in here)
Submitted: 5 years ago.
Category: Tax
Expert:  Ed Johnson replied 5 years ago.

DearCustomer

 

Non-residents do not pay capital against taxes on sell of shares unless those shares were were purchased or acquired as a result of your employment effectively connected with the U.S. or a U.S. company.

 

You do need to file a form 1040NR.

 

The tax treaties between the two countries requires that U.S. sourced income is taxed first in the U.S. and then taxed in your country, where your country gives you credit for taxes paid to the U.S.

 

However the clauses in the tax treaty provide for a different approach at the discretion of the two taxing authorities. What this means is, you need to file the 1040NR and pay attention to the last page where you claim tax benefits.

 

Provide a cover letter explaining the circumstances of how you paid taxes to your home country on this income.

 

The IRS can accept those terms; or they may insist on you paying the U.S. TAX and reimburse you any over payment on that basis. If they reimburse based on a tax obligation to the U.S. without regard to taxes paid to your home country first, then you will be forced to seek reimbursement from your home country for the resultant overpayment of taxes. (double tax).

 

 

Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Ed Johnson and 6 other Tax Specialists are ready to help you
Customer: replied 5 years ago.
hello mr. johnson

thank you for your answer. unfortunately my english is not as good to completely understand. especially all the tax-technical terms ...

i was calling the "MELLON INVESTORS" bank. the lady said, they only passed my money to the IRS because the form W-8BEN was missing.
and now the money maybe is withheld by the IRS? no way to send an W-8BEN equivalent to the IRS now?

the swiss tax people so far all told me this whole story isn't of their concern. it's a nightmare to me.

so how should a proceed?
1. you help me or give me a reliable partner for doing the neede froms, declaration and so on
2. i try to fill out the 1040NR and (maybe) loose all my money because i will be lost in understanding and replying
3. ???

best regards
andreas weber

is it possible that you can assist me in doing the declaration or give me an advice to find somebody? it is a lot of money to me that i fear to loose now? i paid already nearly 10000$ taxes in switzerland for this money (hard to calculate actually)!

when i looked at the 1040NR it sounded like chinese to me!
Expert:  Ed Johnson replied 5 years ago.

Dear VZ,

 

You ask: is there no way to send a W-8BEN or equivalent to the IRS now?

 

My response: Yes, you can send one now, but it will not do anything for you and is redundent. The reason it is redundant is that the 1040-NR has a section for claiming tax treaty benefits.

 

The W-8BEN is a document that allows you to cliam tax treaty benefits befor withholding.

 

When you file the form 1040-NR you will claim tax treaty benefits on the last page, and if you are not nobligated for any tax according to the terms, then the IRS will refund it all. If you are entitled to a beneficial rate, then you will only have to pay the beneficial rate (genrally 15%), and you would be refunded the balance.

 

I understand, that the 1040NR is a complicated document.

 

 

YOU ASK: CAn I help or make a referrel tgo reliable partners.

 

My answer: I am unable by the rules on this site to contact you offsite or to have a client relationship with you. However, I can refer you to a couple of people with whom I am familiar with thier work.

 

1. This company is set up for U.S. expats, but can do the Non-resident return. http://www.visiontaxservice.net/

 

2. This is the Women's Venture Fund who has tax consultants who are competent at completing the 1040NR. motero@wvf-ny.org.

 

Of course the big boys, that is PWC for example can do it also, but they are expensive. The two referrels I made will do the return for a modest price.

 

 

Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Ed Johnson and 6 other Tax Specialists are ready to help you

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