CRA foreign tax credit audit - Need Help please!!

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Glorees2017
Posts: 1
Joined: Tue Sep 26, 2017 1:00 am

CRA foreign tax credit audit - Need Help please!!

Post by 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
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by 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 non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by 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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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