CRA foreign tax credit audit - Need Help please!!

[Glorees2017]

Hi

I'm trying to get a straight answer for a questions I've been asking all over. I asked this question:

"I'm a US citizen living in Calgary and I do my own 1040 return each year. I was audited by CRA because of the foreign tax credit that I claimed on my CAnadian return. Even though I had to go through the hassle of getting an IRS transcript to prove to the CCRA that I paid US taxes they still denied a portion of my tax credit. I even sent them the IRA tax slip that shows the 15% tax that was withheld before the payment was made to me.

is there any recourse?"

I asked it here https://xborderpros.com/forum/us-canada ... dit-audit/ and got 2 different answers.

Can someone please clarify this for me?

Big thanks!

[nelsona]

The answers there were both correct. Yo uwere noyt audited, they asked for further proof of your US tax payment.
CRA has to tell you why your claim was denied/reduced. Withoout that information, there not much else to go on.

[nelsona]

One thing though, is that the 1099 is of no use in this case, since you are a US citizen.
You must file a 1040 to determine the correct taxation of that income, and that will be the most you can claim.