I apologize for the lengthy explanation, but my taxes have been messed up enough and I just want to know if I am on the right track. I am a Canadian Citizen on TN and this is my situation.
2004, Dual Status year
• Hired a Canadian CMA that purported to be “Enrolled to practice before the Internal Revenue Serviceâ€. This CMA prepared both my Canadian and U.S. tax returns.
• Filed T1 for Canadian sourced income
• Filed NR1040 with Closer Connection Statement to Canada, for U.S. sourced income.
• CMA did NOT submit Schedule B, did not file any 8891’s for my RRSP’s, and did not file a TD F90-22.1.
2005
• Self Prepared
• No Canadian sourced income.
• Contributed to RRSP’s and filed a T1 to carry forward my RRSP Basis.
• Filed 1040
• Did not file Schedule B-Part III, did not file 8891’s for my RRSP’s, and did not file a TD F90-22.1.
2006
• Suspecting that 2005 was not prepared correctly, I hired a U.S. CPA that claimed experience in both Canadian and U.S. tax returns.
• Earned less than $100 in Canadian sourced interest income, Non-Resident Tax was withheld.
• Filed T1 to carry forward my RRSP Basis.
• CPA prepared 1040X and amended 2005 U.S. return and attached missing 8891’s for RRSP’s; however, did not submit Schedule B or TD F90-22.1 for 2005.
• Filed 1040 for 2006, this time submitting Schedule B – Part III completed, 8891’s for RRSP’s, and filed TD F90-22.1 for Canadian Bank accounts only (did not include the RRSP’s).
2007
• Earned less than $100 in Canadian sourced interest income, Non-Resident Tax withheld.
• Filed T1 to carry forward my RRSP Basis.
• Filed 1040 with Schedule B – Part III completed, submitted 8891’s for RRSP’s , and filed TD F90-22.1 for Canadian Bank accounts, including RRSP’s.
Here is how I think I should straighten out this mess:
1. Amend 2004 and submit Schedule B, 8891’s for RRSP’s, and file the TD F90-22.1 including Bank Accounts and RRPS’s.
2. Amend 2005 again, this time submitting Schedule B – Part III, and file a TD F90-22.1.
3. For 2006, file a new TD F90-22.1, this time include the missing RRSP’s, as well as the previously reported Bank Accounts.
Opinions and suggestions?
Thanks
Al
TD F 90-22.1, F8891 and Dual Status Year
Moderator: Mark T Serbinski CA CPA
Pretty much every tax year was done wrong in both US and canada.
Canada all years: where was your departure return? On yoyr T1, did you report all world income (that is what a T1 is for). What made you think that you needed to file a T1 to keep your RRSP balance?
For US 2004: You couldn't file closer connection if you moved to US. Closer connection is specifically for those who do NOT move to US but spend between 140 and 180 days in US. 8891 and TD were require, and you should have filed as dual status or full year with a 1040. You filed as anon-resident.
2005: missing 8891 and TD
2006: RRSPs should go on TD form
2007: finally gett US tax right. Wrong to file T1.
I would move on from here. Forget amending 2004, and for other years there is no need to submit a new TD, its simply too late.
and STOP filing T1!!! Your RRSP balance is in their system. Filing a T1 by definition means you live in canada and should have reported world income.
Final thought: You've been hanging around these websites for a long time now; how come you were never able to get this straight!?
Canada all years: where was your departure return? On yoyr T1, did you report all world income (that is what a T1 is for). What made you think that you needed to file a T1 to keep your RRSP balance?
For US 2004: You couldn't file closer connection if you moved to US. Closer connection is specifically for those who do NOT move to US but spend between 140 and 180 days in US. 8891 and TD were require, and you should have filed as dual status or full year with a 1040. You filed as anon-resident.
2005: missing 8891 and TD
2006: RRSPs should go on TD form
2007: finally gett US tax right. Wrong to file T1.
I would move on from here. Forget amending 2004, and for other years there is no need to submit a new TD, its simply too late.
and STOP filing T1!!! Your RRSP balance is in their system. Filing a T1 by definition means you live in canada and should have reported world income.
Final thought: You've been hanging around these websites for a long time now; how come you were never able to get this straight!?
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
There are, however, differing opinions on the need to backfile the TDF forms. See this site: http://mail.abanet.org/scripts/wa.exe?A ... S=&P=31144
Also, David Ingram maintains backfiling is needed. See here: http://www.centa.com/CEN-TAPEDE/centape ... 03954.html. Under the "RELIEF" heading, he writes, "In my opinion, you should file the TDF 90-22.1 forms retroactively for six years to the Department of the Treasury." He also mentions it here: http://www.centa.com/CEN-TAPEDE/archive ... 03396.html. Hard to fine -- he does ramble quite a bit....
Also, David Ingram maintains backfiling is needed. See here: http://www.centa.com/CEN-TAPEDE/centape ... 03954.html. Under the "RELIEF" heading, he writes, "In my opinion, you should file the TDF 90-22.1 forms retroactively for six years to the Department of the Treasury." He also mentions it here: http://www.centa.com/CEN-TAPEDE/archive ... 03396.html. Hard to fine -- he does ramble quite a bit....
I am aware of Ingram's position, which is, as he says, an opinion.
Unlike 1040, however, there really is no provision to back-file the TD form.
Unlike 1040, however, there really is no provision to back-file the TD form.
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
The procedures around the TDF form are certainly less clear than IRS forms. There really should be no need for an "opinion." For example, there are no clear instructions on late or backfiling, no good Web information, no phone contact information (or instructions on how to confirm receipt of the form, or even what consitututes such receipt), joint filing instructions, or a host of other issues. To what degree IRS rules apply is unclear. Information on the statute of limitations seems to be available only through second-hand legal references. It's a weird form.
Thank you Nelson for your reply.
I would have responded sooner, but it appears as though I have been banned from posting to this site from my pc since my last post. I wonder how that happened? In any event, there are ways around that. Let's move on to the subject at hand.
In 2004 I naively trusted that a “Professional†who specifically specialized in Canadian and U.S. tax preparation would actually have a clue about they are doing. They are supposed to be experts in their field!!! Unfortunately for me, they can make grievous errors and walk away without any recourse, but the burden of their incompetence still falls upon me.
It was not until 2006 that I began to understand the errors have been committed, and again I foolishly sought out Professional assistance to resolve my tax situation, but clearly incompetence abounds on both sides of the border.
As you have pointed out, the 2007 Tax year I finally “got it right†by abandoning my trust in Professionals and doing it myself. The irony is that I will probably have to trust another "Professional", a tax lawyer. to guide me through Voluntary Disclosure, and hope that they get it right.
To answer your question regarding my departure return. 2004 was my departure return and I did file my deemed disposition if that is the point of your question? Maybe I am just being naive again, but according to the emigrants guide, you are to file using the T1. http://www.cra-arc.gc.ca/tax/nonresiden ... g-e.html#e
Now, I am not pleading that my situation is someone else’s fault. I have made mistakes in procedure and judgement, and I am taking responsibility to correct them. I doubt that I am the first person to have ever misplaced trust in a Professional, and I doubt I will be the last.
Regarding my filing of my T1’s when I have no Canadian taxable liability, although not required, it also not wrong to do so. I have confirmed this with more than one agent at the International Tax Office. I file so that I will have a contiguous record of my returns, and that where will be no question to why there are gaps in my Canadian returns. This is purely a personal preference and not a legal obligation.
Finally, thank you for your always insightful replies. It is true that I occasionally participate in the same Immigration related forums as you do, and I clearly acknowledge that you possess a wealth of knowledge on the posted subjects; however your last comment is uncalled for. The purpose of this forum is to help people in similar circumstances and not to ridicule them.
Al
I would have responded sooner, but it appears as though I have been banned from posting to this site from my pc since my last post. I wonder how that happened? In any event, there are ways around that. Let's move on to the subject at hand.
In 2004 I naively trusted that a “Professional†who specifically specialized in Canadian and U.S. tax preparation would actually have a clue about they are doing. They are supposed to be experts in their field!!! Unfortunately for me, they can make grievous errors and walk away without any recourse, but the burden of their incompetence still falls upon me.
It was not until 2006 that I began to understand the errors have been committed, and again I foolishly sought out Professional assistance to resolve my tax situation, but clearly incompetence abounds on both sides of the border.
As you have pointed out, the 2007 Tax year I finally “got it right†by abandoning my trust in Professionals and doing it myself. The irony is that I will probably have to trust another "Professional", a tax lawyer. to guide me through Voluntary Disclosure, and hope that they get it right.
To answer your question regarding my departure return. 2004 was my departure return and I did file my deemed disposition if that is the point of your question? Maybe I am just being naive again, but according to the emigrants guide, you are to file using the T1. http://www.cra-arc.gc.ca/tax/nonresiden ... g-e.html#e
Now, I am not pleading that my situation is someone else’s fault. I have made mistakes in procedure and judgement, and I am taking responsibility to correct them. I doubt that I am the first person to have ever misplaced trust in a Professional, and I doubt I will be the last.
Regarding my filing of my T1’s when I have no Canadian taxable liability, although not required, it also not wrong to do so. I have confirmed this with more than one agent at the International Tax Office. I file so that I will have a contiguous record of my returns, and that where will be no question to why there are gaps in my Canadian returns. This is purely a personal preference and not a legal obligation.
Finally, thank you for your always insightful replies. It is true that I occasionally participate in the same Immigration related forums as you do, and I clearly acknowledge that you possess a wealth of knowledge on the posted subjects; however your last comment is uncalled for. The purpose of this forum is to help people in similar circumstances and not to ridicule them.
Al
As long as you filed a non-resident return, you did nothing illegal, but you were not correct to file. Your bank interst had withholding, so I trust you did not report interest on those 'T1's'
The tax office telephlunkies are almost always wrong. Contiguous .... bull.
The tax office telephlunkies are almost always wrong. Contiguous .... bull.
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
... and your initial post, quite frankly, come across like someone who just discovered the internet, which I know is not your case.
So that is what it is so shocking that you would have flailed along for all these years.
If my shock came across as ridicule, that was not my intention.
So that is what it is so shocking that you would have flailed along for all these years.
If my shock came across as ridicule, that was not my intention.
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
You are correct, I did file my T1 as a non-resident and I did not report the interest income; and according to my assessment, CCRA does not have any issue with
"your initial post, quite frankly, come across like someone who just discovered the internet" You're right Nelson, no ridicule going on here!
"your initial post, quite frankly, come across like someone who just discovered the internet" You're right Nelson, no ridicule going on here!
"voluntary disclosure' is overkill in your case. any penny you spend (other than on printing your return) is a waste.
I've given you my opinion, the rest is up to you.
I've given you my opinion, the rest is up to you.
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