A number of years ago I was employed by a company in Ireland. As an employee I was eligible to purchase shares periodically through the payroll.

I returned to Australia and some time later discovered that the account had been taken over by another portfolio manager and that the company had been purchased by a private equity firm and was no longer traded. The purchaser paid out all shareholders and I was sent a cheque as payment for some of the shares that I owned.

I understand that a portion of this was been withheld by the portfolio manager as there was no information to indicate that I was a foreign national.

I have sent my W-8BEN form to the portfolio manager for the remainder of my money to be returned to me however they have now advised me that the money whitheld has been sent to the IRS.

Is there any way that I can claim this money back from the IRS? What forms?

Many thanks

Did you work in the U.S. If yes, did you file the U.S. tax return.
Why would a Ireland company send your payment to IRS?

It is implied that, though you worked for a company in Ireland, you worked and lived in the United States.

If the transaction happened while you were living and working in Australia, then NO U.S. taxes were due.

You will need to file Form 1040NR and Form 8833 to cite the appropriate provisions in U.S. tax law to recover the taxes withheld when the shares were sold.

If you need filing that return, email me at [email protected].

Thanks very much for responding! Much appreciated.

Although I am Australian, I lived and worked in Ireland for the Irish site of an American company listed on NASDAQ. I never paid U.S. taxes as I am neither a U.S. Citizen nor have ever been to the U.S.

The company was bought in August 2006 and the share payout transaction occurred after I had returned to Australia and I have only now attempted to claim the money by submitting the W8BEN. I don't know when the money was paid to the IRS.

Is there a time limit to claim this money? Will the IRS know the amount that was withheld or will I need to get this information from the portfolio trader?

Thanks for this!

Chris

You need to get information from the portfolio trader.
Since you are not a U.S. citizen or resident and did not work in U.S. any wages/salary paid by U.S. firm or any capital gains from shares and stocks in U.S. is not taxable in the U.S.
So why would portfolio trader send any withholding tax to IRS?

Chris:

You said the company was purchased in August 2006. Did you receive the payout (with the taxes withheld and sent to the IRS) in 2006 or 2007?

If it was 2006, then, unfortunately, it is too late to recover the withheld taxes. There is a three-year statue of limitation for claiming refunds, so, for 2006, you would have had to file your 2006 Form 1040NR by 15 April 2010.

Now, if you received the payment in 2007, you STILL have time to claim the refund.

BOTTOM LINE: When did you receive the payment??