QUESTION:
We are Canadian citizens living in the US with green cards. We moved here
about 11 years ago. I have worked and filed US income tax. My husband is
self-employed in Canada as an agent's representative....selling US products
in Canada. He was lead to believe that he only needed to file in Canada.
We now know that is not true and want to correct our mistake. My husband
filed as a corporation years ago but his accountant has always only treated
his taxes as self-employed. His salary has never exceeded $55,000. CDN. I
always filed married filing separate. My husband would travel back and
forth every week or two.since airline travel was almost free..I worked for
the airlines in customer service. I lost my airline job and my husband lost
a large account which has forced us into considering bankruptcy in the US.
We need to have 1040's for my husband, so thought we would have an
international taxman file my husband's first US tax return and any canadian
paperwork necessary. WE are totally stressed out especially after reading
your information re being charged and fined for not filing US tax. Please
help us take the correct steps in this situation.
==============================
david ingram replies:
I would be glad to help you with your problem.
When coming forward the IRS asks for the last six years to be filed. That
means I would need copies of his Canadian returns and copies of your
returns for the last six years.
i.e. 98, 99, 2000, 2001, 2002 and 2003 - actually, at this point in time, we
can likely drop 98.
The good news is that I doubt if there will be any tax owing if we amend
your return to make them joint returns. If we file him as Married filing
separately, there "will" be AMT tax owing for sure because the exemption
limit ran from about 22,000 to 29,000 over the last six years.
If you can get them to us in the next week or ten days it will be much
cheaper than three weeks from now when we will be really busy with the
current tax returns.
copy to George Arora CPA, MBA, MST
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 Fax (604) 980-0325
Email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com> www.david-ingram.com
<http://www.david-ingram.com/>
Be ALERT, the world needs more "lerts"
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