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  • Daniel Gray CPA US Tax Services Toronto Canada

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 Sch A itemized

  • NRA Tax Credits - erroneous claims of dependent (e.g., kids, spouse) tax credits or education credits only available to U.S. persons


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