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Subject:  Re: dividends from foreign corporation as gift? Date:  12/30/2012  11:59 PM
Author:  inparadise Number:  117254 of 123001

If you had documentation showing you had paid, how come the IRS was asking about it? They should have had the records, too. I don't understand this.

Well, we were pretty darned perplexed ourselves, particularly as they had kept track of our social security payments just fine, but the US territory we were in had a parallel but separate tax system and the tax dollars stayed on the island. They were inept at best, and had never shared with the Feds that we had payed our legally required taxes. Fortunately, we had been advised to bring a copy of our return when we dropped off our taxes in person, and have them stamped as received with an official dated stamp. We kept them for all the 9 years we were there. I'll never throw out a tax document again.

Even with all those docs it took over 18 months and a tax payer advocate on our side to straighten it all out.