I have dual citizenship. I never earned in the US until now (i earned in CDN, and my taxes there are done and clean).
I just started work in California, and i'm wondering where am I standing regarding the IRS.
Will it affect my earnings, and will it affect the immigration process of my wife (I need a clear tax situation with IRS for the immigration process to move forward)
thanks for the input.
DUal US / CDN citizenship and IRS tax declarations
Moderator: Mark T Serbinski CA CPA
This is usually the time when US citizens get caught not having filed their REQUIRED US tax returns.
Ever since you were a US citizen you were required to file a 1040 with IRS. Every year.
Now, tht you are going to the states, it is quite likely that IRS will begin to wonder why you never filed, and come aksing for your past returns.
You may think "well, I'm sure that -- had I done the returns -- my tax would have been zero" and you would be right.
But, for your tax to be zero you would still have had to report all income and then take various deductions/credits and exclusions. By not filing, IRS usually takes the position that you elected NOT to use these provisions.
Also, even if you had filed a return, the fact that you probably have RRSPs that you have not filed special forms for puts you in line for other fines, etc.
So, bottom line, to get out of any potentila mess, you should be filing retroactively for SIX years, following all the rules in place during that time, and correctly reporting your RRSP election.
Ever since you were a US citizen you were required to file a 1040 with IRS. Every year.
Now, tht you are going to the states, it is quite likely that IRS will begin to wonder why you never filed, and come aksing for your past returns.
You may think "well, I'm sure that -- had I done the returns -- my tax would have been zero" and you would be right.
But, for your tax to be zero you would still have had to report all income and then take various deductions/credits and exclusions. By not filing, IRS usually takes the position that you elected NOT to use these provisions.
Also, even if you had filed a return, the fact that you probably have RRSPs that you have not filed special forms for puts you in line for other fines, etc.
So, bottom line, to get out of any potentila mess, you should be filing retroactively for SIX years, following all the rules in place during that time, and correctly reporting your RRSP election.
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