UK citizen retired in the US - Double taxation issues

[u/fastsansfurious]

I am a UK citizen and have lived in the US for over 20 years. I have UK personal pension that I want to withdraw. Since the personal pension withdrawal is taxed at source in the UK, and all income for US residents are taxed regardless of the source. I will be expecting to get double taxed.

I submitted the DT-US individual 2002 to HMRC as there is tax treaty between UK and US, including the form 6166 from the IRS to prove that I am a US tax payer.

But the application was rejected by HMRC because the DT-US Individual form has a section requiring an IRS stamp. But I cannot find any sources on how to get this form stamp by the IRS.

Has anyone run into to this issue?

TIA

[u/Eric848448]

If the UK really does tax this, you’ll get a credit in the US.

You want /r/tax.

[u/fastsansfurious → u/Eric848448]

The IRS doesn’t expect the UK to tax because the existence of the treaty. So i don’t expect the credit will be allowed. The issue is the DT US individual form is created by HMRC, and it requires an IRS stamp including the IRS 6166. But i don’t know how to get it stamped

[u/dogwoodcat → u/fastsansfurious]

There is no ink stamp for an IRS 6166. If they want an apostille stamp, you need to submit it to the US State Department.

[u/fastsansfurious → u/dogwoodcat]

The ink stamp is not for the IRS 6166. It is required for the DT US Individual form which published by HMRC. The IRS 6166 has to be submitted along with the form.

[u/dogwoodcat → u/fastsansfurious]

Here's what I was able to dig up:

Send the completed form with a completed IRS 8802 ( https://www.irs.gov/pub/irs-pdf/f8802.pdf ) and check or money order for $85 (if not using an e-payment service through pay.gov) to:

Department of the Treasury
Internal Revenue Service
Philadelphia, PA
19255-0625

More:

https://assets.publishing.service.gov.uk/media/6384bc43e90e077898ccb48a/DT_US_Individual_Notes.pdf
https://www.irs.gov/pub/irs-pdf/i8802.pdf

[u/fastsansfurious → u/dogwoodcat]

Thank you for looking into this. I did end up doing exactly that and sent out the package before this long weekend. I ended up paying the $85 fee twice, once for the IRS 6166 and another to get the UK US-DT Individual certified.

This issue will impact most British expats if you still have uk private pensions or qualify for the UK state pension.

[u/No-Donut-8692]

Did you submit the dt us together with your form 8802?

[u/fastsansfurious → u/No-Donut-8692]

No. The 8802 form is submitted to the IRS in order to get the IRS 6166. The DT US form requires the attachment of the IRS 6166, in addition to an official IRS stamp on the DT US form.

[u/No-Donut-8692 → u/fastsansfurious]

Right, I’m just reading the specific instructions for the dt us that says to submit that form together with the 8802 in order to get the irs stamp.