Filing Back Tax Returns for U.S. Citizens Living in Canada Watch Video
Allan Madan, CPA, CA
This short article is called ‘Filing Back Tax Returns for US Citizens Living in Canada’ Read More…
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Hi, i just sent you an email asking if you did offer services in the streanline process. Now i see that you do after checking some of the different links on your site. I’m impressed that made such a clear and professional video in that exact topic.
I have not filed any US taxes because i didn’t know there was a law saying so. I was born in usa but I’ve lived here my whole life even obtaining Canadian citizenship here. I want to relinquish sooner or later but i realize i need to in compliance first.
Can you tell me what your estimated fees are for this type of service? My taxes are pretty simple not much investments etc. If that helps to give you idea pricing wise. As well i have obviously not filed the FBARS. I was told by a friend they heard on the news that us citizens living in Canada have to file taxes in the us and asked me if i did that because he heard there were possible fines and penalties. So over the last couple of weeks, I’ve been frazzled and reading as much as i could to find out more about this. I’m a relatively low income earner under $40,000 per year.
It would be great if i can find out if you are able to help. Of note, i never applied for a SSN because i never worked out there. Thank you for your time.
Sincerely,
Ms. X (name left blank)
Hi Ms. X,
As you may know, the Streamlined Process was created by the IRS to allow delinquent tax filers (who are US citizens living abroad) to become compliant with the IRS. The advantage of the Streamlined Process is that it is easy, and eliminates civil penalties for late-filing.
You do not have to file tax returns for every single year that you are behind. Rather, under the Streamlined Process, you have the file the following returns:
1) US personal tax returns for the past 3 years, plus the current year
2) Foreign Financial Bank Account Report (FBAR) for the past 6 years, plus the current year
So long as you did not have significant sources of other income, aside from your yearly employment income of $40,000, it’s unlikely that you will have a US tax liability. Please feel free to contact me at amadan@madanca.com or call me at 905-268-0150 to discuss this matter further.
Thank You,
Allan Madan, CPA, CA & Team