Serbinski Accounting Firms

If your mutual funds are a RRSPs, you need to amend your tax returns and file the 8891. If this is the case, you may want to elect to defer the tax to avoid a dual tax situation.

If these mutual funds are not under a RRSP, then you need to look at filing the 3520. Not fun.

Good Luck,

Al

I am wondering if the costs incured while obtaining TN status can be considered valid Employee Business expenses and therefore deductable on Schedule A? i.e. Fuel & Milage while traveling to a POE or filing fees for I-129 and I-907.

Thanks,

Al

If either of you have RRSP's you will have to file the 8891, as well.

You are correct, I did file my T1 as a non-resident and I did not report the interest income; and according to my assessment, CCRA does not have any issue with "your initial post, quite frankly, come across like someone who just discovered the internet" You're right Nelson, no ridicule goi...

Thank you Nelson for your reply.

I would have responded sooner, but it appears as though I have been banned from posting to this site from my pc since my last post. I wonder how that happened? In any event, there are ways around that. Let's move on to the subject at hand.

In 2004 I naively trusted that a “Professionalâ€￾ who specifically specialized in Canadian and U.S. tax preparation would actually have a clue about they are doing. They are supposed to be experts in their field!!! Unfortunately for me, they can make grievous errors and walk away without any recourse, but the burden of their incompetence still falls upon me.

It was not until 2006 that I began to understand the errors have been committed, and again I foolishly sought out Professional assistance to resolve my tax situation, but clearly incompetence abounds on both sides of the border.

As you have pointed out, the 2007 Tax year I finally “got it rightâ€￾ by abandoning my trust in Professionals and doing it myself. The irony is that I will probably have to trust another "Professional", a tax lawyer. to guide me through Voluntary Disclosure, and hope that they get it right.

To answer your question regarding my departure return. 2004 was my departure return and I did file my deemed disposition if that is the point of your question? Maybe I am just being naive again, but according to the emigrants guide, you are to file using the T1. http://www.cra-arc.gc.ca/tax/nonresiden ... g-e.html#e

Now, I am not pleading that my situation is someone else’s fault. I have made mistakes in procedure and judgement, and I am taking responsibility to correct them. I doubt that I am the first person to have ever misplaced trust in a Professional, and I doubt I will be the last.

Regarding my filing of my T1’s when I have no Canadian taxable liability, although not required, it also not wrong to do so. I have confirmed this with more than one agent at the International Tax Office. I file so that I will have a contiguous record of my returns, and that where will be no question to why there are gaps in my Canadian returns. This is purely a personal preference and not a legal obligation.

Finally, thank you for your always insightful replies. It is true that I occasionally participate in the same Immigration related forums as you do, and I clearly acknowledge that you possess a wealth of knowledge on the posted subjects; however your last comment is uncalled for. The purpose of this forum is to help people in similar circumstances and not to ridicule them.


Al

I apologize for the lengthy explanation, but my taxes have been messed up enough and I just want to know if I am on the right track. I am a Canadian Citizen on TN and this is my situation.

2004, Dual Status year
• Hired a Canadian CMA that purported to be “Enrolled to practice before the Internal Revenue Serviceâ€￾. This CMA prepared both my Canadian and U.S. tax returns.
• Filed T1 for Canadian sourced income
• Filed NR1040 with Closer Connection Statement to Canada, for U.S. sourced income.
• CMA did NOT submit Schedule B, did not file any 8891’s for my RRSP’s, and did not file a TD F90-22.1.

2005
• Self Prepared
• No Canadian sourced income.
• Contributed to RRSP’s and filed a T1 to carry forward my RRSP Basis.
• Filed 1040
• Did not file Schedule B-Part III, did not file 8891’s for my RRSP’s, and did not file a TD F90-22.1.

2006
• Suspecting that 2005 was not prepared correctly, I hired a U.S. CPA that claimed experience in both Canadian and U.S. tax returns.
• Earned less than $100 in Canadian sourced interest income, Non-Resident Tax was withheld.
• Filed T1 to carry forward my RRSP Basis.
• CPA prepared 1040X and amended 2005 U.S. return and attached missing 8891’s for RRSP’s; however, did not submit Schedule B or TD F90-22.1 for 2005.
• Filed 1040 for 2006, this time submitting Schedule B – Part III completed, 8891’s for RRSP’s, and filed TD F90-22.1 for Canadian Bank accounts only (did not include the RRSP’s).

2007
• Earned less than $100 in Canadian sourced interest income, Non-Resident Tax withheld.
• Filed T1 to carry forward my RRSP Basis.
• Filed 1040 with Schedule B – Part III completed, submitted 8891’s for RRSP’s , and filed TD F90-22.1 for Canadian Bank accounts, including RRSP’s.

Here is how I think I should straighten out this mess:
1. Amend 2004 and submit Schedule B, 8891’s for RRSP’s, and file the TD F90-22.1 including Bank Accounts and RRPS’s.
2. Amend 2005 again, this time submitting Schedule B – Part III, and file a TD F90-22.1.
3. For 2006, file a new TD F90-22.1, this time include the missing RRSP’s, as well as the previously reported Bank Accounts.


Opinions and suggestions?

Thanks

Al

As I am reading publication 529, Miscellaneous Deductions, I am wondering if the expenses incurred while obtaining a new TN for the same employer, qualify as Employee Unreimbursed Expenses? During 2007 I incurred travel, lodging and legal expenses directly related to obtaining a new TN at a POE. Acc...

I have 2 RRSP's that in previous years I have elected to defer the tax on the undistributed earnings. In 2007 these RRSP's were rolled over into 2 different RRSP investments with the same bank, but now have different account numbers than the ones I previously elected. Now I am confused as to how to ...