U.S. Tax Services
Are you in need of U.S. Tax Services? Do you have questions about whether you need to file a U.S. Return? Contact us.
Do I really need to file US personal taxes?
If you are considered a US person (not just a citizen) you are expected to file US tax documents. There are many different ways that the US government determines if someone is a “US person”. If you’re not sure, why not call our office and speak to someone in our US tax department to find out more.
Can you handle my US Corporate Tax Return?
Yes. At Price & Comin LLP you have access to a dedicated US tax department that is able to provide corporate tax return services as well. We work with many clients that operate businesses on both sides of the border. Do you own recreation or vacation property in the US? We can help you with those filings as well.
Why we’re different from any other CPA firm?
We have a dedicated US tax department that employs CPA’s with decades of US tax experience. They are available year-round to answer all of your US tax questions. Our dedicated US tax department will maximize your refund or minimize your tax payable as much as possible under current US tax law.
US Tax FAQ’s
Why do I need to file a US tax return?
US tax is based on citizenship and requires all US citizens to file a tax return declaring worldwide income regardless of where they live. This is known as form 1040.
What if all of my money is in a Canadian account?
US citizens with a financial interest in non-US financial accounts, with an aggregate value exceeding $10,000 at any time during the year, must report specific financial account information to the US Department of Treasury. (Report of Foreign Bank and Financial Accounts Form FinCEN114)
What about my mutual funds and other investments?
Canadian mutual funds and similar investments are considered to be passive foreign investment corporations for US tax purposes. US citizens are subject to complex tax rules on these investments if they are held outside of an RRSP or RRIF. You want to be sure your investment advisor is familiar with these rules to avoid adverse tax consequences. (Form 8621)
I have an RESP, now what?
The US considers an RESP (Registered Educational Savings Plan) to be a foreign trust; therefore US citizens are subject to reporting requirements for foreign trusts. (Form 3520)
Are Tax-Free Savings Accounts different in the US?
Unlike in Canada, where income or capital gains realized on investments held in a Tax-Free Savings Account are tax-free, any income or capital gains realized within a tax-free savings account held by a US citizen is taxable in the US. Tax-Free Savings Accounts may also be deemed as foreign trusts and subject to reporting requirements for foreign trusts.
Are there special rules for US citizens who own businesses in Canada?
US citizens who are officers, directors or shareholders with more than 10% ownership in non-US corporations have additional reporting requirements regarding the corporation that has to be reported with their personal tax return. (Form 5471)
What are some of the penalties involved?
The penalties for failure to file vary by form. They are based on a percentage of assets for some forms, a minimum of $10,000 for others, and up to $10,000 for others. Depending on the form, the penalty may be applicable for each outstanding year.
What if I'm a Canadian citizen now and file taxes here?
Being a Canadian citizen or filing Canadian income tax returns does not eliminate the requirement to meet US tax reporting and disclosure obligations for a US citizen. It is recommended that US citizens who have not kept current, or who have filed previously, file tax returns under a Voluntary Disclosure Program.