Serbinski Accounting Firms

Thank you!

Thanks Nelsona, but I thought we just agreed no T1 Adjustment was possible after ten years?

Thanks JGCA but according to the CRA they do not accept T1 adjustments past ten calendar years: How to change your return (http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/chngrtrn-eng.html): If you need to make a change to any return you have sent us, do not file another return for that year. Wait un...

It's true.

Sorry, forgot to mention I had U.S. W2 as well as Canadian income in 2002.

Hello, I recently filed (in 2012) a 10 year old T1 return from 2002 in order to get the GST rebate. After I filed, however, I realized a left off some T4 income I should have included. How do I now make an adjustment to this return if the 10 calendar year limit for filing the T1 Adjustment Request h...

Thanks Nelson,

So what your saying is that any Canadian citizen or 1040NR filer living abroad who files the 4868 extension after the April 17, 2007, deadline would be denied any extension?

Do Canadian citizens and U.S. non-residents living in Canada qualify for the automatic 2 month IRS Out of Country extension? Form 4868 seems to say it applies only to U.S. citizens and 'residents' living abroad.

Thanks.

Had an IRA redemption plus some US Unemployment Insurance in 2006.

Hello! Am filling in the section entitled - Other Information on the last page of the 1040NR for the first time. I left the US in 2005 (was working on TN) and came back for a couple of days vacation in 2006. When I do a 1040NR for 2006 is the Other Information section filled in from the perspective ...

A while back it was fairly routine to get a TN without a passport. Has any one been successful recently?

Thanks.

Hello! On Form T2209 - Federal Foreign Tax Credits it appears that you can carryforward or carryback unused foreign "Business Income" tax credits, but is it also possible to carryforward/back unused "Non-business" foreign tax credits? The only carryforward/back provision I see is...

Can a recruiting/staffing agency circumvent the IRS as well as the various employment withholding requirements for employees by:

1. Hiring you as an "independent contractor",
2. Have you the "independent contractor" hire your own employee (which is really yourself),
3. Include a clause in you employment contract stating the recruiting/staffing agency is harmless from all claims for unemployment compensation or inadequate state and federal withholding that could arise if you're mis-classified as an employee vs. an independent contractor by the IRS because it is the contractor's (ie. yourself's) responsibility?

For the record, here's the relevant sections of my Employment Contract:

"INDEPENDENT CONTRACTOR AGREEMENT"

This Agreement is made this XX day of June 2006, between ABC Company hereinafter called the “Employerâ€￾ and WiseGuy, hereinafter called the “Contractorâ€￾.

WHEREAS, ABC COMPANY desires to enter into an Independent Contractor Agreement with Contractor whereby Contractor will supply a skilled individual to be designated herein to perform professional services on a temporary basis as work is available and Contractor will supply the individual for the assignments designed by ABC COMPANY;

NOW THEREFORE, for and in consideration of the mutual promises of the parties contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

1. Contractor agrees to provide the services of WiseGuy, a skilled individual (hereinafter “Contractor’s Employeeâ€￾), to meet the needs of professional services. ABC COMPANY’s customer will control the assignment length, the start date for such assignment, and deliverables with ABC COMPANY.

2. ABC COMPANY represents that the initial assignment for Contractor’s Employee will be with XYZ Company, a customer of ABC COMPANY.

3. The agreement between ABC COMPANY and Contractor is effective XXX 2006. Length of assignment is based on “Customer Estimationâ€￾ and may be reduced or extended at the discretion of the Customer. However, the terms of this agreement are subject to re-negotiation for new assignments, extensions, and revisions to an existing assignment. A verbal description of new and proposed revised assignments to include the scope of work, duration, and work location (as a minimum) will be discussed with the employee. Either party has the right to terminate with a 2-week written notice.

4. The Contractor agrees to provide weekly invoices itemizing labor and travel expense. A customer approved weekly timesheet and expense voucher (if applicable) needs to accompany the invoice sent to ABC COMPANY.

5. ABC COMPANY has agreed to pay Contractor at the basic rate of $XXX per hour payable in accordance with ABC COMPANY’s regularly scheduled pay period. Overtime, if applicable, is paid at the rate of $YYY per hour, for time worked over 40 hours in one week. Pay periods begin on Monday and extend through the following Sunday. If applicable, per diem will be paid at the rate of $XXX per full week as negotiated with the Contractor.

6. Contractor agrees to be solely responsible for all state, federal, and foreign withholding, and/or self-employment taxes for its employee. Contractor agrees to hold ABC COMPANY harmless from any and all claims for unemployment compensation or inadequate state and federal withholding which may be assessed against ABC COMPANY for any reason whatsoever.

Assuming I am mis-classified as a 1099 instead of a W-2, is Clause #6 above enough to get the Company off the hook for any potential fines and penalties?

Thanks,

CK

Thanks Nelson. I was researching the whole 1099 vs W2 issue and came across this checklist (it appears the employee vs. independent contractor classification is not that straight forward and a lot of companies are (mis)using it in response to meeting budget constraints). Some of the companies receiv...

What's considered the best corporate structure (income tax wise) for a Canadian resident performing personal services in the U.S.: 1. Canadian corporation doing business in U.S. 2. U.S. personal services corporation (C corporation?) 3. Self-employed Canadian working in U.S. Which of 1, 2, or 3 would...