IRS Manual on informant's rewards - A Canadian who buys US property.
My_question_is:
US-specific
Subject: A Canadian who
buys US property.
Expert:
[email protected]
Date:
Monday February 19,
2007
Time: 09:33
PM -0500
QUESTION:
My neighbours parents have bought and sold 3
properties in the US and have not declared any of the profits that they
made.What could be the tax consequences if the tax dept finds out?
What
if Canadians purchase property and flip it and do not declare any of the profits
in Canada? Thanks for your
information.
-----------------------------
david ingram
replies:
A non-resident of the US who sells a property is subject to US
capital gains and Alternative Minimum Tax of up to 28% of the capital
gains. Failure to file and report has serious US AND Canadian tax
consequences.
A usual sale by a non-resident would result in 10% of the
gross sales price being withheld and in most cases, this is enough to cover any
tax withheld. However, failure of the non-resident to file the return
(even with a refund coming) can result in a US fine of $1,000 to $10,000 per
person.
You are in luck - there is a reward of 1 to 15% of the tax
collected in the US. Canada has no reward system at the moment.
To
get the most money, you need to give addresses and dates.
Read this older
Q & A.
Sent: Tuesday, July 11, 2006 3:21 PM
To:
[email protected]
Subject: CHED Radio, Edmonton
Hi David,
I
heard your show with Leslie Primeau last night and I sure found it interesting
and entertaining.
I was curious though, what are the rewards for
reporting a US citizen for tax evasion? Is it a percentage of the total or
a flat
rate?
Thanks,
--------------------------------------------------------------------
david
ingram replies;
Glad you enjoyed the radio show. It is actually
hard to understand for some, but income tax preparation is an amazingly
interesting business because of the people one deals with.
The
United States pays rewards of from 1% to 15% of the actual tax collected for
information provided.
15% is paid for specific and responsible
information materially helping in the investigation and resulting in the
recovery or was a direct factor in the recovery. This can even apply when the
IRS is already involved in an audit and you come forward and give them an
important direction to go.
10% is paid for information that causes an
investigation or if already under audit caused an investigation of an
issue.
1% is paid when you cause the audit but had no direct relationship
to the determination of liabilities.
None of the above rewards
shall exceed $10,000,000.
You can find the claim form 211 at http://www.irs.gov/pub/irs-pdf/f211.pdfGood Luck! - Oh yes, even though the IRS does NOT withhold tax when
paying the reward, it "IS" taxable in both countries because it is for services
rendered.
The information for Informant's rewards can be found in the IRS
Manual Part 25, Chapter 2, Section 2 at:
http://www.irs.gov/irm/part25/ch02s02.html -----------------------------------------------------------
David
Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and
working Visa Specialists
US / Canada Real Estate Specialists
My Home
office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N
3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls
welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time -
(please do not fax or phone outside of those hours as this is a home
office)
email to [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 for expert help, assistance, preparation,
or consultation 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"
David Ingram gives expert income tax & immigration help
to non-resident Americans & Canadians from New York to California to Saudi
Arabia to Mexico to China or Chile - Cross border, dual citizen - out of country
investments are all handled with competence & authority.
New York,
Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia,
Pittsburgh,
Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers,
Cape Coral,
Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay,
Minot, Portland,
Seattle, St John, St John's, Fredericton, Quebec, Moncton,
Truro, Atlanta,
Charleston, San Francisco, Los Angeles, San Diego,
Sacramento, Taos, Grand
Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa,
Monteray, Carmel,
Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham,
Custer, Grand Forks,
Lead, Rapid City, Mitchell, Kansas City, Lawrence,
Houston, Albany,
Framingham, Cambridge, London, Paris, Prince George, Prince
Rupert,
Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon,
Madrid,
Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers, Berlin,
Hamburg
Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai,
Beijing,
Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red
Deer, Olds,
Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie,
Davidson,
Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey,
Edinburgh,
Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney,
Nanaimo,
Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich,
Kyoto,
Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries,
Squamish,
Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope,
Penticton,
Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis,
Centralia,
Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson,
Fort St
James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape
Spears,
Truro, Charlottetown, Summerside, Niagara Falls, Albany
Zimbabwe
international non-resident cross border income tax help
assistance expert preparation & immigration consultant david ingram, experts
on rentals mutual funds RRSP RESP IRA 401(K) & divorce preparer preparers
consultants
Alaska, Alabama, Arkansas,
Arizona,
California, Colorado, Connecticut,
Delaware, District
of Columbia, Florida,
Garland, Georgia, Hawaii,
Idaho, Illinois,
Indiana, Iowa, Kansas,
Kentucky,
Louisiana, Maine, Maryland,
Massachusetts,
Michigan, Minnesota,
Mississippi, Missouri, Montana,
Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico, New
York, North Carolina,
North Dakota, Ohio, Oklahoma,
Oregon.
Pennsylvania, Rhode Island, Rockwall,
South Carolina,
South Dakota, Tennessee,
Texas, Utah, Vermont,
Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta,
Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward
Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit
Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston
Rockwall Garland
Texas Taxman and Tax Guru and
wizzard
wizard - consultant - expert - advisor -advisors consultants -
gurus - Paris Prague Moscow Berlin
Lima Rio de Janeiro, Santaigo
Zimbabwe
David Ingram expert income tax help and preparation of
US Canada Mexico non-resident and cross border returns with rental dividend
wages self-employed and royalty foreign tax credits
This from "ask an income
tax and immigration expert" from www.centa.com or www.jurock.com or
www.featureweb.com. David Ingram deals on a daily basis with expatriate tax
returns with:
multi jurisdictional cross and trans border expatriate
problems for the United States, Canada, Mexico, Great Britain, United
Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New
Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador,
Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq,
Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba,
Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB,
and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San
Antonio Houston
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax
and Immigration Tips, Income Tax Immigration Wizard Antarctica Rwanda
Guru Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6
Non-Resident Real Estate tax specialist expert preparer expatriate anti money
laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000
cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help
USA US
Comments (0)
CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/UsCaWeekofMon20070219003157.html