Dear Mr. Ingram,
1. I am a client of Fred Snyder's. I got your name through his office and hope you can give me some guidance..
2. I am trying to help someone close to me with his tax problem - mainly of not filing and paying his taxes for several years. After having most of his money garnished, he has little ability to handle the remaining balance, with interesting piling up every day and approaching $14,000, not counting the upcoming 2009 season.
3. My question for the larger picture is whether engaging the help of a consultant such as yourself or a tax lawyer will affect the outcome as to the amount he will have to pay back - namely, will there be any room for negotiation, or compassion.
4. In addition to that, do you think Revenue Canada will be open to working out a payment plan and halt the penalty?
5. What will be the best approach to take if I choose to help and represent him in this matter?
6. Also, can you please tell me what a Discharge Memorial of Judgment is? Good or bad?
7. I will be very grateful for your advice. Thank you so much.
david ingram replies:
Paragraph 2-- If he has no assets, a bankruptcy is likely the best method
3. A tax lawyer could be of help but more likely a bankruptcy lawyer with a knowledge of tax would be better. I suggest Murray Morisson at (604) 930-9013
4. The CRA works out payment plans all the time. You have to talk to the collection agent to arrange it. Again, having a bankruptcy lawyer arrange it would likely be more powerful. However, unless the CRA made an error or delayed things, or your friend had severe medical or other problems, it is not likely that interest and penalty will be halved.
5. I do not know enough to advise you.
6. A "Memorial of Judgment" is simply an olde English term meaning a judgment. It was never used in the west but there were lots of them in PEI, New Brunswick and even Nebraska and Australia in the 1800's.
A discharge means that the judgment does not exist anymore.
First you have to ascertain what the total liabilities will be -- In another 45 days, you will be able to figure out 2009 as well.
Then, if he has assets, figure out a payment plan and if there are no assets, consider bankruptcy.
hope this helps
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This is not intended to be definitive but in general I am quoting $900 to $2,900 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only (but were filing both countries) - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,100 would be the same with one rental
$1,300 would be the same with one business no rental
$1,300 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,600 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits no move in or out
$1,700 would be for two people with income from two countries
$2,900 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $175.00 up.
With a Rental for $375
A Business for $375 - Rental and business likely $500
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales) are likely $50.00 for the first and $20.00 each after that.
Catch - up returns for the US where we use the Canadian return as a guide will be $150 to $500.00 depending upon numbers of bank accounts, RRSP's, existence of rental houses, etc.
Just a guideline not etched in stone.
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David Ingram expert income tax and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty advice on bankruptcy
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