*****IRS removes form 8891****
*****News FLASH 10/14/2014*****
*****IRS removes form 8891*****
The Internal Revenue Service (IRS) announced that it is eliminating the formal requirements that Americans had to comply with every year when filing their U.S. tax returns to claim a deferral of U.S. tax on the undistributed income earned within these plans. Participants in these plans will now automatically qualify for U.S. tax deferral.
Also easing the situation, the IRS says taxpayers who failed to comply with the formal requirements in prior years will be treated as having retroactively made valid elections to defer U.S. tax on their Canadian plans, as long as they meet certain conditions.
The IRS announced this new policy in Rev. Proc. 2014-55, released on October 7, 2014.
Welcome back everybody!
It’s that time again…waiting for slips, gathering deductions, sorting through medical bills.
It’s tax time!
Please refer to our Checklist link on the top left hand corner of our site to get organized for your taxes.
For our Dual Citizens we have a wonderful spreadsheet for your bank account reporting obligations. You are going to love it!
Let’s get going!!
*****IRS removes form 8891****
The reporting of foreign bank and financial accounts (FBAR) has changed for 2014.. and not for the better.
If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing electronically a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). On September 30, 2013, FinCEN posted, on their internet site, a notice announcing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (the current FBAR form). FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior years) and is only available online through the BSA E-Filing System website. The system allows the filer to enter the calendar year reported, including past years, on the online FinCEN Form 114. It also offers an option to “explain a late filing,” or to select “Other” to enter up to 750-characters within a text box where the filer can provide a further explanation of the late filing or indicate whether the filing is made in conjunction with an IRS compliance program.
What this means for the most of us, is a new time consuming way to make the nonsense reporting harder for the average person. The accounts will no longer carryforward on software and need to be individually entered for each account. There will be no easy out for this madness as fees will have to be adjusted for the time needed to prepare the required forms.
we have dual citizenship in USA and Canada. Due to aging parents we are considering spending more time in USA. I understand that spending more than 6 months in USA would require us to change our residency to USA ( both of us born in USA). Our residency now is Ontario. I understand also that any income in USA is taxed only in USA and not in Canada if residency is USA? But my main question is..... concerning health care from Ontario you are required to be there five months a few days, but, having dual citizenship, are we able to take advantage of being up in Ontario the 5months few days, keep the health insurance with travel insurance, but yet our residency is USA?
Not sure if this is in your line of questioning. but thank you for any help you may offer.
My_question_is: US-specific question: I am a Canadian citizen living in the U.S. with my American wife and 2 children. My children are both dual citizens as they were born in Canada. We've been in the States for 9 years now and subsequently, my wife has lost her landed immigrant status in Canada. We would like to move back to Canada, so now I have to sponsor her. My question is, Do I send the sponsorship application 1st and then send her application afterward or do We send them both at the same time along with all fees? Also, do I need to put our kids name on the sponsorship forms as I will not need to sponsor them as they are already Canadian citizens?? I'm just a little unsure of what to do first as the website doesn't make it totally clear. Thank-you for any help you may have...
My_question_is: US-specific question: Moved to Canada from the US with my Canadian wife and obtained Canadian Citizenship 10 years ago. I've filed all my 1040's (sometimes a year or two late, sorry) but I'm current. I've just now heard of Forms 8891 and TDF90.22.1 How do I go about getting up to date with these documents when I've never filled them before? -----------------------------------------------------------------
Hello David Ingram,
Do you know what tax implications, if any, are there for receiving family
inheritance into Canada from abroad?
I will appreciate your advice/ response.
My_question_is: Both question: My wife has accepted a transfer from Alberta to Pennsylvania. Her employer is providing her with an L1 visa and me a L2. it is a 4 year assignment. I have 2 questions about rental income. 1. If we rent our house in canada how will we be taxed on the income and will we loose the tax exemption for gains on a primary residence? 2. If we purchase a US property with multiple units live in one and rent the others how will this effect our taxes? I have more questions that we could schedule a time to talk about.
My name is xxxxxxx xxxxxxx and I hope you can help me with resolving a question I have regarding US taxation of my RRSP.
In 2000, I resigned from the government of Canada to take a position with an IT company in the US. This action triggers a remittance of my Superannuation into a locked in RRSP, and along with my personal RRSP, gave me a combined RRSP balance of approximately $100,000 (cdn). After ten years and a couple of market bubbles later the balance is pretty much the same. I have never filed a 8891 with my US income tax, simply because my tax accountants in the US never mentioned it, so my question is can I file a request for tax deferment on undistributed earnings in the RRSP under Article XVIII (7) of the US-Canada tax treaty?
I know may require further information in order give an informed answer, so I am willing to engage your services because I have several more questions regarding taxation and my commuter Green Card.