Non-resident tax not being withheld on Canadian Mutual funds

[yottaflops]

I am a U.S. resident, with a Canadian investment account holding some Canadian mutual funds. The broker knows I'm a U.S. resident. I had expected that the broker would withhold 15% of the mutual fund dividends. However, they didn't; they said that because these are Canadian mutual funds, and technically I can't buy them*, they have no way of withholding the non-resident tax for me.

*I'd owned these funds for a long time; they said they can't force me to sell them, but the account is sell-only and I can't buy any more.

They said I would be responsible for paying the non-resident tax directly to the CRA.

From this similar topic here:
forums.serbinski.com/viewtopic.php?t=10589

it sounds like I need to just write a check to the CRA for 15% of all my dividends?

Also, would I still be able to deduct the tax that I paid to the CRA on my US tax return as a foreign tax credit?

Thanks!

[nelsona]

Yes. letter attaching your NR4/T3/T5's and explanation.

They should still be withholding form you, but if they won't....

The Cdn tax paid can be used as a credit on form 1116, passive income.

[yottaflops]

Thanks, Nelson!

One quick follow-up question: I am going through previous years' statements, and I think previous years are off too. If I remit tax to the CRA now for 2013 (for example), can/how do I get a credit for my US taxes, which I already paid to the IRS? (Since I just go by the tax forms the broker sent me, I had reported the full amount of dividends to the IRS, without claiming credit for withholding.)

If I can claim a credit for taxes I already paid to the IRS for 2013, can I claim the credit this year, or do I have to file an amendment for 2013? (assuming that I can back claim the credit)

Thanks again!

[nelsona]

You need to amend the returns, and include form 1116.

[nelsona]

the previous returns.