Serbinski Accounting Firms

cqhg, thank you! I saved that number in case I need to use it in the future. The form 843 took a year and multiple phone calls with them. A lot of nasty letters from the collection department during the process. How did you find out that number?

cqhg wrote:
> snowbird wrote:
> > It just stated ...

Form 843 with a letter of explanation. I did not have to go through appeal.

CP-15 means your case is in early stage of collection.

What is the CP15 saying? Failed to file informational return or something else? I would write them a letter stating that a corrected return has been sent. In the future, send every thing with certified mails. You would also call IRS, speak to ...

Went through the exact same thing 15 years ago except I was completely ignorant about the tax/compliance requirements complications.

All I can tell you is if you don't plan to return to Canada, then sell your RRSP, RESP pay the tax. Move the proceed to invest in the US. Much better investment ...

Excellent! So no more 3520/3520A for RESP as well?
CdnAmerican wrote:
> Hi all - I just wanted to close the loop on this one, and give the feds
> some credit. Today I received a letter from the IRS stating "Our
> records show you no longer have to file Form(s) 1041." Easy as that.
> Sometimes the ...

The compliance requirements to file proper paperwork for owner of foreign business is quite complex and failure to file them hefty penalties. You may want to hire an account to advise how much is cost to file those paperwork every year.

Rev. Proc 2020-17 relieves the filing requirement for 3520A and 3520 for Canadian RESP. For those who have been filing them every year, do you just stop filing them and hoping you're not getting a computer generated letter? And if it does come later, one would just tell IRS I'm not required to file ...

I just received an IRS letter today saying:

Thank you for your inqury dated June 16, 2012.
We are removing the penalty based on your explanation of why you filed your return late.




PHEW.....

Back to my 3520-A issue... I found that from the IRS manual section. It goes

http://www.irs.gov/irm/part20/irm_20-001-009-cont01.html#d0e3592

20.1.9.14 (04-22-2011)
IRC 6677(a) and (b) – Foreign Trusts with U.S. Owners - Form 3520-A

1. The penalties for failure to file Form 3520-A are similar ...

Primo,

Yes, it seems like the 3520A is due on mar 15 instead of apr 17 as I thought. The trust never filed 3520A for me and I have to do it myself every year. But I don't know its due earlier than 3520. I just read that the penalty of late filing 3520A is greater of 10k or 5% of the value. Dang ...

That sucks.
Did they state the IRC code that the penalty is based upon? Have you sent the letter to explain why you were not able to comply? If yes, did they say your "reasonable cause" is rejected?


[quote="zad888"]I had the same issue...I submitted both 2009 & 2010 in April 2011. i received the ...

Hi CdnAMerican,

I filed my 2011 3520 on Apr 2012 with 3520-A attached to it. I didn't file 3520-A separately. I was under impression that's good enough.

But I received a letter 3653c exactly same as yours "we are proposing a civil penalty" and asked me to explain the cause for late filing. I'm ...

My RRSP was "locked" for year 2006 -- that means no contribution, no withdrawal, no fund switching. Am I correct my gain/loss is the difference between the first and last day of yr 2006?

Thanks!

[quote]
You will owe no US tax if you sell it withing 3 years of moving to US.
[/quote]

I bought my house in Ontario in May 2003, became a US resident in ARP 2005, wife moved to US in Nov 2005. We filed 1040 joint return for 2005. The house was sold in Sep 2006. Our net tax liability to CRA is nil ...

So if I use 8891 to defer my RRSP, then I do NOT need to include the RRSP "internal earnings" on my 1040 but I will need to include the income in my 540 form as investment income. Is that correct?