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.
It looks like Canadians who have their own Canadian corporations must file Form 5471.
It is very complex, and there are big penalties for not filing.
It references treaty's exceptions that are not very clear.
Is anyone aware of this form?
MikeC wrote:It looks like Canadians who have their own Canadian corporations must file Form 5471.
It is very complex, and there are big penalties for not filing.
It references treaty's exceptions that are not very clear.
Is anyone aware of this form?
Yes, it is a very complicated form. As nelson says, there are no Treaty exemptions. The form requires knowledge of the CFC, PFIC rules and how to calculate "subpart F" income. The form is required for US tax residents (i.e. 1040 filers) who meet the criteria set out in the instructions.
MikeC wrote:Thanks everyone. Carson, "1040" - no mistake?
I was being generic. It is possible for a non US citizen, part year US tax resident to file a 1040NR, i.e. in a dual status year. If that applies to you, then you might have to file the 5471 as well.
