Sale of Marriott timeshare.

[KENWEBSTER]

I have recently sold my Marriott timeshare at Barony Beach back to Marriott.I had to pay income tax to the US Treasury Dept.As a UK resident I am having the greatest difficulty at obtaining a refund of same.I have sent them a completed FormW-7 and copy passports etc.They now say I need an ITIN for which I should send them a W-7 form which I have already sent them.I have tried to telephone them but only get a recorded message.I have left a message asking them to ring me,but they seem reluctant to ring the UK.
Any advise would be appreciated.

 

[SmithOp]

Which box did you tick at the top of the W-7, a through h? Per the note, some of them require the tax return to be submitted with the form.

What did you get from Marriott, a 10-99 that showed Fed Tax withheld?

IRS is not very helpful when they owe you money, as you discovered, but if you owe them its another story.

Perhaps there is a service in UK for filing foreign tax returns, perhaps they can assist, but it might cost more than what they withheld, good luck.


Sent from my iPad Mini 4 using Tapatalk

 

[Beaglemom3]

Ken,

Not sure if this is helpful, but there might be an informative tidbit here in an old thread :


http://www.tugbbs.com/forums/showthread.php?t=11801



-

 

[KENWEBSTER]

Sale of Marriott timeshare

Thanks for the replies.
I was advised to mark a as the reason I was submitting the W-7 form.
I received a settlement statement from the US Department of Housing and Urban Development.
Both Marriott and myself used an attorney in Hilton Head,but they are not interested in dealing with the US tax authorities.
Ken

 

[Seaport104]

I have recently sold my Marriott timeshare at Barony Beach back to Marriott.I had to pay income tax to the US Treasury Dept.As a UK resident I am having the greatest difficulty at obtaining a refund of same.I have sent them a completed FormW-7 and copy passports etc.They now say I need an ITIN for which I should send them a W-7 form which I have already sent them.I have tried to telephone them but only get a recorded message.I have left a message asking them to ring me,but they seem reluctant to ring the UK.
Any advise would be appreciated.

Does the 1099-S issued by Marriott include an identification number?

 

[KENWEBSTER]

I am confused by all the forms received.I cannot find a 1099-S issued by Marriott.I have a Form 8288 U.S.Withholding Tax Return,and a Settlement Statement from the US Department of Housing and Urban Development.
Thanks for the reply.

 

[Seaport104]

I am confused by all the forms received.I cannot find a 1099-S issued by Marriott.I have a Form 8288 U.S.Withholding Tax Return,and a Settlement Statement from the US Department of Housing and Urban Development.
Thanks for the reply.

On the form, is there an "Identifying number" listed on that line?

 

[KENWEBSTER]

On the Form 8288 there is a withholding agents Federal identification number 13-3436547 which I assume is the number of the attorney dealing with the sale,and in the space for the identification number of foreign person subject to withholding,there is the comment 'applied for'

 

[Seaport104]

On the Form 8288 there is a withholding agents Federal identification number 13-3436547 which I assume is the number of the attorney dealing with the sale,and in the space for the identification number of foreign person subject to withholding,there is the comment 'applied for'

That answers it. Unfortunately, it will be quite a process to get this refund. What should have been done is Form W-7 should have been attached the 8288 filed by the withholding agent. Assuming this was not done, in order to get the refund of the 10% withheld (assuming there is no gain on the sale of your timeshare), here are the steps you need to take-

1) Prepare a Form 1040NR Get a US taxpayer ID number (ITIN). This is issued to taxpayers who do not qualify for a US social security number. To obtain one, you need to submit a competed Form W-7 with the required documentation. The issue is the required documentation requires you to either send the originals (which I am assuming no one wants to do) or you need to go the Embassy to have them certify the validity of the copies.

2) Assuming you are able to provide all the documentation the IRS requires, you will need to file a Form 1040NR to file for the refund of the 10% withheld (assuming $0 gain).

The IRS might ask for your 1040NR as part of them issuing the ITIN but do NOT file a 1040NR US return until they issue you an ITIN.

3) Lastly, since the 8288 that proves they withheld 10% says "Applied For" under the ID number, you will need to have the IRS recognize that withholding is yours and have the amount transferred to your Taxpayer ID account (which they cannot do until you get your ITIN issued).

So the question is, how much is the 10% withheld because if it's a nominal amount, it's just not worth the hassle.

 

[Seaport104]

I have recently sold my Marriott timeshare at Barony Beach back to Marriott.I had to pay income tax to the US Treasury Dept.As a UK resident I am having the greatest difficulty at obtaining a refund of same.I have sent them a completed FormW-7 and copy passports etc.They now say I need an ITIN for which I should send them a W-7 form which I have already sent them.I have tried to telephone them but only get a recorded message.I have left a message asking them to ring me,but they seem reluctant to ring the UK.
Any advise would be appreciated.

The IRS is highly inefficient and bureaucratic. A call back from the IRS when you don't owe them money ?? :hysterical:

HMRC is a cakewalk compared to the IRS:ignore:

 

[dioxide45]

Depending on how much you sold it back for, it may not be worth the hassle of chasing the refund. If that is the case, our government thanks you

 

[KENWEBSTER]

Sale of Marriott timeshare

The tax withheld amounts to $330.
I wish Marriott had disclosed this information when we purchased this timeshare in1999.
We have no regrets,we have had some great holidays and exchanges,most in the US.
We have decided with our advancing years that we no longer want the hassle of airports,long flights and homeland security.
We will use our Marriott Marbella and stay in Europe.
Many thanks for all your comments,and TUG is still the best site for information.

 

[Seaport104]

The tax withheld amounts to $330.
I wish Marriott had disclosed this information when we purchased this timeshare in1999.
We have no regrets,we have had some great holidays and exchanges,most in the US.
We have decided with our advancing years that we no longer want the hassle of airports,long flights and homeland security.
We will use our Marriott Marbella and stay in Europe.
Many thanks for all your comments,and TUG is still the best site for information.

By the time you get that refund the exchange rate will be 2 to 1 again:rofl:, not to mention the aggravation and hassle. U

Uncle Sam thanks you

 

[BocaBoy]

The tax withheld amounts to $330.
I wish Marriott had disclosed this information when we purchased this timeshare in1999.

This foreign withholding rule is new since you bought your timeshare in 1999 so Marriott could not have advised you of its existence then. (I am not saying they would have advised you if it did exist....I doubt that they would have.)

 

[dioxide45]

The thing is, Marriott knows what the timeshare was bought for and sold for, could they not have determined the gain/loss and filed the 1099 based on that. Thus no gain, no 1099? Guess I don't know enough about the rule.