I owe Uncle Samu

Approximately ￥240,000.

Because of US income treaty with Japan, incomes earned by U.S. residents while in Japan is exempt from Japanese income tax. This was one of the most attractive things about working as a JET in Japan: not only are we exempt from Japanese income tax because we are Americans, we are also exempt from US income tax because we make less than $80,000.

The catch: you would have to file Form 8802 and obtain the U.S. Residency Certification (Form 6166) for the tax year before Japan. Well, not much of a catch for those with a straight and spotless tax record.

Which, I was informed last night, after months of faxes and international calls with 3 different branches of the IRS, I do not have. Apparently my 2003 1040EZ (the year of HHR and Saddleback) was rejected--somehow that did not explain the refund I received.

Without the 2003 tax return on record, I cannot get Form 6166. Without Form 6166, I cannot prove tax liability in 2003, and cannot prove US residency in 2003. If I don't give my Board of Education my Form 6166, I owe Japanese income tax for the last 2 years--about $200 per month, for 24 months.

I'm so confused. Where do I go from here?

1) Since the 2003 1040EZ was prepared by H&R Block, I will call them tonight (yet another all-nighter) and try to find out what went wrong from their end. The IRS phone lady (the 4th one I spoke with), while helpful, could not decipher the tax code that explains the reason for rejection. I have a copy of my 2003 1040 from Joseph Somebody of H&R Block, but that didn't seem to mean that much to the IRS.

2) The IRS will be sending me my 2003 W2 forms and a letter saying that my 2003 tax return was filed but rejected. Hopefully the Residency Certification Unit of the IRS will take those into account. I mean I had to be tax-liable if my taxes were still withheld right?

3) Meanwhile, along with the W2 forms, IRS will also be sending me other documents so that I can refile 2003 tax return. Question is, will it matter if I'm refiling it while I'm in Japan? Will my tax address for the refile still be in US to qualify for U.S. residency?

4) Keep slugging at it despite the glacial pace with which IRS moves. Problem is, these (fix 2003 return AND receive form 6166) will probably not be taken care of by the time I leave Japan (eventually in early September). The case for my Form 6166 application will close in 4 weeks, and I doubt I can get the 2003 return on file (either refiling or somehow fixing) by then. Even if I did eventually, re-applying for form 6166, after the original (well actualy the 4th starting last year) case closes, will take another 3 months, minimum.

5) I could just leave Japan, without paying the income tax, and become a person non grata or something. Maybe I won't be able to come back once I do (not to trivialize but this does affect my immmediate travel plans: back to Taiwan late July, back to Japan late August, watch FIFA championship in Tokyo with Mark, then back to US in September). But somehow this kind of torched earth campaign sounds appealing to me.

6) Talk to my BOE. I think it's time for a me-JTE-BOE tax person conference. Inform them of my situation, and get everybody on the same page since I'm still dependent on the BOE for my pension refund (about $1,000) and my plane ride back home.

7) Hopefully, we'll find an arrangement to allow me to keep working out the IRS kinks while I'm back in the US, and without paying Japanese income tax. Don't know if this involves paying the income tax now and getting it refunded once I get my form 6166.