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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10453
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am a non resident alien,i have a transacted on shares through

Customer Question

I am a non resident alien,i have a transacted on shares through a broker in USA.I have a notice from the IRS detailing capital gains tax demand.I want to authenticate if it is a geniune letter from the IRS and if content there in is proper.
Submitted: 3 years ago.
Category: Tax
Expert:  Lane replied 3 years ago.

Lane :

Hi,

Lane :

Yes, see this from IRS:

Lane :

Taxation of Non-Resident Aliens:

Who Must File

If you are any of the following, you must file a return:

  • child last-child">A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year. You must file even if:
    • Your income did not come from a trade or business conducted in the United States,
    • You have no income from U.S. sources, or
    • Your income is exempt from income tax.
Lane :

However, See this, NOTE: If your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident broker or other agent, you are NOT engaged in a trade or business in the United States.

JACUSTOMER-rukwncjx- :

if i have earnings from a transaction,sale of shares,for the tax due,would the IRS demand i pay first or should they not deduct from what is due to me

JACUSTOMER-rukwncjx- :

direct and the broker can send the net due?

Lane :

Sometimes, depending on whether a 1099-B was sent to IRS from your broker, they will send out a demand for the amount due based simply on the gain that was reported by your broker to them ... (forcing you to file a return to ahow that the tax is or is no due, based on your circumstance)

Lane :

sorry for the typo (to "show" that the tax...)

Lane :

BUT If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence.

JACUSTOMER-rukwncjx- :

it was addressed to me but recieved by the broker,i dont believe them? the irs even say that i should not contact them but through the broker?? the whole deal may be a scam?

Lane :

NO that is most likely a scam

Lane :

IRS would never tell you to pay dollars to another entity

JACUSTOMER-rukwncjx- :

ok,you say i should call the number,and then maybe i can report these scamers,they are operating live now,by the way i am in africa,nairobi

Lane :

OR to contact them THROUGH someone else, So sorry, but this sounds VERY suspect

Lane :

Yes, pleas do... you will be helping others

JACUSTOMER-rukwncjx- :

thank you,i will,much appriciated.

Lane :

You are welcome ... good intuition

Lane :

If this has helped, I would appreciate a rating of 3(ok) or better. (That's the only way I'm paid) ... However, if you need more on this, please come back here so you won't be charged for another question.