Search found 137 matches

by Mark T Serbinski CA CPA
Tue Jan 29, 2019 10:48 am
Forum: Canada / United States Tax & Accounting
Topic: Planning for excess funds in CCPC
Replies: 2
Views: 341

Re: Planning for excess funds in CCPC

New IRS rules related to the Transition Tax in IRC 965 make it unattractive for any US person to accumulate retained earnings with a foreign corporation, and the transition tax retroactively taxes retained earnings back to 1986. Here are some references: https://serbinski.com/treatment-deferred-fore...
by Mark T Serbinski CA CPA
Tue Jan 29, 2019 10:43 am
Forum: Canada / United States Tax & Accounting
Topic: Common Law in Canada recognized in America?
Replies: 9
Views: 482

Re: Common Law in Canada recognized in America?

The Internal Revenue Service has upheld the notion that common law marriages are recognized for purposes of filing a joint return (for over 50 years). In Revenue Ruling 58-66 the Service says: "In Revenue Ruling 58-66, the Service stated that a couple would be treated as married for purposes of Fede...
by Mark T Serbinski CA CPA
Fri Jan 25, 2019 11:28 am
Forum: Canada / United States Tax & Accounting
Topic: CRA/IRS
Replies: 2
Views: 324

Re: CRA/IRS

Here is a recent article from CBC:

http://www.msn.com/en-ca/money/topstori ... ocid=ientp

We generally take the position that everything about our financial lives is publicly known, and recommend that you file returns on that assumption.
by Mark T Serbinski CA CPA
Thu Jan 24, 2019 6:57 pm
Forum: Important Tax Changes - 2018 Returns
Topic: 2018 Tax Changes
Replies: 0
Views: 1173

2018 Tax Changes

With the introduction of the Tax Cuts and Jobs Act, tax filing rules for 2018 have substantially changed.

We have outlined some of the major changes here:

https://serbinski.com/2018-tax-cuts-and ... al-changes
by Mark T Serbinski CA CPA
Sun Nov 19, 2017 2:09 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian with Green Card. Should I get dual citizenship?
Replies: 3
Views: 1333

One further advantage of US citizenship is that tax free transfers between spouses on death are only available if both spouses are U.S. citizens.
by Mark T Serbinski CA CPA
Sat Nov 18, 2017 11:48 am
Forum: Canada / United States Tax & Accounting
Topic: Which type of Canadian investments would not be PFIC?
Replies: 4
Views: 1557

Generally, a stock of a listed corporation would not be a PFIC.

A bank conducts the active business of borrowing and lending, and is thus not engaged in passive activities.

The definition is intended to classify pooled investment situations, mutual funds and similar investment vehicles as PFIC's.
by Mark T Serbinski CA CPA
Mon Dec 30, 2013 3:44 pm
Forum: Canada / United States Tax & Accounting
Topic: Joint accounts with income, NRA spouse
Replies: 6
Views: 3075

Also, if you elect to file a joint return with your non US citizen wife, you would need to include all FBAR filings etc. for her. Sometimes this election is helpful when "married filing separately" gives rise to AMT. If you do file MFS, you may also find that even if you include all of the income fr...
by Mark T Serbinski CA CPA
Wed Dec 25, 2013 12:20 pm
Forum: Canada / United States Tax & Accounting
Topic: Resident in Canada but getting paid in USA
Replies: 6
Views: 2169

NOTE: Your return in the U.S. will depend on the overall time spent in the U.S. in any 12 month period. If you spend over 183 days in the U.S., you may also be considered a resident of the U.S., and this will mean that you will file in the U.S. in the same way as a U.S. resident. Your tax due and th...
by Mark T Serbinski CA CPA
Sun Dec 16, 2012 1:54 pm
Forum: Canada / United States Tax & Accounting
Topic: Selling non-registared Cdn Mutual Funds vs PFIC reporting
Replies: 8
Views: 3233

Although there may not be specific penalties for failure to file form 8621, a US return is not considered complete unless all required forms are filed. This may mean that the statute of limitations would not close the return after three years as in the case of complete returns, and civil penalties c...
by Mark T Serbinski CA CPA
Fri Nov 30, 2012 10:50 pm
Forum: Canada / United States Tax & Accounting
Topic: Help filling 3520 / 3520a for ING Direct TFSA Saving Account
Replies: 13
Views: 5963

Even though the institution calls this a "deposit account" for U.S. purposes, any TFSA is still a foreign grantor trust. You, as the trustee and grantor, establish a trust which is has certain tax attributes associated with it, but only as long as the funds remain within the trust. If the institutio...
by Mark T Serbinski CA CPA
Thu Jul 26, 2012 6:22 am
Forum: Canada / United States Tax & Accounting
Topic: IRS announced changes to ITIN application process
Replies: 1
Views: 1762

The "Certifying Acceptance Agent" program has effectively been suspended, and any W7 application must now include identification data certified by the issuer. In the case of Canadians, this means that you need to visit passport Canada to have them issue a certified copy of your passport for inclusio...
by Mark T Serbinski CA CPA
Mon Jun 25, 2012 6:25 pm
Forum: Canada / United States Tax & Accounting
Topic: certified acceptance agents can no longer certify documents
Replies: 2
Views: 1782

This new development is true.

However, there is another way to satisfy the documentation requirement, and that is to provide a copy of your passport certified by the issuing agency.

This is a free service.

See our site under "working in the USA" for details.
by Mark T Serbinski CA CPA
Thu Dec 15, 2011 10:48 am
Forum: Canada / United States Tax & Accounting
Topic: US Eases Failure to File and FBAR penalties
Replies: 11
Views: 8512

US Eases Failure to File and FBAR penalties

IRS has relaxed their view of U.S. citizens or Dual citizens who live outside the U.S. In FS-2011-13, IRS states that taxpayers who owe no tax due to the application of foreign tax credits or foreign earned income exclusions will not be assessed failure to file or FBAR penalties in cases where IRS h...
by Mark T Serbinski CA CPA
Mon Jun 06, 2011 10:56 am
Forum: Canada / United States Tax & Accounting
Topic: does a Canadian RESP need to get a US EIN?
Replies: 4
Views: 3339

Note: We have had IRS requests for SS-4 forms for Canadian trusts filing 3520/3520A forms. In many cases, IRS assigns the EIN and then asks for the SS-4.

We have taken the position that we will submit an SS-4 with any new 3520/3520A filing for TFSA or RESP accounts.