The pains of dual citizenship and taxes

[rivers]

I'm a dual US/UK citizen, having moved here from the US for my now wife back in 2011, and applying for citizenship in 2017. For those that aren't aware, regardless of where a US citizen lives and works, they still have to file taxes (not necessarily pay anything, but still need to file). Annoying yes, but there are some perks- namely a covid stimulus pay out and a sizeable tax refund every year because I have a child (who is also a US citizen, and will have to file US taxes even if he never works/lives in the US). US taxes aren't exactly straightforward, but I use software that makes it pretty painless, and relatively quick as all my information is saved from previous years. I've never had an issue, until this year. Nothing has changed for the past 3 years bar my salary, and it wasn't a drastic change, mostly due to the exchange rate on the day- same address, same employer, same one child. But, it somehow flagged up in the system as potential identity theft, and I now need to prove my identity. I spent 4 hours online uploading documents to prove who I was just so I could speak to someone on a video chat that then looked at my passport to say "Yes that's you". This was just to open an account with the IRS to begin the process of proving my identity to them. I spent another 2 hours on the phone trying to speak to someone, only for them to tell me that I need to wait for a letter (that could only be sent to the address on my tax return) to give a verification number. Estimated arrival date from the US: 60 days. But they were having trouble inputting my address, so it may not actually arrive and the only other option is for me to go to my local tax office. I somehow don't think the HMRC is going to be any help.
Anyway, I filed my taxes so my refund coincided with works being done on the house. So who knows where I'm now going to get this extra money from...
UK taxes (if you're PAYE) are dead simple. Here's your new tax code, have a good day.

 

[Slick]

I'm a dual US/UK citizen, having moved here from the US for my now wife back in 2011, and applying for citizenship in 2017. For those that aren't aware, regardless of where a US citizen lives and works, they still have to file taxes (not necessarily pay anything, but still need to file). Annoying yes, but there are some perks- namely a covid stimulus pay out and a sizeable tax refund every year because I have a child (who is also a US citizen, and will have to file US taxes even if he never works/lives in the US). US taxes aren't exactly straightforward, but I use software that makes it pretty painless, and relatively quick as all my information is saved from previous years. I've never had an issue, until this year. Nothing has changed for the past 3 years bar my salary, and it wasn't a drastic change, mostly due to the exchange rate on the day- same address, same employer, same one child. But, it somehow flagged up in the system as potential identity theft, and I now need to prove my identity. I spent 4 hours online uploading documents to prove who I was just so I could speak to someone on a video chat that then looked at my passport to say "Yes that's you". This was just to open an account with the IRS to begin the process of proving my identity to them. I spent another 2 hours on the phone trying to speak to someone, only for them to tell me that I need to wait for a letter (that could only be sent to the address on my tax return) to give a verification number. Estimated arrival date from the US: 60 days. But they were having trouble inputting my address, so it may not actually arrive and the only other option is for me to go to my local tax office. I somehow don't think the HMRC is going to be any help.
Anyway, I filed my taxes so my refund coincided with works being done on the house. So who knows where I'm now going to get this extra money from...
UK taxes (if you're PAYE) are dead simple. Here's your new tax code, have a good day.

Red tape is a pain in the derriere wherever you live.

My family went the opposite way from you and now live stateside, and I have heard my sister say from time to time how difficult it can be, despite her now having citizenship.

One thing, I did the prove who you are thing for a background check I required on the .gov site, and it was amazingly simple. So much so, I no longer have to go through all that pain for any future issues and I was really impressed with it.

Also, PAYE isn't the nirvana you might think it is for some, we all have complex lives and work history.

 

[Bazzer]

Having professionally dealt with the IRS, I can understand your frustration.
And no, HMRC will not be any help. The local tax office no longer exists, so you will almost certainly be dealing with a call centre. And I can be pretty certain the staff there will have no experience of this.
The UK tax office which provides your UK tax code, is also likely to have little, if any experience, of your circumstances.
But even if, by some lucky throw of the dice, you actually stumbled upon someone who knew the procedures to be followed in liaising with the IRS, that wouldn't get you away from the filing requirement. IIRC that sticks with the citizen, whatever an overseas fisc tells the IRS.

 

[Time Waster]

My grandad was a us citizen and uk resident but not citizen. Great for him because his US pension was soon much better than UK pension he got. He'd got full uk pension and ten years total us pension I think, but only because army time counted for double years I got told. Then when he died my gran, who also got us pension I think, took over na good chunk of his pension after he died. She could easily live of the us pension but not so with uk pension only. With both she managed to put a lot away after retirement.

For all that European holidays were a right pain. He used to have to spend ba day or more in London visiting all the embassies for all the European countries he went to, including something with uk paperwork. He was on the railways so got cheap holiday deals using European railways to get there. Going through 4 or more countries to get there, then the same ones back! No idea why he didn't get citizenship but i guess he was quietly proud of being American and couldn't change allegiances.

Another big risk was before he got residency anything could result in deportation. It nearly happened when corrupt 50s or 60s coppers tried to n fit him up. His brother in law was senior in both the masons and police. So the corrupt coppers got a shock and my grandad got a clean reputation! I would have loved to have seen how that one played out. Of course back then there was a lot of prejudice towards Americans in that city. Hang up of wwii and gi brides thing apparently.

I guess being American but living in UK has positives and negatives. us tax law has created nightmares for some. I'd heard of a woman who's had a $22k tax bill. Something to do with a us dad eho registered her as an American citizen at birth but she'd never been there but the irc still claimed back taxes! No idea how it ended. I believe Boris Johnson was born in America and nearly got caught out but her good legal advice and got it sorted. I think the IRC no longer interested in him.

 

[The Crofted Crest]

I once got a letter from the Dutch tax peeps. A letter, on a sheet of A4 with my name and address on it that the postman left in the letter box. You get the picture. It asked me to provide the Dutch tax peeps, who sent me the letter, to provide them with my name and address because they didn't have them in their records.