Form TD etc. for Detroit - Requirements

marge · Post by **marge** » Mon May 09, 2005 4:44 pm

I am an American/Canadian citizen and permanent resident in Canada. I work for my husband and have signing authority on the business and holding company. I don't hold any interest (%) in either, because I had read the IRS could get involved if I did. Both are solely in my husband's name. But do I have to put those accounts onto the Treasury form? If so, my husband will (rightly) have a bird. And you said we have to include the credit cards also? Can you please explain what do you mean? We pay them off every month, but at Dec. 31st they would show an amount owing, i.e. a negative balance, if anything. Is that what we'd put? ex.: (2,186.23$) Would they really need to know that?

nelsona · Post by **nelsona** » Mon May 09, 2005 6:08 pm

Who is the "you" you are talking about/to?

This is a forum not an interview session.

Some foreigners have taken to putting large DEPOSITS on their Credit cards, in effect creating a bank account from which they can draw. IRS would be intersted in knowing this.

If you have not been using your Credit cards in this manner, I would not report it.

As to the signing authority, this may be indeed meet the criteria of requiring to be reported, I'll let you come to your own conclusion.

However, merely because you report the account to the IRS means nothing in terms of any IRS involvement, so hubby shouldn't be worried.

nelsona non grata... and non pro

sajith · Post by **sajith** » Tue May 10, 2005 9:56 am

I also have been keeping 2 credit cards in Canada. I wonder there is a requirement to report them in TD form.

marge · Post by **marge** » Tue May 10, 2005 11:10 am

Hi, Nelsona, Sorry, I had read the information somewhere on the site, and had no idea who had said it, or where I had seen it.[:D]

Thanks for the clarification about the credit cards. I had no idea some people did that.

About the Treasury form, every year, I've just been doing what I did the year before, since the form hadn't changed since July 2000. Thanks to you, I have re-read the instructions. Thank you very much for sending me back for a second look.

About this part--

"merely because you report the account to the IRS means nothing in terms of any IRS involvement"

--Do you mean the IRS has no access to this information? They could never use this information if they decide someone had made a mistake on their tax returns?

nelsona · Post by **nelsona** » Tue May 10, 2005 12:04 pm

Ther TD form's primary goal is to combat international money laundering.

If hubby's accounting practices and records are such that there is no doubt that YOU are not hiding money in the firm, and you otherwise are not engaged in any illegal financial activities, there is no harm in reporting.

If the IRS wants to come after you, you will not be able to hide something simply by not putting it on a form.

However, the simple act of not reporting an account in which you (a US 'person') have a financial interest, even if no other illegalities are involved, is punishable by law.

I think you can come to your own decision.

nelsona non grata... and non pro

marge · Post by **marge** » Tue May 10, 2005 1:19 pm

Thanks. You sure do know how to scare a person...

It seems as if there’s no end to what I have to know. I had read the 1040 for overseas filers from cover to cover, but still hadn’t understood this. I guess it seems clear to you, but...

Does having a "financial interest" in the company just mean ownership, being a director or officer, or having voting rights? This is what, as an lay person, I would assume "has legal title" refers to (found in Financial Interest, (1). Or does it include a case where the company owes me salary?

Thanks a lot for your help.

Carson · Post by **Carson** » Tue May 10, 2005 1:28 pm

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by marge

Thanks. You sure do know how to scare a person...

It seems as if there’s no end to what I have to know. I had read the 1040 for overseas filers from cover to cover, but still hadn’t understood this. I guess it seems clear to you, but...

Does having a "financial interest" in the company just mean ownership, being a director or officer, or having voting rights? This is what, as an lay person, I would assume "has legal title" refers to (found in Financial Interest, (1). Or does it include a case where the company owes me salary?

Thanks a lot for your help.
<hr height="1" noshade id="quote"></blockquote id="quote">

Check page 3 of the TDF 90-22.1 instructions for definitions. It's fairly clear.

http://www.irs.gov/pub/irs-pdf/f9022-1.pdf

Carson

marge · Post by **marge** » Tue May 10, 2005 2:08 pm

Hello, Carson. I did consult the instructions online, and that's what I was quoting from. As a non-accountant, non-lawyer, I can only give an educated guess as to what "has legal title" means, and I was hoping for clarification...

sajith · Post by **sajith** » Tue May 17, 2005 9:43 am

In a different thread you have stated, I Quote:
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I'm an American with Canadian citizenship and a permanent resident of Canada since 1966. In 1995 I learned I should be filing US returns, and did so for 7 years back, plus the form for Detroit. I did the returns myself, with help from the IRS consultants who gave seminars for US citizens here.

--------------------------------------------------------------------

How did you file the TD form for Detroit for the past years? I don't see any provision to go back and file for the past years on the form or instructions. Did they contact you after filing for the past years for any inquiries? I am concern about them coming back and opening a can of worms. I have not filed that form for 2001 - 2003. I only had RRSPs above $10,000. Did the IRS consultant tell you it is OK to file that form for past years?

Also I am looking for the IRS Pensalvania phone number if you happen to have it and give it to me I would appraciate it very much.

I would really appreciate If you share your experiance with other on this.

marge · Post by **marge** » Fri May 27, 2005 4:57 pm

Hi, The number I called at the Philadelphia Tax Centre was 1-215-516-2000. The number was given to us by the IRS rep who came here. She told us the best time to call was in the morning. In April, I didn't have to wait too long. You can call from 6am to 10pm Pennsylvania time. It's not a toll-free number.

As to the rest, I don't know if what I did in 1995 applies to today. They keep changing the rules. I wouldn't presume to advise anyone, anyway--I know next to nothing! Good luck.

sajith · Post by **sajith** » Fri May 27, 2005 10:35 pm

Thank you so much merge for your reply. I appreciate giving me the phone number. I have been looking for that for some time. I am also both American and a Canadian living in the US. I have to deal with RRSP headache.

Thanks so much again.

Tania · Post by **Tania** » Wed Jun 08, 2005 2:25 pm

I have to send the TD form to department of treasury soon. Is it OK if I send it on certified mail with return receipt? I want to have a record of them receiving it.

Can I also send 1040-X with RP 2002-23 on certified mail with return receipt to district IRS office?

nelsona · Post by **nelsona** » Wed Jun 08, 2005 2:29 pm

I would consider this overkill, especially for the TD form.

nelsona non grata... and non pro

Tania · Post by **Tania** » Wed Jun 08, 2005 2:56 pm

Then how do I prove that I sent it, if they ask me later? specially US agencies never send a reply unlike Revenue Canada send assessment etc.

nelsona · Post by **nelsona** » Wed Jun 08, 2005 3:22 pm

I've never sent anything to IRS other than in Regular mail.

If you want to be sure that TD form was received, leave of your birth date. Then they will send back a form asking for it.[;)]

Seriously, I wouldn't waste the $4. Just keep a copy of the original in your records, and if they ask for it say you sent it and here's a copy.

nelsona non grata... and non pro