Serbinski Accounting Firms

Further to this...the day you gave up your status you would have become a NRA (non resident alien) and would have to follow the rules from there.

The 1040NR is for the entire year. The world income from pre-October 8th shown on 1040 is brough on to 1040NR, along with any US-sourced income from post october 8, and then tax is calculated by the 1040NR.


Dualupet

be it far from me to interpret someone else's thread, but I don't think income ...

@one time poster

Of course you are correct..in hindsight this stock should be reported on Part 2, and this year (for me)it will be.

As Nelsona eluded to on this thread some time ago, part 1 or part 2 is not the issue rather that the account has been reported. An error here can be easily corrected ...

I guess the question here is did you know or have reason to know based on readily accessible information of this foreign trust?

I don't think the law suite really makes any difference at this point.

I really hope Nelsona chimes in, because I guarentee all your questions will be answered.

Hmm...a good question as you don't really know what you have yet as it is in despute.

You might be OK on that one.

Again...I will let someone else answer as my knowledge on foreign trusts is limited.

Im not sure about the 40% inaccuracy penalty...or where it came from.

More importantly, your credit cards and sears card might be the least of your worries.

You may have had to file additional paperwork all along since you were the beneficiary of a trust.

Again....not sure on this.

The penalty to failure to file the form is 10k. there is also a penalty/fine of 40% for inaccurate tabulation (i think anyway) ie: if you tabulate you have 10k in an account, and have 15k, then there is a 40% fine on the 5k...again, i am not totally accurate on this.

you wrote;

If I exchange some ...

Well....FATCA is delayed until 2014...Canada might MIGHT sign an IGA with the United States...and besides, FATCA is not going to look at account balances below 50k, especially if they were open before implementation.

Sears Canada is not a financial institution so I wouldn't even worry about it...as ...

As for the penalty...i believe it is 10k for failure to file the form only.

You also have to remember that this form is brand new...when I called the IRS for questions or clarifications, they basically told me in no uncertain terms that they were not trained on this form and would not entertain any ...

Yea....like I said...i am not sure what type of credit card you have...sounds like a prepaid card (?).

I can only tell you what I did....i have never had a positive balance on my card, nor has the bank ever reimbursed me, or put any value on my card, therefore it has never had a positive balance ...

it is my understanding....and Nelsona can clarify this because i am usuallly worng....that a credit card is a 'tool' and does not carry a positive balance.

Who told you that credit cards go on 8938?

Taxpoor I think you are getting hung up on the definition. When reviewing the IRS information on which financial accounts go on Fbar and 8938, (there is a table) it states that insurance plans or annunities have to go on both if they have a 'cash value'.

To me this means a cash value to the ...

Newdual,

Sorry..didn't mean to alarm you with the reference to 3520 forms. In fact the 8891 replaces the 3520 form for RRSP purpose only.

I was referring to the Fatca form 8938. If one files an 8891 form, you need not list it on 8938, but rather just tick off a box on part 3. Not sure why they did ...

And would one also have to check off the box for "2" 3520 forms on Part 3 of the 8938 since you are technically filing two 8891 forms....(?) (if your net worth is such that this form is required).

Also, thanks NewDual for bringing this up as it made me realize that my account numbers were also ...