Terrified and don't know where to start

Daffyd · Post by **Daffyd** » Mon Jun 20, 2011 9:42 pm

My spouse and I were Canadians who moved to the US many years ago, but moved back to Canada in 2006. We decided to move back to the US in 2009, but while we were in Canada, an accountant convinced us to set up a corporation so my spouse could work as a self-employed person.

While we were in Canada, I didn't work, so we didn't file taxes for me, and our accountant quit, and we couldn't figure out how to file taxes as a corporation, so we put it off... We finally got things straightened out with Revenue Canada and were going to work on our US taxes now, and are realizing that we could be in major trouble with the IRS...

We sold a house in the US, bought a house in Canada while we were there, and then sold it and bought another one here when we moved back...

I'm terrified, and don't know where to start... I've been the only one working since we moved back to the US, and I'm seeing things about $10,000 fines and jail time... We need to figure things out, but I'm terrified after hearing about all this.

HELP

tsanaha · Post by **tsanaha** » Mon Jun 20, 2011 9:58 pm

Are you US citizen, and if so, since when ?

If you are not US citizen, not green card holders, the only trouble you have is from 2009 when you moved back to US.

If you have been US citizen since 2006, then you may have some problem -- if you never file US return/FBAR.

No need to worry about jail for now and if you are not under investigation, you still have time to come forward to OVDI. Civil penalty is likely if you owe IRS tax.

Daffyd · Post by **Daffyd** » Mon Jun 20, 2011 10:17 pm

We became citizens in 2006...

Is this something that could be dealt with through Serbinski Accounting? Or would it have to be some kind of lawyer?

tsanaha · Post by **tsanaha** » Mon Jun 20, 2011 10:39 pm

Do homework first to find out how much (roughly) your penalty is. The major problem for under report is so called offshore earning (even in fact you live offshore, but as a US citizen, you have to report your global income), and FBAR penalty can be very harsh... if you can do all the amend yourself, and if it is not a lot money, it would be wise to do it yourself... otherwise, you should contact an accountant.

Some lawyers can give you a suggestion on either do it via quiet disclosure, or traditional VD or OVDI..

I am sure this accouting firm is known for Canada US tax..

I am not a pro, as matter of fact, I, myself am in this trouble right now.. I only share my two cents on how to solve this problem..

It is never too late to make it right..