Canadian/US tax filing assistance


My husband and I are in need of Canadian/US tax assistance and advice. We had been living and working in the US, under J1 andJ2 visas respectively, for 2 years until August 2006, and we haven't yet completed or submitted our US or Canadian 2006 taxes.

Also, my husband has not filed Canadian taxes for 2004 (Jan-August). This will have to be done.

We have both filed US taxes for 2005.

Question 1 - We haven't filed Canadian taxes for 2005, since we were living and working in the US for the entire year. - do we have to?
Question 2 - I know that there is a question of residency, and this is where I am having some difficulty - the language in the resarch I have done is tricky and difficult to interpret. I think that since we were living and working in the US from September 2004 until August 2006, that we were residents of the US and so should only file/pay taxes in the US for that period. Is this true? We don't want to have to pay taxes twice!

We have all of the forms and documentation, but they need to be filled out correctly and filed.

Is this something that someone in your office can help us with? If so, can we make an appointment to meet at your convenience? And if not, can you point us in the right direction? Any help would be greatly appreciated.

We are also interested in longer-term tax/financial advice. Is this something that you offer as well?

Thank you.
david ingram replies:

Your situation represents our typical client rather than the occassional one which most accountant / tax advisors would encounter.

I would be happy to see you and prepare the paperwork necessary.

You do not have to file for 2005 but likley should to stop the computer asking for it anyway when you are still filing for 2004 and 2005.  There would not be any tax on the 2005 because any US income would be exempted under article IV of the US Canada Tax treaty.

The 2004 should likely have had form T1161 filed and it needs to be explored because a late form is a $2,500 fine.

My experience is that the CRA fines the 42,500 if the form is filed late but has not yet fined anyone for not filing it  (Is there a message there) in my experience.

Call Gillian Bryan between 10:30 AM and 4 PM at (604) 980-0321 to set up an appointment to have teh 2004 Cdn and 2006 US (state) and Canadian returns prepared.

You should bring in your 2004 US return as well as I can almost guarantee that it will be  deficient if prepared by a US accountant who does not specialize in people moving into the country. �