Canadian in US and tax question

Ottawa000 · Post by **Ottawa000** » Wed Oct 09, 2013 2:25 pm

I'll try to keep it simple.
I just filed exit tax in Canada which i should have 5 years ago when i left canada.

I have a bank account in Canada which has paid me 400$ a year for the past 5 years it seems like i was suppose to pay taxes on it in the US which i didn't

I wanted to transfer that money to the US but now it seems like i found out i was suppose to pay taxes on that amount in the US.
Am i looking at penalties if so how much?
Can i just transfer that amount like a wire transfer?
Would their be any issues?
Please let me know
Thanks

nelsona · Post by **nelsona** » Thu Oct 10, 2013 5:39 am

you can transfer the money any way you want. That doesn't mean anything tax-wise. You have underreported your taxes, ust file the last 3 years amended and pay tax interst and penalty. You also should have been reporting the existence of the account annually on a FBAR form. that has serious penalties, so you need to fix this.

Same for any RRSPs that you have,

Ottawa000 · Post by **Ottawa000** » Thu Oct 10, 2013 11:49 am

Thanks Nelson can you please tell me the following.

1) do you know how much the penalties are?
2) Is it 3 years or 6 years back filing that i need to do?

Thanks for your answers

nelsona · Post by **nelsona** » Thu Oct 10, 2013 12:28 pm

For taxes, 3 years, for FBAR 6 years, for RRSP 6 years.

I'm not going to calculate what you owe.

Ottawa000 · Post by **Ottawa000** » Thu Oct 10, 2013 1:19 pm

Really doesn't matter need to pay the piper for the mistakes made on my end.

Thank s for telling me what needs to be done