United States Tax Returns

Individual – US

OVDP – THE OFFSHORE VOLUNTARY DISCLOSURE PROGRAM (for taxpayers intentionally hiding money overseas) WILL END 9/28/2018.

STREAMING FILING PROCEDURES (for taxpayers who did not know they had a filing obligation) CLASSIFIED AS NON-FILERS WILL CONTINUE.  BEST OPTION IS TO BE COMPLIANT AS SOON AS POSSIBLE.

All US tax returns (Form 1040) filed after December 31, 2010 must be prepared by a IRS Registered Return Tax Preparer with a Preparer Tax Identification Number (PTIN). As a Canadian citizen, for US tax purposes, it is mandatory that you file a US tax return on which you must report your worldwide incomeCharmaine Lawrence Professional Corporation, Chartered Professional Accountant is a Registered Return Tax Preparer and is authorized to prepare US tax returns.

In addition to filing your US Form 1040 Income Tax Return, the current law states that every US citizen must file the Foreign Bank Account and Financial Records (FBAR), FinCen Form 114 (new) replaces TDF 90-22.1.  You are required to EFILE (effective for 2013) this form if at any time during the year you have more than $10,000 in one or more foreign bank and financial accounts.  The FBAR currently has the same due date as your tax return.  You may be subject to civil penalties and/or criminal penalties for failure to file.  Charmaine Lawrence Professional Corporation, Chartered Professional Accountant can assist you to be compliant.

Other Forms that US citizens must file are:

1. Forms 3520 & 3520-A for Foreign Trusts (e.g. RESPs, TFSAs & Mutual Funds)

2. Form 5471 if you have 10% ownership or control of a Foreign Corporation.

3. Form 8621 if you have direct or indirect ownership of a Passive Foreign Investment Company.

4. Form 8833 for treaty-based return disclosure.

5. Form 8938 to comply with FATCA reporting beginning in 2011.

Beginning in July, 2014 all Canadian Financial Institutions such as Banks, Credit Unions, Stock Brokers, Hedge Funds, Pension Funds, Insurance Companies and Trusts are required to report information to the IRS regarding accounts held  their clients who are US citizens.  This is new federal legislation called Foreign Account Tax Compliance Act or FATCA.  There are severe penalties for non compliance.

FATCA also requires US citizens with foreign financial assets in excess of $400,000 if you are married filing jointly or $200,000 for all other filing status to report those assets on your Form 1040 tax return.

Canadian Financial Institutions are required to search electronic databases, perform diligent review of account files and request documentation to confirm your US citizenship.

Call Charmaine Lawrence Professional Corporation, Chartered Professional Accountant today and make an appointment to have your US Tax Returns prepared.

For Resources and Links click here

For check list to file your US taxes  click here

The US taxes are based upon the Canadian taxes, therefore the check list for Canadian taxes will also apply to US taxes.