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Technical topics regarding tax preparation.
#1
HowardS  
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Southern Pines, NC
So, a good friend of mine lost his battle with cancer this week.
His widow is a UK citizen, long term green card holder. She is going to return to the UK permanently sometime in 2016.
I've never met her, he prepared his own taxes and I don't expect her to ask me for tax advice which I would freely give if she did ask. This is my understanding of what she will need to do:
1) Go to the local IRS office and they will help her file a 1040-C to get a sailing permit.
2) Send a W8BEN to his (now her) traditional IRA trustee and attempt to waive the 30% withholding by citing the US/UK tax treaty article 17.
3) Send a W8BEN to his municipal pension administrator and attempt to waive the 30% withholding by citing the US/UK tax treaty article 19.
4) Change of address and bank info with SS office.
5) Find a tax pro in the UK to help file the 2016 1040 along with forms 8833 and 8854.
6) Turn in her green card or just let it lapse.

Best case, the 2016 return will be her final US return. Worse case, there is withholding and she has to file 1040NR's for the rest of her life. I'm almost certain there will be no exit tax exposure.

Any other good words of wisdom? Thanks.
I suffer from depreciation.
 

#2
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21-Apr-2014 11:24am
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A coordinated approach would be worthwhile, I think, ie, suggest she finds someone who can consider both UK and US taxation. She may have filing responsibilities in the UK for the 2016/17 tax year and it would be a shame if they got buggered up by someone who does not understand UK taxation (or has been away from it too long to be any use).
 

#3
Nilodop  
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For example, use someone who says "buggered up".
 

#4
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Nilodop, parenthetically, I do not meet my own criteria.
 

#5
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Stockton, CA
He probably is not allowed to say this himself here, but send her to Guya. The man knows both his US and UK tax law inside out and fits the bill exactly. I can tell he knows what he is doing. The areas you describe are best handled by an expert such as he.
 

#6
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He probably is not allowed to say this himself here, but send her to Guya.


Agreed. Guya is the one you want for this case.
 

#7
chris  
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I just want to point out the worry about "probably not allowed to say this himself here" - not true at all. To the extent the members here wish to network with one another on opportunities to collaborate or share leads - go right ahead, and the private message system can be used if you don't want to make it public.
Site admin and software developer for TaxProTalk.com and https://TheSiteFactory.com
 

#8
HowardS  
Posts:
1122
Joined:
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Location:
Southern Pines, NC
Guya has been my foreign go-to man since Taxalmanac days and I hope he either weighs in or PM's me his contact info that I can pass on. I also miss Lizzit.

I would just like to make this lady's journey home easier and am trying to get the process down in my own mind...she isn't and will never be a paying client of mine.
I suffer from depreciation.
 

#9
Nilodop  
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11459
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Location:
Pennsylvania
Contact info for lizzit and guys is available on TPT. Click on "Members".
 


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