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IRS is going after taxpayers abroad including Canadians

IRS says it now plans to invest time and resources catching non-compliant Canadians and taxpayers abroad elsewhere with regards to forms commonly applicable to that specific group of taxpayers - ones unfortunately also commonly missed. It will focus on: Form 3520/3520-A Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts (a gift of more than $100,000 from a non-resident alien individual) Forms 1042/1042-S Withholding - such as on payment from renters of USA property Nonresident Alien Tax Treaty Exemptions - improperly claim treaty benefits and exempt U.S. source income from taxation Nonresident Alien - proper deduction of eligible expenses including

2018 extensions valid through (read on) filed for 1040 (including USC Abroad) & 1040NR returns

IRS 1040NR instruction: If you did not receive wages as an employee subject to U.S. income tax withholding, file Form 1040NR by the 15th day of the 6th month after your tax year ends. A return for the 2017 calendar year is due by June 15, 2018. If you cannot file your return by the due date, file Form 4868 to get an automatic 6-month extension of time to file. Comment: Misleading to sound like extension works to 12-15, whereas IRS 4868 instruction & Pub. 54 indicate only until 10-15 when letter request not made. IRS 4868 instruction: Generally, we can’t extend the due date of your return for more than 6 months (October 15, 2018, for most calendar year taxpayers). However, there may be an exc

Penalty Relief for the Procrastinating US Rental Property Owners Return Filing

So, you're a Canadian, or other non-US citizen, who owns and rents out US property, hasn't yet obtained an ITIN and you don't expect to make your June 15, 2018 1040NR filing due date. No worry, go ahead and file an extension request on Form 4868 by writing “ITIN to be requested” on SSN line of form. Note - if US tax is due and paid after June 15, then the late payment penalty (usually ½ of 1% of any tax) and related interest does arise. But your extension is assisting you regarding the late filing penalty (usually 5% of the amount due for each month or part of a month your return is late; the maximum penalty is 25%) that is usually charged if your return is filed after the due date - as such

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