year? Thanks, 2006 tax client
david ingram replies:
George Arora, who did your return last year, has left and returned toCalifornia and is working for a CPA firm in Beverly Hills as a staffaccountant.
My son, Peter Ingram has returned after an absence of two and a halfyears and David Holroyd and Gillian Bryan are here with me as well on afull time basis. Another son Mitchell Ingram is coming along fine as aUS / Canada Tax preparer while attending Capilano College on apart-time basis.
I am the only one to consult on tax matters at the moment however.
So yes, there are 4 1/2 of us here and, of course:.
We are pleased to look after your tax return.
You may send the information by email in .pdf or word format. Pleasedo NOT use bitmap or any other word processor. (Number Pages by Handplease).
You may send it by snail mail - If you do, please keep a copy ofanything hard to replace. (Number pages by Hand)
You may send it by courier - If you do, please keep a copy of anythinghard to replace. (Number Pages by hand)
You may fax it. If you fax, please make sure anything light has beendarkened and, of course, number the pages by hand.
We ask that the pages be numbered in a corner by hand. That way if wehave difficulty with a page, it is easier to refer to it when talkingto you, and if a page does not come through, we know which page ismissing.
When copying on a photocopier or faxing, it is not unusual for one ormore pages to double feed and not be reproduced at the other end.
Depending upon whom you are dealing with at my office, Please send to:firstname.lastname@example.org email@example.com firstname.lastname@example.org@centa.comor email@example.com you email.
Please fax to (604) 980-0325 - preferably not at 3 AM because it is ahome office. 10:00 AM to 10:00 PM seven days a week is a fine time tofax./
Courier or snail mail to
david ingram's CEN-TA
4466 Prospect Road
North Vancouver, BC, CANADA
The preferable multi-line phone number to call is (604) 980-0321
Another business number is (604) 980-0499 - We use this as a phone out and fax out line however and it is more likely to be busy.
The kid's residence phone number is (604) 980-3578 if you just can'tget through on the office phone. However, it is not a business phone soplease only use it if really necessary.
What do we need you to send us? The following is not all of it by anymeans but if you have any of these things, printing out the governmentform and trying to match the lines makes a lot of sense.
US and CANADA
For US and Canadian returns we need to send in copies of Charitabledonation receipts. Therefore, we need copies of the actualreceipts.
For Canadian returns, we need to send in copies of the actualreceiptsfor medical costs. Therefore, we need copies or the actual recipts.
We need copies of or the actual NR4, T3, T4, T5, T5007, etc.slips. Weneed copies of W2, W2G 1042S, 8288, 1099-Misc, 1099-Div, 1099R US slips.
In general, if there is a tax deducted on a slip, we need a copy ofit. If it is just income, we do not necessarily need the slip,justthe amount but the slip is always nicer to have.
If there was tuition or other amounts paid for post secondaryeducation, we need the actual slip or a good copy.
If you are self-employed, we do not need the recipts or income. If youhave done a P & L (Profit and Loss) statement, we need the amountson the statements.
Hints on the statements for Canada.
You can find all Canadian Government tax forms at:http://www.cra-arc.gc.ca/menu/AFAF_T-e.html
If you are Self Employed in 'business' in Canada, I need theamounts you will find on the T2124 form which you can find at: http://www.cra-arc.gc.ca/E/pbg/tf/t2124/t2124-07e.pdf
If you are a Self Employed Fisher in Canada, I need the Amountsyou will find on form T2121 which you can find at:http://www.cra-arc.gc.ca/E/pbg/tf/t2121/t2121-07e.pdf
If you are a Self Employed Farmer in Canada, we need the amounts you will find on form T2042 which you can find at:
If you are a Self Employed Professional or A commission Salespersonin Canada where you do not actually sell a product and have a costof goods sold, you should fill in Schedule T2032 at:http://www.cra-arc.gc.ca/E/pbg/tf/t2032/t2032-07e.pdf
If you have a Rental house in the US or Canada, Canada wantsform T776 filled in at:http://www.cra-arc.gc.ca/E/pbg/tf/t776/t776-07e.pdf
A Canadian employee with business expenses would file form at:http://www.cra-arc.gc.ca/E/pbg/tf/t777/t777-07e.pdf
Notice that the Canadian Forms all have Computer code numbers besidethe items asked for. You should try toquantify your expenses to fitinto these codes. It will make our charges to you less because we donot have to add up amounts to fit into the government schedule. A goodexample would be field 8860 for Legal and accounting fees. Your statement might have a figure for accounting, a figure for taxprepareation and a legal figure for suing a client for an unpaid bill. For the purposes of the CRA's form, I want those added together andgive me one number only for field or line 8860.
Similarly, field 9220 asks for telephone and utilities. Thatmeans that even if you have separate totals for your Business phone,cell phone, fax, internet, heat and electricity, the CRA and I onlywant one total. Usually, when a client gives us these, they arescatterd through his or her information and it takes time to find themand add them which means a larger bill. The fishing form does nothave a place for telephione and utilities and the rental form only asksfor utilities in field 9220.
If you are a Canadian who is leaving the country this year, toavoid a $2,500 penalty, you have to deal with form T1161 at:http://www.cra-arc.gc.ca/E/pbg/tf/t1161/t1161-07-e.pdf
Specific Hints for the United States
All US forms can be found at:http://www.irs.gov/formspubs/lists/0,,id=97817,00.html
Self Employed (fisher, professional, commission sales agent, etc.) needto send in the figures on Schedule C which you can find at
If you have rental income in the US or Canada or France, you need tofill out Schedule E which you can find at:http://www.irs.gov/pub/irs-pdf/f1040se.pdf
If you are a US farmer, (Xmas trees, almonds, oranges, caribou or beef, etc.,the US wants Schedule F filed at:http://www.irs.gov/pub/irs-pdf/f1040sf.pdf
If you are a US or Canadian employee filing a US return withbusiness expenses, form 2106 is in order at:http://www.irs.gov/pub/irs-pdf/f2106.pdf
If you are an American filer with a Canadian RRSP, you mustfile US form 8891 at: http://www.irs.gov/pub/irs-pdf/f8891.pdf
If you have any foreign accounts whatsoever (Canada, France,Spain, Italy, Japan, Indonesia, Dubai, etc.) you MUST FILE SCHEDULEB at: http://www.irs.gov/pub/irs-pdf/f1040sab.pdf - Not a choice,if you ae the co-signer on your aged mother's account in any countrybut the USA, you must file Schedule B and answer questions 7 and 8. You say yes to question 7 if you have signing authority over foreignaccounts totalling over $10,000 at any one time in the year. Youanswer yes to question 8 if you have an RRSP, an RESP, aRRIF in Canada or the equivalent in any other country. You areunlucky if you have a RESP brecaue now you have to file form 3520 andlikley 3520A. You get to file form 8891 for a RRIFand an RRSP.
If you said yes to question 7, to avoid a minimum $10,000 fine,you must fill in form T D F 90-22.1 for each account you havesigning authority over including a company payroll account, a cub scoutaccount, your mother or father's account or a joint account with yourforeign spouse as well as your own accounts and you have to fillone outfor each RRSP as well. Find this TDF 90-22.1 form at:http://www.irs.gov/pub/irs-pdf/f90221.pdf - PS, the $10,000 is aminimum fine, the maximum is up to $500,000 PLUS 5 years in jail.
If the answer to 8 is yes, the fine is:
* 35% of the money in the RRSP Plus
* 5% of the money for every year not reported (that you should havebeen reporting) since 1989
* Tax on the amount in the RRSP.
To be honest, to this date, (Mar 1, 2008) I have never seen the 8891penalties imposed - not even once yet. However, the TDF 90-22.1fines are imposed routinely and my record (for silliness) was a 105year old lady with a $10,000 fine. I have NEVER had anyone fined whocame forward voluntarily. My understanding is that the Dept of theTreasury is presently fining some 1072 people who were clients of aVancouver Fiancail consultant, Jerome Schneider, who toldhis clients not to file them. Jerome Schneider receiveda $100,000 fine and 6 months in jail on a plea bargain when he turnedin all of his clients and the lawyers and accountants who wereassisting. see more on this and other US accountants a and theirclients who received jail time at:http://centapede.centa.com/Week-of-Mon-20060227/002468.html
If you already have your US return done and just want theCanadian return done, we obviously need a copy of the US return. Samewith the UK, Australia, Portugal or Libya.
Same thing if Canada or any of the other 200 returns is alreadydone and you just need the US return done. We need copies of thosereturns. Please label each line of the foreign return with the Englishword.
Hope this helps.