This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
I'm a US/Canadian citizen living in Canada. I've noticed that my brokerage (Virtual Brokers) provided a 1099-DIV for my RRSP account. My understanding is that dividends from the RRSP account do not need to be reported to the IRS. Why would they have provided that form?
Also, I used Serbinski for my taxes this year and noticed that the dividends reported on the 1099-DIV were included as foreign income. I think this is a mistake as the account is based in Canada, only holding Canadian listed ETFs, and is in my RRSP. This then shouldn't have counted as taxable income.
No. They are not taxable, and should not have been included, and should not be issued either.
Why serbinski included these is for them to tell you, but did you mention all these things to the preparer? You are paying a lot to have simple mistakes like that made on your return.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Thanks for the response and clarification Nelsona. I'm talking with Virtual Brokers about another error they made (incorrect calculation of non-registered 1099-DIV). Once that's fixed I'm going to talk with Serbinski. They made many little mistakes all over the US and Canadian returns.
Haha I'm so paranoid about IRS and FATCA too that I pay tons of money for (relatively) simple cross border tax preparation. Next year hopefully I'll have learned enough to do it myself!
What should we do for such case? Since 1009 form is issued, it means that information has been shared to IRS. That said, you need to pay tax when filing your tax? Otherwise, IRS will see the discrepancy and come after the person.
Right?
