need clarification ITIN??

faddii · Post by **faddii** » Thu Jul 23, 2015 9:38 pm

so as the year of 2009,2010 and 2011 previous CPA did 1040EZ filing fingle in line 5.

nelsona · Post by **nelsona** » Fri Jul 24, 2015 9:56 am

You still have problems for years before 2014 as well, since you failed to do FBAR and report Cdn income.

You should NEVER have filed 1040. ALWAYS 104NR.

And never use the EZ forms. you never qualified for using the EZ version.

faddii · Post by **faddii** » Fri Jul 24, 2015 10:16 am

so, is the course of action now still to amend with 1040NR? also what about the canadian tax return, does that have to be amended as well?

faddii · Post by **faddii** » Fri Jul 24, 2015 12:11 pm

excuse my little knowledge of the whole subject, I realize that 1040 forms are subject to worldwide income and FBAR etc per say.. however, I dont meet the 3 criteria for being considered a 'resident'...I dont have a green card, I dont meet the presence test and I never filed IRC 7701 to be considered a resident for FBAR purposes. The country of residency is designated on the forms and so does the permanent address thus maintaining closer connection to my country of citizenship Canada Pub 519. I cant speak for the choices of both CPA on why using 1040EZ but this is two CPAs in my city that use the form.

I also want to point out this finding off the 1040EZ instruction.

"Nonresident aliens. If you were a nonresident alien at any time
in 2014, your filing status must be married filing jointly to use
Form 1040EZ. If your filing status is not married filing jointly, you
may have to use Form 1040NR or 1040NR-EZ. Specific rules
apply to determine if you were a nonresident or resident alien.
See Pub. 519 for details, including the rules for students and
scholars who are aliens."

nelsona · Post by **nelsona** » Fri Jul 24, 2015 12:24 pm

How odes this change what I said?

You CHOSE to file 1040, thus you chose to be treated as a resident alien.

If you didn't meet the criteria for resident, then you should not have CHOSEN to file as such.

Once you chose that privilege, you also chose the burden.

FBAR, FATCA, foreign income. I'll buy that there *may* be an out for FBAR (since FBAR is not an IRS tax return), and indeed there is differing definitions on who must file FBAR.

But its your other issues that are WAY off, because you did not include your foreign income.

nelsona · Post by **nelsona** » Fri Jul 24, 2015 12:26 pm

But listen carefully to what you were told by this dubious CPA: He said he filed 1040 because he felt you were going to be resident anyways because of time spent in US, but on the other hand he says you don't have to FBAR because you aren't going to spend enough time in US to be considered resident.

Which is it?

faddii · Post by **faddii** » Fri Jul 24, 2015 3:57 pm

The perception I took implied by the CPA is that a commuter can use 1040 like a US resident yet maintaining nonresident status as stated by country of residency on forms, benefiting from tax brackets (married filing jointly in my case). The later finding is just me reading from pub 519 and the instruction for 1040EZ. While I do understand the irregularity with year 2014 preparation by the CPA, I am not sure why the federal refund worked with no issues in the previous years to 2014 while form 1040EZ was the wrong choice for those years also as you mentioned. I donâ€™t see a well reason to connect all these events altogether. Anyhow, is the course of action still to amend 1040NR? What about Canada side, I assume we need to amend as well? Thank you for your patience.

nelsona · Post by **nelsona** » Fri Jul 24, 2015 10:40 pm

Yes, you should amend ALL your returns to 1040NR, since otherwise you have failed to report income and are liable for fines.

Just so your are clear, a Cdn can file a 1040 ANYTIME. But to do so means filing a FULL world-wide income return, not just with US-source income. Otherwise he should file a 1040NR, whether he is single or married.

faddii · Post by **faddii** » Sat Jul 25, 2015 10:54 am

Can a person amend many years back? I read somewhere only 3 years back.

To do so and to go back that many years is astoneshingly overwhelming task and very stressfull with complications. For the years prior to 2014, the only source of income is US source, no wages or tips or unearned income from other sources or foregin income from canada.

as for fines, by what means do you get notified? when does that occur usually? for every tax year you're notified? what are the steps involved.

faddii · Post by **faddii** » Sat Jul 25, 2015 11:01 am

Just to be clear, I have filed Canadian taxes as well for all years along. The treaty between Canada and US is there to avoide double taxation. I filed tax returns to each country.

nelsona · Post by **nelsona** » Sat Jul 25, 2015 7:08 pm

Typically, when one has repeatedly made the same omission, IRS will aks for 6 years.

While the treaty prevents double taxation, one must still, for IRS purposes, report all income and then take whatever credits, exemptions and deductions are allowed.
Unlike Canada, once cannot simply not file if one does not owe taxes. But, in any event, having filed one's return, one I=undertakes to report income FULLY, which you have not done.