What we need to file ypur US or Canada or US/Canada tax return - how to put it together -

Is there anyone at this email address available to do my income tax this
year? 

Thanks,  

2006 tax client

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david ingram replies:

George Arora, who did your return last year, has left and returned to California and is working for a CPA firm in Beverly Hills as a staff accountant.

My son, Peter Ingram has returned after an absence of two and a half years and David Holroyd and Gillian Bryan are here with me as well on a full time basis.  Another son Mitchell Ingram is coming along fine as a US / Canada Tax preparer while attending Capilano College on a part-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.  Please do NOT use bitmap or any other word processor. (Number Pages by Hand please).

You may send it by snail mail - If you do, please keep a copy of anything hard to replace. (Number pages by Hand)

You may send it by courier - If you do, please keep a copy of anything hard to replace. (Number Pages by hand)

You may fax it.  If you fax, please make sure anything light has been darkened and, of course, number the pages by hand.

 We ask that the pages be numbered in a corner by hand.  That way if we have difficulty with a page, it is easier to refer to it when talking to you, and  if a page does not come through, we know which page is missing.

When copying on a photocopier or faxing, it is not unusual for one or more 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: [email protected] or [email protected] or [email protected] or [email protected] or [email protected] if you email.

Please fax to (604) 980-0325  - preferably not at 3 AM because it is a home office. 10:00 AM to 10:00 PM seven days a week is a fine time to fax./

Courier or snail mail to

david ingram's CEN-TA
4466 Prospect Road
North Vancouver, BC, CANADA
V7N 3L7

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't get through on the office phone. However, it is not a business phone so please only use it if really necessary.

What do we need you to send us?   The following is not all of it by any means but if you have any of these things, printing out the government form 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 Charitable donation receipts.  Therefore, we need copies of the actual receipts.

For Canadian returns, we need to send in copies of the actual receipts for medical costs. Therefore, we need copies or the actual recipts.

We need copies of or the actual NR4, T3, T4, T5,  T5007, etc. slips. We need 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 of it.  If it is just income, we do not necessarily need the slip, just the amount but the slip is always nicer to have. 

If there was tuition or other amounts paid for post secondary education, we need the actual slip or a good copy.

If you are self-employed, we do not need the recipts or income.  If you have done a P & L (Profit and Loss) statement, we need the amounts on 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 the amounts 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 Amounts you 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:
 http://www.cra-arc.gc.ca/E/pbg/tf/t2042/t2042-07e.pdf

If you are a Self Employed Professional or A commission Salesperson in Canada  where you do not actually sell a product and have a cost of 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 wants form 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 beside the items asked for.  You should try toquantify your expenses to fit into these codes.  It will make our charges to you less because we do not have to add up amounts to fit into the government schedule.  A good example would be field 8860 for Legal and accounting fees.  Your statement might have  a figure for accounting, a figure for tax prepareation 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 and give me one number only for field or line 8860.

Similarly, field 9220 asks for telephone and utilities.  That means that even if you have separate totals for your Business phone, cell  phone, fax, internet, heat and electricity, the CRA and I only want one total.  Usually, when a client gives us these, they are scatterd through his or her information and it takes time to find them and add them which means a larger bill.   The fishing form does not have a place for telephione and utilities and the rental form only asks for utilities in field 9220.

If you are a Canadian who is leaving the country this year, to avoid 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.) need to send in the figures on Schedule C which you can find at
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

If you have rental income in the US or Canada or France, you need to fill 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 with business 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 must file 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 SCHEDULE B 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 country but 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 foreign accounts totalling over $10,000 at any one time in the year.  You answer yes to question 8 if you have an RRSP, an RESP, a RRIF in Canada or the equivalent in any other country.  You are unlucky if you have a RESP brecaue now you have to file form 3520 and likley 3520A. You get to file form 8891 for a RRIF and 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 have signing authority over including a company payroll account, a cub scout account, your mother or father's account or a joint account with your foreign spouse as well as your own accounts and you have to fillone out for 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 a minimum 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 have been reporting) since 1989
*   Tax on the amount in the RRSP. 

To be honest, to this date, (Mar 1, 2008) I have never seen the 8891 penalties imposed - not even once yet. However, the TDF 90-22.1 fines are imposed routinely and my record (for silliness) was a 105 year old lady with a $10,000 fine.  I have NEVER had anyone fined who came forward voluntarily. My understanding is that the Dept of the Treasury is presently fining some 1072 people who were clients of a Vancouver Fiancail consultant, Jerome Schneider, who told his clients not to file them.  Jerome Schneider received a $100,000 fine and 6 months in jail on a plea bargain when he turned in all of his clients and the lawyers and accountants who were assisting. see more on this and other US accountants a and their clients 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 the Canadian return done, we obviously need a copy of the US return.  Same with the UK, Australia, Portugal or Libya.

Same thing if Canada or any of the other 200 returns is already done and you just need the US return done.  We need copies of those returns.  Please label each line of the foreign return with the English word.

Hope this helps.