r2i forum

I used to be a GC holder and surrendered it a few years ago after returning to India. I filed all my US tax returns while I was a GC. The IRS has been pestering me to pay some back taxes even though I wrote to them many times explaining the reasons why I don't owe them anything. They only deal with postal mail and their notices are just computer generated with hardly any explanation from a human being. Today I received their "Notice of Intent to Levy". I do not have any accounts in the US anymore and absolutely no links to their financial system. My question is: can the IRS find out my Indian bank accounts and garnish whatever amount and penalties as they please? FYI, I never gave them any of my Indian bank account details. Has anyone been in this situation?

You should call them and explain your situation. The phone number should be on the notice that you received.

Thanks essjay; I had called them a few months back; but those people just parroted scripted answers and didn't really listen to what I had to say. I guess they can afford to be arrogant with all the powers they have.

swissmaestro;470185I used to be a GC holder and surrendered it a few years ago after returning to India. I filed all my US tax returns while I was a GC. The IRS has been pestering me to pay some back taxes even though I wrote to them many times explaining the reasons why I don't owe them anything. They only deal with postal mail and their notices are just computer generated with hardly any explanation from a human being. Today I received their "Notice of Intent to Levy". I do not have any accounts in the US anymore and absolutely no links to their financial system. My question is: can the IRS find out my Indian bank accounts and garnish whatever amount and penalties as they please? FYI, I never gave them any of my Indian bank account details. Has anyone been in this situation?

They can't directly garnish or even access your accounts abroad. IRS has no powers in India.
They could request assistance from the Indian govt and can try to litigate the tax claim in India per tax treaty but that is only likely for major amounts. Keep in mind that if you intend to default ( in their eyes), then you are subject to possible detention if you ever return to any US territory and that would include even changing a plane at a US airport or territory. Of course not all US agencies are that organized and this only applies to high-profile people unless one gets unlucky.

You should seek advice from a tax attorney/ CA in India.

swissmaestro;470185I used to be a GC holder and surrendered it a few years ago after returning to India. I filed all my US tax returns while I was a GC. The IRS has been pestering me to pay some back taxes even though I wrote to them many times explaining the reasons why I don't owe them anything. They only deal with postal mail and their notices are just computer generated with hardly any explanation from a human being. Today I received their "Notice of Intent to Levy". I do not have any accounts in the US anymore and absolutely no links to their financial system. My question is: can the IRS find out my Indian bank accounts and garnish whatever amount and penalties as they please? FYI, I never gave them any of my Indian bank account details. Has anyone been in this situation?

Has IRS amended your return for a specific year?

You say you surrendered the GC, so I presume there is no issue of taxation post the surrender, else copy of the surrender letter should suffice.

Quite obviously, they believe you owe some taxes and you believe you do not - so this can be resolved by citing the appropriate tax code relevant to the situation.

I had once received a bill for a few thousands extra in taxes, there were 3 items that they made a mistake on, one was they were charging me penalty for SEPP withdrawal, 2nd was penalty for a ROTH Conversion and 3rd item, I do not remember now. I called them up, explained and they said, makes sense and asked me to send some documentation and an explanation note which I did. I got a follow up letter accepting my explanations.

Another time, my daughter who had literally tons of day trades was audited. The first step they asked for is all documentation. I sent them literally a large package with hundreds of pages and an excel spreadsheet in detail and stated that I would be available to explain all transactions in person. A couple discussions over the phone and that was it, they closed the file as everything filed was kosher.

@Imissindia: thanks; I will go see a tax lawyer to sort this out. Having lived in the US for more than two decades, I don't want this issue to hang over my head unnecessarily and give an impression that I am somehow subverting the law. I just wish the local US Consulate has an IRS wing to handle these issues for non-residents.

@Desi: It never occurred to me to send them the GC surrender letter. I will go see a tax consultant and let them come up with a plan. Thanks for your detailed response. Regards.

PS: To answer your first question, yes, they went ahead and amended my return on their own. That's where we disagree. I wish IRS can deal with the taxpayers electronically (e-mail, or even via their website).