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Hi David,
Sorry to hear about your wife. My question is this, during my
university & post-university years (1990-96) I did not file a
return and have no records/slips for the part-time jobs I've
held. How do I go about filing for those years? Most likely I
would be receiving a refund, including GST.
Thanks,
XXXX
=====================
DAVID INGRAM REPLIES:
No problem -- we can go back to 1985.
You have to go to the CCRA office closest to you and get them to
give you printouts of their files.
IF YOU DO NOT WANT TO DO THAT YOU CAN SEND US WRITTEN PERMISSION
TO GET THEM FOR YOU.
We need your tuition amounts as well so ask the University for
copies of your tuition and months in attendance data.
It is taking a couple of weeks at the moment. When you get them,
just send them or bring them to us and we will be glad to look
after the situation.
And your inquiry reminds me that I missed one more date.
A Canadian who has not filed or who finds an extra RRSP slip or
Tuition slip or an error on his return which would get him or her
a bigger refund can file or amend back returns to 1985. we have
to apply to the FAIRNESS COMMITTEE to have them accepted but I
have not had a single turn down so far.
You do NOT get any provincial credits like an Ontario Rental
credit or a BC sales tax credit but you will get the Federal
credits which can be significant.
david
-----Original Message-----
From: [email protected]
[mailto:[email protected]]On Behalf Of
[email protected]
Sent: Thursday, July 24, 2003 5:11 AM
To: CENTAPEDE
Subject: How long should a Canadian or American keep
theirincome tax records
This question came by phone but I thought it was worthy of
inclusion.
The quality of my answer is better for Canadians and it is a
little skimpy for Americans so if an American Accountant wants to
add to the comment, please feel free and I will, of course, give
you credit.
Canadians and Americans who have anything other than a W2 or T4
slip should keep their records for ever, particularly if they are
self-employed.
I will use the example of yesterday's missive where our Client
had Canada's CCRA go back to 1991 and assess him $77,000 in GST
because he had not registered and had not filed a tax return.
Having his old records allowed D'Arcy von Schleintiz to reduce
that bill from $77,000 to $27,000. If the client had thrown his
records away after seven years (the common time), he would be
paying another $25,000 because the biggest amounts and hthe
biggest penalties involved 1991, 1992 and 1993.
In the above case, the client had not filed the returns.
Therefore, the CCRA can "ask for them all".
We have had a 78 and 80 year old couple who sell stuff at flea
markets asked for tax returns back to 1990 by the CCRA in the
last six months and we have a Canadian stock broker (tax bill
$280,000 Plus) who are presently being audited back to 1990
because they had not filed returns.
In practical terms, if a Canadian has filed the returns to the
best of his or her ability, the rule is that the government will
not or cannot go back more than three years from the date of
assessment.
I had a good example of that on June 20th when at a meeting at
the CCRA office in Victoria. I was there for an audit of a
client's 1999 and 2000 income tax returns.
we had spent a "LOT" of time recreating the 1999 figures because
the client's wife was doing the books and there were a lot of
items in the wrong columns. HOwever we were confident that the
totals were correct within a $1,000 which was pretty good with
$100,000 worth of expenses and some of them just notes for
parking meters and the kind of thing where receipts are not easy.
When we went into the office, the assessor said that she had
missed the deadline and it was too late for her to re-assess the
1999 return. That was the good news. As an aside, while I was
in Victoria, unknown to me, my wife of twenty years was moving
out of our house in North Vancouver into a boyfriend's house.
She had met the boyfriend formally one month earlier. Notice, I
am still talking about timing.
M L, one of our clients (after the situation, not before) was
reassessed by the US government for $186,000 US. the IRS went
back 9 years of unfiled tax returns. By the time we were
finished the bill was down to: (drum roll please) $144.60. In
the meantime, the bill had cost him his car, his house and his
marriage. He is also trying to figure out what parts were good
and what parts were bad.
Income tax assessments are murder on a marriage. Many, many fail
because the pressure is just too much.
Note that everybody so far has been assesed becaaue they have not
filed a return. I understand, but have not seen it happen, that
the IRS can go as far back as 1967 to ask for a tax return which
has not been filed. The most I have seen personally is the nine
years for ML.
In Canada, the most I have seen is 12 years.
On the other hand both Canada and the US seem to stop at three
years if no fraud is involved.
If there is Fraud or wilful negligence.
In Canada, if you neglected to report the $9,600 a year you have
been receiving for the suite in your basement, or neglected to
report your part-time window glazing business for the last seven
years the CCRA can open those old returns and go back eight years
with impunity.
I do not know what the statute is for the US so if someone wants
to enlighten me I will give you credit.
Hope this helps. Even though you "can" write to the IRS or the
CCRA and ask for permission to destroy your records, I sugges
ttheat you do not do so. Hold on to them. Keep them in a few
boxes in the corner.
Pass this on to your friend who has not filed a return for a
dozen years. Tell the friend tha teh CEN-TA Group can look after
any return in the US or Canada with on-line programs for the US
and Canada. and WE CAN DO IT BY MAIL, FAX, EMAIL OR PERSONAL
VISIT.
David Ingram of the CEN-TA Group
US / Canada / Mexico tax and working Visa Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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