I realize and acknowledge, of course, that no-one here is my attorney or tax accountant, and any opinions offered should not relied upon. However, I would appreciate any informed opinions or informal advice anyone has to offer. (If Mods think this would be better in IMHO, please feel free to move it, but I am interested in a factual answer as far as may be possible.)
The situation is as follows. Up until the beginning of May 2011 I was resident in the United States (as a “permanent resident” with a “green card”). However, during that period I was out of work and not earning any money. I was living off savings. At the beginning of May I returned to live permanently in the United Kingdom, where I was born and of which I am a citizen. However, I still have some money in the U.S., in particular, a Rollover IRA, and in September 2011,in need of cash, I withdrew (i.e., transferred to my current account in England) just under $7,000 from it.
So far as I understand, such a withdrawal would normally be subject to federal income tax, although when I made the withdrawal I was (just) over the age (59.5, I understand) below which penalty taxation levels apply, so I think only at the standard rate. Presumably the investment company where the account is held will have informed the IRS about the withdrawal. However, I was no longer resident in the U.S.A. at the time I made it (and do not expect to be again). Also, given that the amount was so small and that I had no other U.S. earnings in 2011, it is very possible that after doing all the calculations, and taking the standard deduction, I would find that nothing would be owed on it in any case, or only a negligible amount.
What I want to know is, under these circumstances, do I really need to go through the agonies of preparing and filing a U.S. tax return? (I would have to do it all myself.) Although the money came from a U.S. account (and other money remains in it), I was not a U.S. resident at the time of the withdrawal and certainly any other money I might have been earning at the time (not that I was!) would not have been subject to U.S. income tax, but to British. On the other hand, presumably the U.S. IRS (but not, I imagine - though I may be wrong the British tax authorities) will have been informed about it, and may be expecting something, even if not very much in cash terms, from me. Should I, under these circumstances, file a U.S. Federal tax return (together with a check, I suppose, if I actually turn out to owe anything)? Will they be coming after me if it turns out I owe them some trivial amount, and is this money subject to U.S. income tax at all, given that I was not living in the U.S. (and have never been a U.S. citizen) at the time of the withdrawal?
I certainly do not want to wind up being taxed twice on it, in both countries (and, surely, I should not be), but I have even less idea about the status of this withdrawal with respect to British tax law. That is another matter, I guess, but if anyone has any idea about that I would also be glad to hear.
