QUESTION: I have lived in Canada since 1974 as a landed immigrant. I became a Canadian citizen in 1994, and have also retained my US citizenship. I have been advised that due to US/Canada information sharing treaties that I did not have to file US taxes. After starting research on my own, I have learned that I do indeed need to file tax returns with the US. My question is: How many years back do I need to file? My annual income over these 28 years has ranged from zero to a maximum of $44,000. Thank you very much. ================================ david ingram replies: Filing "catch up" US returns is a big part of our business and we have every year from 1985 on available on computer and everything back to 1973 available on paper. The furthest back the IRS ever asks for is 1967 but I have never seen them go back more than eight years. As a matter of course, we file six years back. In the 37 years I have been doing this, I have "never: had them ask for more when we do six. We have had them ask for 5 more when we do three. I recommend that we do six years and "get it over with". It is unlikely that you will owe any tax to the US if you come forward voluntarily. If you were "caught" Maybe while at an International event for your organization. There would be penalties, interest and maybe even tax because after two years, the IRS does NOT have to give you either the exemption or the foreign tax credits available for voluntary disclosure. We would be happy to look after this. We need copies of your last six (1997 to 2002) Canadian returns AND more importantly, we need details of all your Canadian Bank, Trust and credit union accounts and we need the Dec 31, 2001 and Dec 31, 2002 year end statements for any and all RRSP accounts you have. Go to www.centa.com click on newsletters, click on 2003, click on August to get the details about the need to file the RRSP accounts by Oct 15, 2003 (there is an amnesty). Goto http://www.irs.gov/pub/irs-fill/f9022-1.pdf and read the bottom of the TD F 90-22.1 Form which has penalties of up to $500,000 plus five years in jail for failure to file to report your Canadian Accounts. We would likely charge about $150.00 a year to fix the old returns and about $300.00 for the current year to look after the TD F 90.22.1 forms and the RRSP reporting under REV.PROC 2002-23 david ingram - [email protected] <mailto:[email protected]> 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 913-9133 - (604) 913-9123 www.centa.com <http://www.centa.com> Cell is (604) 657-8451 (10 AM to 10 PM seven days a week) US/Canada Real Estate Taxation Specialists US / CANADA / MEXICO Working Visa and Income Tax Specialists 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 in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.515 / Virus Database: 313 - Release Date: 9/1/03 --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.515 / Virus Database: 313 - Release Date: 9/1/03
