taxation upon leaving

[InnVic]

Trying to get all our ducks in a row for leaving the US. Its likely to be late Jan - early Feb so we will have operated our business for approx 4-5 weeks into the new tax year (2010).
Does anyone know if we have to get a certificate of compliance (file form 1040c http://www.irs.gov/pub/irs-dft/f1040c--dft.pdf)

[Ed Tha Brit]

Trying to get all our ducks in a row for leaving the US. Its likely to be late Jan - early Feb so we will have operated our business for approx 4-5 weeks into the new tax year (2010).
Does anyone know if we have to get a certificate of compliance (file form 1040c http://www.irs.gov/pub/irs-dft/f1040c--dft.pdf)

Hello Innvic,

Did you get an answer to this topic?

This is not a scam or someone trying to sell you a phone:fit:

Have a nice Day

Ed Tha Brit

[InnVic]

No not yet.....
We've every intention of paying tax due - our 2009 return is at accountants now - we asked her about this but just got a blank expression - but then in Vermont they are not familiar with anything out of the ordinary. I just figured even if we don't have cerification of compliance - who's gonna stop you at the airport - they don't seem worried about folk leaving - its those coming in that they give a hard time.

[Ed Tha Brit]

OK,

If Peter or Carl don't answer this one, we are going to our accountants on Friday and I will ask the question, you never know??

Have a nice Day

Ed Tha Brit

[Carl]

Sorry, I dont know the answer to this one.

Carl

[JulieC]

No one stops you at the airport! We sold up in Dec 2006 and did our 2006 tax return about two months after we left from Portugal. As far as I am aware our accountant did an ordinary return but marked it final return.

[InnVic]

No one stops you at the airport! We sold up in Dec 2006 and did our 2006 tax return about two months after we left from Portugal. As far as I am aware our accountant did an ordinary return but marked it final return.

Bingo - thats whats I figured :-) We still have a US bank account and plan to leave funds in there to mop up the odds and sods - we shoudl actually get a tax REFUND this year as we did less business than in 2008 and paid quarterly on account so have some money due back...maybe we should get a certificate from them!

[peter gold]

On your sale if real estate 10% FIRPTA witholding tax will be made

[JulieC]

Not if you are a tax resident who fulfills the substantial presence test, Peter.This has been discussed before. I have sold three homes here without withholding. If you sell a holiday home here but live abroad it is different. You are confusing residency from an immigration standpoint and from a taxation standpoint. We are resident aliens for taxation purposes and taxed in exactly the same way as an American, non resident aliens only for immigration purposes.

[peter gold]

on reflection u r right Julie

[Carl]

Yes Julie, Thats right, happens alot round here due to the vacation homes.

Carl.