CRA blocks calls, often gives taxpayers wrong information, auditor says

A Globe and Mail article dated November 21st states that Canada’s Auditor-General, Michael Ferguson,  found that Revenue Canada blocked over half their outgoing calls. That’s 29 million calls from taxpayers that get a busy signal, a “call back later, or a “please visit our website”.

Furthermore, Micheal states that Revenue Canada provided wrong answers to taxpayers at a rate of nearly 30%.

see the article here.

IRS Simplifies RRSP Treaty Benefit Election For U.S. Citizens

The IRS recently released a new Revenue Procedure regarding U.S. citizens and residents holding Canadian Registered Retirement Savings Plans (RRSP) and Registered Retirement Income Fund (RRIF). The IRS has simplified some of the reporting requirements for these taxpayers.

In the past, filing a 1040 tax return for a taxpayer who held RRSPs required the filing of form 8891 for each and every RRSP and RRIF account owned by the taxpayer.


Important filing deadline for U.S. citizens’ reporting requirements

For U.S. Citizens living and working in Canada.

The Bank Secrecy Act requires U.S. taxpayers to file special reports if they hold a financial interest in, or signature authority over, a foreign financial account, including:

  • Bank accounts
  • Brokerage accounts
  • Mutual Funds (not held in US based brokerages)
  • Foreign Trusts
  • Other financial accounts; such as RRSPs, RRIFs, TFSAs, etc..

This report is due by June 30th each year.

Who Must File?

  1. U.S. Taxpayers must file an FBAR (Financial Bank Account report) if: The taxpayer had a financial interest or signature authority over at least one financial account (see above) located outside of the United States; and
  2. The aggregate value of ALL foreign financial accounts exceeded $10,000 at ANY time during the calendar year. Affected taxpayers include US citizens; US residents (green card holders); entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the US or under the laws of the US, and trusts or estates formed under laws of the US. Exceptions

Certain exceptions do exists.

To review if you qualify, please contact our office.