Mother is Emigrating from Canada to USA ....

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You do not see what the issue is.

EXACTLY!!! Find someone who does. How often do you need to be told. You screwed yourself, now don't screw up mum's nest egg too.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
rlb
Posts: 139
Joined: Thu Feb 17, 2011 8:51 pm
Location: NB, Canada

Post by rlb »

Follow nelsona's advice.

"Is anyone implying that she has to report income in a Canadian company that she is a shareholder of, even though she has not received any income distribution?"

Absolutely, if the Canadian company is a "Controlled Foreign Corporation". And it certainly will be if either her brother or sister is a "U.S. Person" (citizen or green card holder). The situation is way, way beyond forum help, and the stakes are very large, so you need good professionals right now!
marco256
Posts: 25
Joined: Fri Oct 21, 2011 2:44 pm

Post by marco256 »

"EXACTLY!!! Find someone who does. How often do you need to be told. You screwed yourself, now don't screw up mum's nest egg too."

1. I haven't paid the departure tax it's only differed, so I am not out of pocket.
2. I haven't wound up my company, so there is no deemed dividend to pay. I don't need funds, so I can still use Canadian company to earn income and if income is required, I could even move back to Canada where my nest egg has grown to a full blown thanks giving turkey ......

so I don't know why you're all worked up. As regards USA, I have no IRS issues ... isn't that correct.

You still haven't shown why there is an issue with past IRS filings concerning my mother. You're are implying that there is an IRS requirement for US Canadian non-residents to report undistributed income earned in an Canadian company .... is that what you are stating?
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I'm not ststing anything to you anymore except to get you mom to a pro.

Just swallow your pride and get help for mommy. She will still think of you as a good son -- maybe even more!
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
rlb
Posts: 139
Joined: Thu Feb 17, 2011 8:51 pm
Location: NB, Canada

Post by rlb »

"You still haven't shown why there is an issue with past IRS filings concerning my mother. You're are implying that there is an IRS requirement for US Canadian non-residents to report undistributed income earned in an Canadian company .... is that what you are stating?"

Yes.
marco256
Posts: 25
Joined: Fri Oct 21, 2011 2:44 pm

Post by marco256 »

You still haven't shown why there is an issue with past IRS filings concerning my mother. You're are implying that there is an IRS requirement for US Canadian non-residents to report undistributed income earned in an Canadian company ....

Is the question reporting income or disclosing income. In Canada you have to report foreign holdings ... which my mother does for a home in Florida. As regards US filings, her holdings in Canadian company are disclosed, but since there is no distribution of income, she has no US tax liability for tax on income not distributed .....
madhoa
Posts: 29
Joined: Sun Aug 21, 2011 2:50 pm

Post by madhoa »

'You're are implying that there is an IRS requirement for US Canadian non-residents to report undistributed income earned in an Canadian company '

He's not implying it, he's saying it and he's 100% correct. A Controlled Foreign Corporation has very special rules under US tax laws about disbursing income and there are a number of IRS filing requirements, with stiff penalties.

Don't try and do this on the cheap on the internet, hire a professional.
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