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Old 05.03.2018, 18:20
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taxes to IRS and W-8BEN

Hoping to find US tax experts here ...

OK, I did not file W-8BEN in time with my US online broker, and they reported my capital gains to IRS (1099-B). Now IRS insisting quite heavily on me paying US income tax on the stocks I sold. Is there any way I can get out of this? Can W8-BEN be used retroactively?
I'm NOT US citizen or Green card holder.
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Old 05.03.2018, 18:38
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Re: taxes to IRS and W-8BEN

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Hoping to find US tax experts here ...

OK, I did not file W-8BEN in time with my US online broker, and they reported my capital gains to IRS (1099-B). Now IRS insisting quite heavily on me paying US income tax on the stocks I sold. Is there any way I can get out of this? Can W8-BEN be used retroactively?
I'm NOT US citizen or Green card holder.
Why not ask the Broker? I am amazed they allowed you to trade without filling in a W8BEN or W9 form.
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Old 07.03.2018, 19:18
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Re: taxes to IRS and W-8BEN

The US tax system is based on citizenship mainly or connection to the US. If you are not a US citizen / green card holder and have no connection to the US (I am assuming that you live in Swiss)...how is the IRS even getting a hold of you. The 1099 reporting is for US citizens or residents. Sorry, I am a US tax person but I think your question needs more facts.
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Old 07.03.2018, 19:26
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Re: taxes to IRS and W-8BEN

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The US tax system is based on citizenship mainly or connection to the US. If you are not a US citizen / green card holder and have no connection to the US (I am assuming that you live in Swiss)...how is the IRS even getting a hold of you. The 1099 reporting is for US citizens or residents. Sorry, I am a US tax person but I think your question needs more facts.
Because, as like tax regimes of other countries, the IRS assumes until otherwise proven that you are a US tax person. It is the simplest way to enforce uniform taxation and plug the holes.
Btw.: The connection to the US is through the US online broker.
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Old 07.03.2018, 19:32
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Re: taxes to IRS and W-8BEN

Well this is a new low. I would assume that when you register with the online broker to establish an account you identify yourself as a foreign person. I guess that is W-8BEN. I would suggest to sort that out asap. The IRS has been very aggressive during the last year or so. I have seen a tremendous increase in IRS Notices to my clients.
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Old 07.03.2018, 19:44
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Re: taxes to IRS and W-8BEN

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Well this is a new low. I would assume that when you register with the online broker to establish an account you identify yourself as a foreign person. I guess that is W-8BEN. I would suggest to sort that out asap. The IRS has been very aggressive during the last year or so. I have seen a tremendous increase in IRS Notices to my clients.
Yes thats what the W-8BEN, or as it title says "Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting" is for. And it is not a new or even a recent thing that the IRS collects tax if one does not file this very simple form.
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