U.S. Tax Tips

Mar 19, 2019

Extending a U.S. Tax Return’s Due Date

One distinct aspect of the U.S. tax system is the ability for a taxpayer to extend the due date of a tax return. This allows the taxpayer additional time to complete and file an income tax return without being assessed a late filing penalty. Late filing penalties are assessed at the rate of 5% per month up to a maximum of 25%. In most cases a tax return due date can be automatically extended by up to six months. All that is required is the filing of the proper extension form. No explanation from the taxpayer is required and the IRS cannot deny a properly filed extension. However, the timely filing of the form is crucial in order for the extension to be valid.

Feb 25, 2019

U.S. Citizens and Sale of Foreign Principal Residence

For most individuals, their principal residence is their single most important asset. In Canada, when an individual sells their principal residence the gain on the sale is exempt from capital gains tax in most instances. A taxpayer must designate the property as their principal residence when they file their Canadian personal income tax return. This is one of the biggest gifts to individuals in the Income Tax Act…

Feb 15, 2019

Housing Deductions – Impacts of the 2017 Tax Cuts and Jobs Act

The passing of the 2017 Tax Cuts and Jobs Act (TCJA) introduced many changes for taxpayers. Of significant importance for U.S. taxpayers abroad were the repatriation provisions under IRC §965 and the introduction of the new Global Intangible Low Taxed Income (GILTI) regime under IRC §951A. We have discussed and will continue to discuss these provisions as necessary…

Jan 29, 2019

The Foreign Tax Compliance Act (FATCA) – It’s happening! FBARs and Form 8938 – A reminder

There has been much in the news lately about the… Read more »

Jan 17, 2019

2019 U.S. Tax Rates

On November 15, 2018 the IRS issued Revenue Procedure 2018-57. … Read more »

Jan 08, 2019

The Tax Fairness for Americans Abroad Act of 2018 [Proposed]

On December 20, 2018, just before the Congressional holiday recess,… Read more »

Dec 11, 2018

Interest Deductibility

The Tax Cuts and Jobs Act of 2017 (“TCJA” P.L…. Read more »

Dec 04, 2018

U.S. Social Security Numbers

All United States persons (citizens and green card holders) are… Read more »

Nov 20, 2018

Expiring ITINS

Individual Taxpayer Identification Numbers (ITINs) are tax processing numbers, issued… Read more »

Aug 20, 2018

The U.S. Repatriation Tax – IRC §965: Proposed Regulations Issued

On August 3, 2018 the IRS issued “final” proposed regulations… Read more »

Jul 30, 2018

FBAR Penalties – the Court Speaks (for now)

The Internal Revenue Service was handed a defeat with respect… Read more »

Jul 23, 2018

IRS Service Offerings – Available to Some, Not All

U.S. citizens abroad are burdened with the same federal tax… Read more »

Jul 11, 2018

U.S. Sales Tax – Update: The Streamlined Sales and Use Tax Agreement (SSUTA)

In light of the United States Supreme Court South Dakota… Read more »

Jul 04, 2018

New IRS Compliance Programs

On July 2nd, the IRS Large Business and International division… Read more »

Jun 25, 2018

Wayfair, you’re just what I don’t need South Dakota v. Wayfair, Inc. et al Major Changes Coming for U.S. Sales Tax

As Canadian companies grow their business into the United States… Read more »

Jun 06, 2018

The U.S. Repatriation Tax – IRS issues further guidance

On June 4, 2018 the IRS issued News Release IR-2018-131. … Read more »

Apr 09, 2018

What is my U.S. taxable year (as it relates to certain Canadian corporations)?

The recently enacted U.S. Tax Cuts and Jobs Act introduced… Read more »

Apr 03, 2018

IRS Provides Some Relief For U.S. Taxpayers Abroad in Meeting the Repatriation Tax Payment Deadlines

Yesterday, April 2, 2018, the IRS released Notice 2018-26, the… Read more »

Mar 27, 2018

Understanding U.S. Due Dates, Extensions and Payment Dates

The due date for a U.S. personal income tax return… Read more »

Mar 19, 2018

Understanding the U.S. Days Counting Test and U.S. Tax Residency

In most countries an individual’s tax residency is determined by… Read more »

Mar 15, 2018

IRS Announces the end of the Offshore Voluntary Disclosure Program though Streamlined is still around – for now

On March 13, 2018 the Internal Revenue Service announced (IR-2018-52)… Read more »

Mar 13, 2018

The importance of E&P – Will you be paying the right amount of tax to the IRS?

An accurate determination of “earnings and profits” (E&P) of a… Read more »

Feb 27, 2018

IRS Form 5472 : An easy but expensive filing obligation to overlook?

Recent media coverage, as it relates to U.S. tax in… Read more »

Feb 20, 2018

Understanding Constructive Share Ownership

The Tax Cut and Jobs Act (TCJA) has significant implications… Read more »

Feb 13, 2018

Changes to U.S. “Kiddie Tax” Rules

With both the increases in Canadian personal tax rates, over… Read more »

Feb 06, 2018

Do You Owe Money to the IRS? You May Lose Your US Passport

If you are a U.S. citizen and you have a… Read more »

Jan 29, 2018

Are you GILTI? New U.S. Rules Impact U.S. Individual Shareholders of Canadian Corporations

“An Act to provide for reconciliation pursuant to titles II… Read more »

Jan 15, 2018

U.S. Tax Reform – Deemed Repatriation Tax and Individual Shareholders of Canadian Corporations

On December 22, 2017 President Trump signed into law, “An… Read more »

Dec 08, 2017

U.S. Corporate Tax Reduction – Impact on CCPC shareholders – Part II (GRIP)

This U.S. Tax Tip follows up on the US Tax… Read more »

Nov 30, 2017

Proposed U.S. Corporate Tax Reduction – Impact on CCPC Shareholders

Both the U.S Republican House and Senate tax plans (The… Read more »

Nov 20, 2017

Has Your ITIN Expired?

If you are a US nonresident alien and have filed… Read more »

Nov 15, 2017

U.S. Tax Reform – Is It Permanent?

Ever since President Trump announced his candidacy for President, both… Read more »

May 25, 2017

FATCA and Catch up Filing – Is the end in sight?

Since 2009, the U.S. Internal Revenue Service (“IRS”) has had… Read more »

Mar 27, 2017

Foreign Bank Account Reports – Make Sure to File Them

A United States person is required to file FinCEN Form… Read more »

Mar 17, 2016

Canadian Mutual Funds

Although this topic has been extensively covered in the Canadian… Read more »

Jan 11, 2016

Changes to FIRPTA under the PATH Act

On December 18, 2015, President Obama signed into law the… Read more »

Dec 23, 2015

U.S. Employees and IRS Form 1095-C

“Employer-Provided Health Insurance Offer and Coverage” In general, absent any… Read more »

Nov 18, 2015

NY Corporate Tax Changes

The 2014-15 New York State Budget, enacted on March 31,… Read more »