Interest Income Reporting Issue

[penjoy777]

My wife and I are Canadian citizen in US on H1 and H4 status. We had filed our departure return (2007) and cut our ties from Canada. My wife and I still hold bank accounts (mostly RRSP and RESP) in Canada. My wife however does have a savings account which generates interest income and has always been reported on the US return. Recently my wife received a letter from CRA indicating that she has not been filing return for the years 2008 and 2009. I suspect this is due to the fact that the bank is still sending T5 to us.
Am I doing something wrong while reporting the interest income? How do I deal with CRA when I call them? Talking to the bank, it seems they indicate to close the account! Any help/advise would be appreciated.

Thanks

[nelsona]

Did CRA accept your departure return (ie. did you put a departure date, prorate deductinons, pay deemed disposition tax, etc, and CRA accepted)?.

You are also required to inform your bank, RRSP etc that you are resident of US, but this oversight will not make you taxable in canada.

Interest is no longer taxable in canada for non-residents, since 2008, so you owe nothing to CRA on this. Did you have othr income?

You should be allowed to have a Cdn bank account while living in US, most of us do. Your RRSP however needs to be moved to a broker which will accept your resident status (TD Waterhouse discount brokerage is one, there are more costly other boutique brokers out there).

Write CRA informing them that you have filed correctly in 2007.

[penjoy777]

Thanks, nelsona!
Yes, I did file everything correctly. I had hired professional (same who run the forum) services for that year. I had also received a letter from CRA indicating that no CTB payments will be made for my daughter since we are no longer residents.
I will write a letter and maybe send copies of few pages of return. Should that be ok?

[nelsona]

yes.

And get all your accounts straightened out so that no one thinks you live in canada.