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Subject: Re: U.S. Citizen with Landed Immigrant Status
Hello,
I was very pleased to find your website, although I have gotten confused reading through all of that information.
My situation is this: I have been a Landed Immigrant since 1981. I live in Victoria, B.C. My financial status has been very modest - certainly well below the exemption amount of earnings that you have quoted. I have never even thought of filing a U.S. tax return! I do file my returns faithfully here in Canada.
I am considering a trip next year to the States to visit my son. I have been advised to apply for a new passport, to avoid problems at the border.
Should I try to catch up with U.S. returns from 1981 to present - or do I have to bother? I am certainly not in the tax bracket that they would be interested in. What do I do?
Thank you.
Regards,
LXXXXXXXXX
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david ingram replies:
You absolutely have a tax liability to the United States. You will not owe any tax if you come forward and file voluntarily, but if your name comes up in any other situation, and they ask for back returns, you could be / would likely be denied the exemption amounts or the foreign tax credits which would wipe out the US tax.
This could happen as you cross the border and it could happen when you apply for your passport because one of the questions is "have you been filing your tax returns".
However, you do not have to go back to 1981 although they can ask for them back to 1967. In practical terms, they ask you to bring them up to date for the last six years.
If you wish, we would be happy to prepare them for you. Send us copies of your 1997 to 2002 Canadian Returns to the address below. We also need the Dec 31st 2001 and 2002 balances for all your RRSP accounts and we need the numbers of all your financial accounts for the purpose of filling in the TD-F 90 forms which you have been missing and which "could" leave you liable for a fine of up to $500,000 plus 5 years in jail for failing (as a US citizen) to report your foreign (Canadian) financial accounts to the Department of the Treasury in Detroit.
See the form at: http://www.irs.gov/pub/irs-pdf/f9022-1.pdf - read the small print at the bottom of the form for details of the penalties.
Go to www.centa.com click on newsletters - click on 2003 - click on august to read the RRSP requirements and the penalties which can result here.
You can contact me at the address and numbers below. If I am not available, Gail Ritter, D'Arcy von Schleinitz os Sonja Clark can assist you.
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
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