CAD residing, but US/CAD dual citizen, inquiry about online USA business tax info.

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Vancouvergirl
Posts: 1
Joined: Sat Nov 06, 2021 7:19 pm

CAD residing, but US/CAD dual citizen, inquiry about online USA business tax info.

Post by Vancouvergirl »

Hi, I have a friend who is older and they are not super great on computers so I am asking questions on their behalf. This person is a CAD/USA citizen. USA born, but CAD raised and worked in CAD.

In the past as an adult, they lived in the USA 10 years, but as part of a couple, they weren't working.

So they've never filed USA taxes. Therefore they've never had to use their SSN to file taxes.

Before they returned to CAD unexpectedly, the USA born/CAD raised dual citizen, set up and online business USA side.

However, the business was in it's first year, and they relocated to CAD before having to file their first year of taxes, USA side.

They've now decided to keep the USA business online, because the consumer USA market is greater. So want to file taxes USA side. From Canada.

QUESTIONS:

1. If they run their USA online business from CAD, can they still file taxes USA side?

- They still have USA address and ID and accounts etc. (That's what they would like to do. File USA side.)

2. Will their SSN get flagged or investigated in the USA, as they've never worked USA side before, even having lived there, therefore never filed USA taxes before?

- I ask as it means a prior dormant inactive SSN, is suddenly active.

3. Does the CRA and IRS talk to each other?

- Meaning, will the IRS auto check in CAD, to see if a person filing business tax in the USA, is a dual citizen of Canada or another country?

4. Looking at what would be the first set of tax records to file, my friend's small online businesss as it turns out, doesn't even make enough for CRA to want taxes on it anyway. In CAD business, sales under 30k is not taxable. And their USA online business makes less than 30k. But again, the market for their product is stronger USA side, reguardless of who much they make.

5. So, since the USA IRS requires business tax, even if the business makes under 30k, my friend wants to do their due diligence and pay the USA tax side of things. They want to keep that side up properly.

Thankyou for your assistance.

VG
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: CAD residing, but US/CAD dual citizen, inquiry about online USA business tax info.

Post by nelsona »

Your old friend will need to see a cross-border accountant.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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