The Antiques Trade Gazette reported that May 15^th 2007 was the day when the vendor certificates, issued during the settlement of the class action, would finally mature. Some $125m worth of certificates were issued in 2003 but it appears that the vast majority have not been used and can be redeemed in cash. Converting the vouchers to cash is apparently relatively simple, with an approach to Sotheby’s or Christie’s being the first step. However, given that the settlement was made in New York, non-US citizens must have their applications rubber-stamped by the US Embassy at a cost of about $75. Members may thus choose to sell their vouchers to the Chicago Clearing Company (CCC) who are currently paying 94 cents in the Dollar with no administration charges. Also, members had until 15^th June 2007 to reclaim the withholding tax charged by the IRS in 2003. Fuller details on reclaiming tax are available elsewhere on this page.

Websites

Sales in the USA: http://www.auctionsettlement.com/

Sales out side the USA: http://www.internationalauctionsettlement.com/

Garden City Group: +1 888 469 4788

The Chicago Clearing Corporation, the US traders in class action certificates, buy and sell the vouchers issued after the settlement of the case for auction sales and purchases in the USA. Their e-mail address is uk@chicagoclearing.com and their website http://www.chicagoclearing.com/.

Members who wish to reclaim the tax should now (2004 tax year) apply individually to the IRS for a refund for the 2003 tax year. This will be a laborious process. Members who do not already have an Employer Identification Number (EIN) will need to apply for one using form SS-4. It is important to tick Box 8a "Other" and to specify your type of business: "Foreign Sole Proprietor" or whatever. It is also important to tick Box 9 "Other" and to specify "Tax Treaty Benefit". Members will then need to submit tax returns to the IRS. This is done on Form 1120-F (2003). Forms are now available from The IRS Office, US Embassy, Grosvenor Square, London W1A 1AE, or online on www.irs.gov. If you are using the website, you can find the forms through the "Search for forms and publications" facility on the home page. Forms should be submitted to the IRS Office. All this advice is believed to hold good for ABA overseas members who do not have branches in the USA, and whose countries have tax treaties with the USA. Members should note that Form 1120-F asks them to disclose all other income derived in the USA. CCC will do this on your behalf; they will charge 15% of the total recovery up to a maximum of $2,500. Their contact details are above.

Cheques received!

Members report having received cheques in mid-November 2005, apparently compensation for purchases at auctions outside the USA. Sellers may be paid in two stages - one cheque in a month or two and another in June next year. It is now almost two years since the initial settlement deadline when a US Court decision on 25th August 2005 cleared the way for payments to be made. Garden City Group expected all cheques to have been despatched by the end of September 2005. The delay was because a pro-rata settlement was agreed in this case, and thus nothing could be paid out until the validity of every claim had been assessed. The deadline for submission of claims was December 10^th 2003. The website address for queries is http://www.internationalauctionsettlement.com/.

Reviewed February 2007 - this entry will be left on the site for a few more months.