Serbinski Accounting Firms

Interested in knowing if anyone else has had issues this year with being able to give supporting evidence for a CRA tax credit on taxes paid to US for US-based income? I was naturally audited on the tax credit (I had withdrawn my IRA) and when I requested an Account Transcript from the IRS it showed...

Doing some more reading and it appears that the IRS does not impose an underpayment penalty if you had no tax liability for the previous year, which I didn't, so it seems I can wait until I'm doing my taxes to pay the remainder. Does that ring true to you?

So I went ahead and withdrew the IRA funds this year, however the bank only withheld 10%, even though their form said 30% would be withheld for non-residents and they are fully aware that I reside in Canada. Am I right that this may be a problem as I would actually owe more than 10% at tax time and ...

Thank you!

Thanks for the reply and correction (duh). I have my US citizenship from my mom, my husband is CDN only. I never end up owing any taxes to the US, but it takes a couple days of my life every year to file my US taxes and last year I got a scare with a 20,000 penalty letter for late filing which they ...

Did a bit more reading just now and realized that it may be better to withdraw the money during a year when I have a higher net income in order to ensure that I have paid enough CDN taxes to get credit for all the US taxes paid.. will have to sit down and do some math on that one.

I am a dual US/CDN citizen in my 30s. I was born in Canada, worked for ~2yrs in the US (during which I contributed to a 401k that was rolled over into a rollover IRA), and currently work and reside in Canada. I am starting to plan for renouncing my US citizenship, and am having a hard time finding o...

After writing two lengthy letters to the IRS and waiting over 3 months I finally received a letter today saying that the penalties have been removed from my account (naturally, no explanation whatsoever). So Relieved! I had made many phone calls as well but was unable to get anyone to help me, as it...

I am a dual citizen living in Canada. This past week I have received two huge penalties for failing to timely file Form 3520- the first for 10k for failing to file part II and the second for 10K+interest for failing to file parts I and III. I was shocked by this as I have always diligently filed thi...

I received a similar letter today for a $10k fine for "Failure to File Form 3520 (Part II)" It says "You failed to timely file Part II of Form 3520, or did not include complete and accurate information in Part II of Form 3520." I'm assuming this is a computer generated letter too...

I just came to the same conclusion myself after reading the post by nohairleft. That's very tricky that canada will only give you credit for the amount of tax you would owe to the US if you were not a US citizen but if you're not a US citizen you wouldn't owe any tax unless you made over 10,000 in t...

P.S. I just spent the last couple of hours reading commentary on Section 24 of the Treaty as it applies to income derived by us citizens who are residents of Canada. I now believe I have to go about it like this, although I'm very fuzzy on the details: -Determine the amount the US could tax if I wer...

.. sorry, continuing.. - I am left with cdn income of: 107,000-97,600-4,300=5100; my passive income of ~5,000; and re-sourced-by-treaty income of $4,300 - if I use separate form 1116's to exclude all of those (I'm not doing anything different on the form for the re-sourced-by-treaty than I would do ...

Hi, I'm back again a month later after not yet succeeding in getting my company to get a professional to handle this for me (I have not met their minimum $10,000 earned in the US which is based on typical Canadian-citizen-only circumstances and I'm still arguing that there should be separate policie...

Thanks for your input. I have a few added comments: 1) I started doing it this way but from what I read online Form 1116 seems to always be recommended over Form 2555, and there did not seem to be any advantage to doing two, so I thought just doing one would cut down on the paperwork. 2) I was plann...