FATCA and Australia – Part 2 of 2
See also FATCA and Australia – Part 1 of 2
Let’s Fix the Australia/US Tax Treaty! The Australia/US tax treaty needs urgent revision to prevent double taxation. Get involved at www.FixTheTaxTreaty.org
Posts on The Isaac Brock Society website concerning FATCA and Australia
For articles on other websites, see Media and Blog Articles
For general discussion of FATCA, see FATCA Discussion Thread
For links to some websites and contact info (government, organisations, tax information), see Australia Information Links
25: John Richardson and Karen Alpert Session in Brisbane Australia Oct 25, 2018
August 2018
01: U.S., U.K., Canada, Australia and Netherlands form international tax enforcement group
January 2018
July 2017
March 2017
13: What Lessons Can Be Learned from the Sad Stories of “IRS Compliant” Australians Shaun and Mary?
November 2016
30: “Solving U.S. Citizenship Problems” – Online January 9, 2017 (Australia)
August 2016
25: Let’s Fix the Australia/US Tax Treaty!
May 2016
15: Australia: Dealing with Superannuation
February 2016
19: #Australia funds America’s #FATCA #Ethnic Identification System
September 2012
27: Last Day to make a FATCA submission to the Australian Govt
August 2012
28: Australian Government wants YOU to tell them what to do about FATCA
July 2012
20: Australian Financial Services Council lobbies Washington for FATCA exemption
Hello everyone,
Much love and massive thank you’s for all your support and answers.
I’m sorry i’ve not replied sooner. I’ve literally been stressed to even read the responses in case there was more “bad news”.
To answer your questions:
– i would definitely be seen as a covered expatriate. I believe the 7 year timeframe is not applicable for a covered expatriate, it never expires.
– stupidly i did not make a copy of what i filled in…. I think i put 000000 for SSN. And i think i said i had complied with previous 5 year tax returned but i had not actually filled in any tax returns.
– i never want to become American again or live/work in America
– I did have a US passport and i did travel frequently, including visiting the US. When i arrived i arrived using my US passport. So hence they know i exist.
What about my US Shares? They are worth quite a bit. When i sell them, will i be taxed or can i get the $ from them? I’ve not sold them in fear of triggering attention on me.
Thanks @Portland for the tips about not contact the IRS and watching out for that Canadian firm.
It sounds like *no-one* has been contact by the IRS after renouncing. Could this be correct?
Thank you
Gerry
Sorry one more clarification:
Re: 8854 form, I think i answered “yes” that i did NOT have a filing obligation. Even though i technically was meant to file and had an obligation. So i guess this may have been the wrong thing to have done….
One very important point, the IRS may have been trying to get hold of me. After i renounced I moved. They dont have my contact details. The only way i could find out if they have fines or orders for me would be to contact the IRS or contact a tax agent to contact the IRS. Should i do this?
I could easily imagine i do have fines/orders but am not aware of them…
Thank you again
Gerry
@Gerry
I am not sure what you told them on the 8854 of your income or net worth for them to make an assessment.
There isn’t a tax collection agreement between Australia and the US for people living in Australia and who also hold an Australian passport, so even if they came after you with an assessment , it couldn’t be collected unless you paid them voluntarily.
Any financial interests you hold in the US could be at risk if they conclude you owe them an exit tax. You might consider selling the shares if you fear they may have levied an exit tax. It would have been better to avoid the post renunciation tax filing, but it has been 7 years and you have heard nothing.
I would do nothing to contact the IRS.
Sell the shares, get the money out, stop worrying about this. Before selling I would ask the broker whether there would be any mandatory witholding of capital gains tax. Identify yourself to the broker as non-resident alien, not as a former US citizen who may or may not be a covered expatriate on account of having renounced and incorrectly dealt with tax exit.
The IRS doesn’t care about you and almost certainly has not attempted to contact you. What you said on your 8854 is consistent with someone renouncing who had a very low income (below the filing threshold). That is not really an issue.
How you get your assets out of the US is the issue. If you sell them as an NRA with no SSN then I doubt the IRS is going to suddenly wake up to the fact that 7 years in the past someone with the same name renounced and filed a dodgy 8854 than nevertheless looked legit.
We try not to be critical of people here, but don’t you think that renouncing and doing an untrue 8854 was maybe not a great idea given that you own a bunch of US stock?
@Heidi
It’s my understanding that there isn’t an assistance in collection agreement with Australia, period. It would not matter whether someone had Australian citizenship or not, the national authorities would not assist the IRS with collection against a resident. Unless something has changed, it’s only Canada, Denmark, France, Netherlands and Sweden where non-citizen US persons need be concerned.
@Ron
Re tax collection agreements.
You are correct as I understand it. I just wanted to hammer home he is an Australian living and paying tax in Australia with no collection agreements with the US.
Re US shares. Depends how and where they are held. I have US shares in my Canadian brokerage account. If I sold them, the sale would be reported to the Canadian tax people but certainly not to the IRS. No withholding . I have no idea how it works in Australia.
Thank you @all for your helpful reassurances.
I will do my to move forward without thinking about this anymore but as you all know – it’s the fear that one day it will come back to haunt me.
Good luck to you all,
Gerry
@Gerry
The renunciation will absolutely not come back to haunt you, never fear. The only concern you have is your US shares, but only if they are held on a US exchange or bought through a US broker, I believe.
Pls RT/Like on Twitter: https://twitter.com/JCDoubleTaxed/status/1447792032240467969?s=20
#Australia @Treasury_AU
asking for comment on the Australia-U.S. Tax Treaty.
@FixTheTaxTreaty ! @MichaelSukkarMP
END Double Taxation of #Superannuation #SMSF
@ExpatriationLaw @aaro @SEATNow_org @AmExpatFinance
@Carmelan @DemsAbroad #FATCA @SolomonYue
https://fixthetaxtreaty.org/2021/10/08/treasury-tax-treaty-consultation/
Look under Announcements on the FaceBook Group FixTheTaxTreaty
With the Australian govt preparing to overhaul the country’s int’l tax treaty network, Let’s Fix the Australia/US Tax Treaty!–a Brisbane-based advocacy group headed up by Karen Alpert–is urging US expats in Oz to submit comments, by the Oct. 31 deadline… https://bit.ly/2Zgxt1D
Public submissions are now online in regards to review of Australia’s Tax Treaty Network. Of the 22 submissions 63% were in regards to the Australia-U.S. Tax Treaty and where it needs fixing.
Fingers crossed something comes out of this.
My submission is under ANON (2). I have a number of relatively short term suggestions of what the Australian government may do in regards to remedy of where the Treaty may guarantee double taxation.
Other sources: Facebook Groups: FixTheTaxTreaty & website under this url.
https://treasury.gov.au/consultation/c2021-208427?fbclid=IwAR1FoSyU6cbJtnVGSCHQlOfN53jm3tZ3lH2MGsw1rqk9ASh5rCdTqOBFMY8