The Greatest Cross border tax issues forum I've seen.
I am a Canadian resident/citizen who got a green card in 2005, although I have never lived in th US. Didn't file any US return so far though. Now, I want to get in compliance with the filing requiremtents and at the same time to relinguish my GC. I'm going to abandon my LPR status by giving I-407 and the GC to the local US consulate but I have some doubt about the the filing requirements in the US. Presumably I'd have to take a treaty-based return position under Article IV, V filing 1040NR + 8833 for the the last 5 years including 2009, right or I'm missing something? If so, should 1040NR be nil form with my name and address only and should I sign it or not?
Filling requirement for Canadaian with GC
Moderator: Mark T Serbinski CA CPA
With GC, you are supposed to file 1040, not 1040NR, regardless of where you live. Filing a 1040NR, even if you are entitled by treaty, is very harmful to your GC. However in your case, you probably don't care about this, so 1040NR and 8833 would be OK -- but only because you are giving up GC.
The fact that you got GC 4 years ago but never lived in US, calls into question whether your GC is even valid anymore, but you are taking the correct steps to renounce it. I would get into compliance by filing 2005-2008 (or 2009, if you renounce in January) before renouncing.
Of course you would sign the returns. 1040NR has sufficient spaces to write what you need, and along with 8833, there will be no doubt as to what you are legally claiming.
The fact that you got GC 4 years ago but never lived in US, calls into question whether your GC is even valid anymore, but you are taking the correct steps to renounce it. I would get into compliance by filing 2005-2008 (or 2009, if you renounce in January) before renouncing.
Of course you would sign the returns. 1040NR has sufficient spaces to write what you need, and along with 8833, there will be no doubt as to what you are legally claiming.
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
My wife was in the same situation as you; she had a GC but never actually lived in the US. An expired GC still makes you responsible for US taxes until you relinguish it -- truly taxation without representation.
We back-filed 1040 for 5 years (everything, including 8891 for her RRSP). We also filed the TDF forms. She turned in the GC to the consulate, along with form I-407. That was in 2007, and we've heard not a peep from anyone since.
If you do this, be sure to get a copy of the form from the consulate.
We back-filed 1040 for 5 years (everything, including 8891 for her RRSP). We also filed the TDF forms. She turned in the GC to the consulate, along with form I-407. That was in 2007, and we've heard not a peep from anyone since.
If you do this, be sure to get a copy of the form from the consulate.
I've known of another case where a GC holder, maintaining his GC, but filing 1040NR with treaty exemption. I'm pretty sure that, if push came to shove the CIS would confiscate the GC on the basis of not residing in US (which is the only wway one can make the treaty claim to not be resiodent after all).
But, as SJ sez, even if your GC is taken from you or is no longer valid by disuse, IRS will not accept that you are not laible for filing unless and until you get that consular note.
But, as SJ sez, even if your GC is taken from you or is no longer valid by disuse, IRS will not accept that you are not laible for filing unless and until you get that consular note.
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
Why you suggest filling before renouncing? Because they may question whether I fulfilled all my filling obligations or because they may report me to irs before I take proactive steps to file? AFAIK, I should send a copy of the my completed and stamped I-407 together with the other filling forms to irs as a proof of abandoning my LPR status. I guess relinquish the CG should come first.
I guess filling 2005-2008 only would not be sufficient although I renounce GC in December. I think I should file 2009 together with '05-'08 and better renounce it now in Dec. Leaving it for Jan would probably call for another return for 2010 if I'm not mistaken.
I guess filling 2005-2008 only would not be sufficient although I renounce GC in December. I think I should file 2009 together with '05-'08 and better renounce it now in Dec. Leaving it for Jan would probably call for another return for 2010 if I'm not mistaken.
Six of one, my thought is that having you notify IRS first is better than State department.
File 2005-8 now , renounce, and then file 2009 with the form in the new year.
File 2005-8 now , renounce, and then file 2009 with the form in the new year.
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
Reason to be up-to-date with IRS is tha there will be a determination made on whether you are subject tio expat tax, and that can only be by looking at your returns. If they have no returns, tha they will simply dig deeper. Best to ghave the returns in the system. They are already 4 years late -- so you are not arguing from a position of strength.
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
I agree with nelsona. The risk of not filing first is that you're not in tax obligation compliance. Technically, you're in violation of all sorts of stuff, including penalties. If you file, and owe nothing, then nothing is lost.
My wife filed 1040 in 2007 (for 2006). The following year, she filed a "dual status" return 1040NR/1040 for 2007 with a copy of the I-407. We filed the FBAR as well.
Just because you've given up the GC does not mean the IRS cannot claim you owe them something for the years you held the GC. The statute of limitations generally ends three years after filing but is unlimited if you never file.
My wife filed 1040 in 2007 (for 2006). The following year, she filed a "dual status" return 1040NR/1040 for 2007 with a copy of the I-407. We filed the FBAR as well.
Just because you've given up the GC does not mean the IRS cannot claim you owe them something for the years you held the GC. The statute of limitations generally ends three years after filing but is unlimited if you never file.
Suppose that I take a US-Can treaty-based position and file 1040NR along with 8833. I hold 100% in Canadian corporation since 2008 and so this position would exclude business profits from double taxation. I will have to file 5471 and T F 90-22.1. However I hold 100% in foreign corporation since 2005 in a country that did not have treaty with USA before 2007, then a treaty was signed in 2007.
I would have to file 5471 and TD F 90-22.1 for the foreign corporation.
Does this foreign corp have tax liabilities in US for the years 2005-2007 and then 2008? Does the US-Can treaty based position excludes the business profits for this foreign corporation?
I would have to file 5471 and TD F 90-22.1 for the foreign corporation.
Does this foreign corp have tax liabilities in US for the years 2005-2007 and then 2008? Does the US-Can treaty based position excludes the business profits for this foreign corporation?
If you are taking the treaty position to avoid having to file 1040, why bother filing any other forms that are not required for non-residents?
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
Becasue I am taking a position that I am not resident for tax purposes but this does not save me from all other obligations for 'U.S. person: A citizen or resident of the United States' as I am a GC holder still until I get I-407 paper signed.
Do you suggest that reporting requirement as per 5471 and TD F 90-22.1 are not relevent to my case? Thanks.
Do you suggest that reporting requirement as per 5471 and TD F 90-22.1 are not relevent to my case? Thanks.
The IRS p591 says that "If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U.S. income tax. For purposes other than figuring your tax, you will be treated as a U.S. resident.".
The last sentence from the citation above makes me think that, although I take treaty position to declare myself as a non-resident, I might still be required to file 5471 and TD F 90-22.1 forms.
Nelsona, I really need your input on this one to clear up my doubt as to whether or not I am required to file these 2 forms as a GC holder taking treaty position and filling 1045NT along with 8833. Appreciate your time.
The last sentence from the citation above makes me think that, although I take treaty position to declare myself as a non-resident, I might still be required to file 5471 and TD F 90-22.1 forms.
Nelsona, I really need your input on this one to clear up my doubt as to whether or not I am required to file these 2 forms as a GC holder taking treaty position and filling 1045NT along with 8833. Appreciate your time.