US obligation for Canadian accounts
Hello,
If you are a US resident for tax purposes, how do you treat Canada Savings Bonds?
Is there any recourse if you realized you held a Canadian financial account >$10,000 that you didn't report by June of that year?
Thank you.
_____________________________________________-
david ingram replies:
Canada Bonds held by a Non-resident are not taxable in Canada. There is no 10% withholding. They ARE taxable on Schedule B of your US 1040 however.
Holding accounts totaling over $10,000 leaves you liable for penalties of up to $500,000 PLUS 5 years in jail.
Pay attention to the two questions at the bottom of Schedule B. Answer them truthfully and fill out an 8891 instead of a 3520 and TDF 90-22.1 forms for each and every Canadian account you have if the total is over $10,000. �
If you are a US resident for tax purposes, how do you treat Canada Savings Bonds?
Is there any recourse if you realized you held a Canadian financial account >$10,000 that you didn't report by June of that year?
Thank you.
_____________________________________________-
david ingram replies:
Canada Bonds held by a Non-resident are not taxable in Canada. There is no 10% withholding. They ARE taxable on Schedule B of your US 1040 however.
Holding accounts totaling over $10,000 leaves you liable for penalties of up to $500,000 PLUS 5 years in jail.
Pay attention to the two questions at the bottom of Schedule B. Answer them truthfully and fill out an 8891 instead of a 3520 and TDF 90-22.1 forms for each and every Canadian account you have if the total is over $10,000. �
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