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bigduckontax
bigduckontax, Accountant
Category: Tax
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My friend who lives in England receives a cheque from the

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Hi, my friend who lives in England receives a cheque from the Cheroky nation every 6 months. Tax is taken off the cheque in America. He wants to get the American tax back. How can he do this please.
JA: Have you talked to a tax professional about this?
Customer: I spoke to a friend who is a tax expert this weekend and he advised he speak to the IRS. These cheques go back many years.
JA: Which tax year is this for?
Customer: Well he has been getting these cheques for many years.
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: No thank you

Under the Double Taxation Treaty between the UK and the USA ay tax deducted by the States is allowable as a tax credit against his UK liability on the same income stream. This foreign income should be declared on self assessment. Failure to declare this income could result in a complete mares nest of unpaid liabilities and penalties.

Customer: replied 15 days ago.
Should he contact the IRS directly about this situation?

No need.

Customer: replied 15 days ago.
Should I call the IRS directly?

Why, the IRS are unlikely to agree a tax free transfer.

Customer: replied 15 days ago.
Why would that be? as he doesn't pay tax or earn any money at all in the UK, why can't he claim the Americen tax back?

He could try, but I do not give him much chance of success.

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