US Shares tax problem (W8BEN)

balsingh

Hi,

This will probably be a long one but I hope someone can help.

I used to work for a US company called EDS (albeit in one of their UK offices) and enrolled in one of their stock purchase plans. Even though the shares were in dollars, I didnt see this as an issue. Even after I left the company, I held onto the shares in the hope the price would rise quite high. I was told that if I ever want to sell the shares that I must submit a W8BEN at that point to avoid being taxed on them. As I had no reason to sell at that point, I didnt bother completing this form.

Recently, HP took over EDS and the shares were automatically sold without any notice at all. The first I heard was when cheque arrived in the post. The amount was a lot lower than expected and after a call to the states, I was told that I was taxed at 28% as I hadn't submitted a W8BEN form. I explained that had no intention of selling so didnt fill one in and had I been given advance notice that the shares were being sold, I would have submitted one. The guy basically said EDS shares no longer exist and he coudlnt do a thing. He said my only option was to submit a tax return and claim the tax back.

My query is how do I get the tax back? What form do I need to fill? Is it anythign to do with the HMRC or is something specifically that I need to deal with the IRS in the states? Please help .... they owe me almost $2000 and I'm worried I've lost it :mad: All I have been told is that in the near future, they will send me a tax statement.

thanks in advance ... any pointers will be appreciated.

Zeitgeist

Hi, you have to contact the IRS for a 1040-NR form to refund the excess funds withheld as a non-US citizen.

Once you have completed this form and posted it back to the IRS, they will reply and then ask you to provide a SSN (social security number) which you can apply for the purposes of getting a refund via the form they send you. To prove that you are non-US citizen you will also need to send your passport or a US-notarised version of it from a US embassy, as well as completing this second form and sending it back. Think this second form is called W-7.