the highest aggregate balance of the year

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 5:59 am

sorry, i did not file extension, so i do not know what is needed. the extension of 90 days is new to the program likely due to many request. i would suggest you wait to get back from pre-approval from CI, and then ask for extension and at the same time, you should just hurry up to prepare your returns.

louisd · Post by **louisd** » Thu Jul 14, 2011 6:24 am

Thanks my returns will be ready next week. But the problem is I have to wait till I hear back from them about the ovdi letter before sending the whole package to Austin. Doesn't seem like there's enough time to send them the letter, get a response back and then send the package.

Thanks for your help.

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 7:06 am

your ovid pre-approval will only take around 10 days or less. so you should have enough time.

however, it deos not hurt if you do both at the same time.. just make sure to have the letter that you sent to CI included when you file your return Austin.

louisd · Post by **louisd** » Thu Jul 14, 2011 7:36 am

Thanks.

When you say do both you mean the letter and the complete package for Austin?

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 7:41 am

yes, i mean that you are so concerned about deadline of Aug 31, 2011 for complete pacakge.

so you send a letter to CI, at the same time ask for extension

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 7:43 am

by the way,

if you ask for extension, you are required to fill some froms (such as waive statute limitation for IRS to collect your tax etc)

docs can be downloaded here
http://www.irs.gov/newsroom/article/0,, ... 84,00.html

louisd · Post by **louisd** » Thu Jul 14, 2011 8:34 am

I have almost everything ready anyway. So I'll only need an extension if I don't get a prompt response to the letter.

Thanks for your help. Talk about a shocker to find this out. Living in Canada and paying my taxes every year... thinking I was fine. Now this!!

Thanks.

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 8:57 am

sorry to hear that, please do check if you owe any tax to US -- i guess you are doing very well in Canada --otherwise you should not owe anything and no need to go to OVDI at all.

Your offshore issue is not really offshore at all -- IRS should have a different policy to deal with expat US person -- anything in Canada where you live should not be an offshore issue --- IRS is simply wrong to mix that with those who live in US with money in Candad (like myself).

nelsona · Post by **nelsona** » Thu Jul 14, 2011 9:24 am

They are different. One is unknowingly failed to realize that she is required to file a tax return (which, by the way will yield no tax), and the other has forgotten to include taxable income on their filed return.

One is treated kindly, one is punished. Both, in my opinion, are treated fairly.

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 9:30 am

exactly what i said,

tax issue on residency should face penalty,

tax issue on expats (likely reporting issue no tax due) should face no penalty at all.

nelsona · Post by **nelsona** » Thu Jul 14, 2011 5:53 pm

You're saying it *should* be like that , as if it isn't already.

It IS like that.

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 6:38 pm

i am saying offshore for expat is not really an offshore issue. it should not be mixed with those livie in usa with really offshore problem

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 6:46 pm

as a matter of fact, the current OVDI has very little relief for expats if they are over the limit. their bank accounts in the country where they live are being treated the same as "offshore". that is what i am talking..

nelsona · Post by **nelsona** » Thu Jul 14, 2011 8:03 pm

.... not if they don't owe tax.

tsanaha · Post by **tsanaha** » Thu Jul 14, 2011 8:19 pm

if no tax owed, it is the same for expats and for us residents.

however if tax owed, it is also same for the both, that is what i have problem with (logically it is not fair to use offshore)

for those expats who owe tax due to "offshore", they should be treated as under report the very same as US residents who under report their US bank income.

Using term "offshore accounts" for expats' resident country really does not make sense at all. where else they should keep their money ? for them, if they keep money in US, then it will become "offshore" in the eyes of Gov where they live.

what i think the problem is FABR -- for expats, their bank accounts in residental country should be exempted.