# overseas streamlined procedure



## Lulu78

Hi all:
I have been lurking here for the past couple of days reading about expat tax, and I have finally decided to post to get your opinion/experience, so thanks in advance.
I was born in the US while my parents were completing their postgrad studies there (they never got a green-card and are not US citizens), we left the US when I was less than a year old. After collage, I decided to do a couple of years of working and travelling overseas and as a result I spent just over a year working in the US. I later returned home, got on with my career got married (to a non-US citizen) and got on with my life!
Fast forward just over 13 years later, a friend forwarded an article to me about FACTA/US taxing it’s citizens based on their worldwide income….and the more I read the more horrified I got, particularly as I read about the dreadful FBARs and the associated penalties! 
I have spoken to a couple of accountants and I am waiting for a couple of quotes regarding getting my affairs in order, and then perhaps considering renunciation. 
The accountant recommended using the overseas Streamlined Program, but I also read an article by the Isaac Brock Society which seems suspicious of this program due to a lack of clarity from the IRS regarding what is defined as “non-wilful” and also having to meet the “reasonable cause” standard . 
The accountant doubts very much that I would owe any taxes to the US due to the much higher taxes here (she also stated that it’s usually people who sell their family home tend to get caught out due to CGT tax not being charged on our primary residence here and this is something I should keep in mind for the future). 
What really worries me is the FBARs and associated penalties, as husband and I had been saving for a few years for a deposit on a house and we have a couple of hundred Ks in savings (not that this is enough for a house over here!). So the associated penalties could be steep?.
Anyhow, I would like to get your feedback/experience, are you aware of any issues with the “overseas streamlined procedure”? or am I handing them myself on a silver platter! I have read about quiet disclosures is that a good option? Or perhaps is it best to just sit tight and hope that they will improve the situation for expats? 
It’s all been very stressful since I’ve found out about this, but I also am trying to separate emotions and trying to make as informed decision as possible about what to do next.


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## BBCWatcher

Let's just say that fear is good for business. It sells newspapers, accounting services, society memberships, and gold bullion advertised on Fox News. ("On the News at 10, killer bacteria! It's hiding under your pillow, under your mattress, even under your underwear. Will your flesh eating bacteria death be slow, painful, or both? Also, how many babies do dingoes actually eat every month in Sydney, and is your baby next? But first, we'll take a look at Angelina Jolie's latest film project. Tune in at 10.")

Step one: calm the (bleep) down. 

Step two: take a look at the other threads in this forum on this same topic. You are quite correct that the chances of your owing any U.S. tax as a resident of Australia are vanishingly low. (Heck, you might even get paid to be American. That happens.) The IRS does not charge any penalties for late or non-filed tax returns if you live overseas (you do), you genuinely owe zero U.S. tax (almost certainly), and you only recently realized your oversight (check). Moreover, we have zero reports of anybody being charged a penalty by the U.S. Treasury for late filing of FinCEN Form 114 ("FBAR") when their late filing is explained (e.g. "I didn't know," which is quite popular), voluntary, and unprompted (i.e. Treasury didn't send you a letter first).

OK, add that all up and, to get fully compliant, here's what you do:

(a) File FinCEN Form 114 for 2014, 2013, 2012, 2011, 2010, and 2009. Explain why you're filing late. Problem solved.

(b) File FinCEN Form 114 for 2015 before it is due (June 30, 2016).

(c) File IRS Form 4868 to get an automatic extension to file your 2015 tax return.

(d) File 2012, 2013, and 2014 tax returns via the IRS's overseas Streamlined Program. Prepare those tax returns yourself, preferably using free or low cost tax preparation software. (There's a thread at the top of this forum explaining this year's offerings. H&R Block free edition is looking pretty good this year.) The Streamlined Program works. It's perfectly fine. You are the _textbook_ case for "non-willful."

(e) If you're under age 26 and male then visit Selective Service and register.

(f) Refer again to Step 1. 

Welcome back to the club.


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## Bevdeforges

Pretty much what BBC said. Basically, filing the FBARs is easy. You do it all online these days and frankly, it's an information report that probably won't be linked up to your tax returns any time soon unless your tax returns have some pretty egregious inconsistencies that happen to be noted by the IRS. You can probably knock out those 6 or 7 years of FBARs in a good evening's work - or over a weekend if you decide to take it slow and careful.

The tax returns can also probably be done without forking out money to a pricey tax accountant. Do the current year (2015) - either with tax preparation software or by hand - and see how you do. The key information booklets are Publication 54 and Publication 17. Even the tax software can be tricky if you aren't familiar with a few basic US tax terms and concepts, but if your financial situation is relatively uncomplicated, you should be able to sort it out on your own with a bit of effort.
Cheers,
Bev


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## Lulu78

Thanks for the response BBCWatcher & Bev. I will start by trying to locate my SSN! That should be a mission & a half (of going through old papers in my parents' attic!).
I will take your advice & start with my FBARs. Apologies if this has been answered somewhere else but as I will be going back a good 6-7 years, I want to check do I have to go & work out my balances every single day of the year for the past 7 years to determine the highest balance for that particular account? Or are there another acceptable method? The monthly balance on each statement?


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## ForeignBody

Lulu78 said:


> Thanks for the response BBCWatcher & Bev. I will start by trying to locate my SSN! That should be a mission & a half (of going through old papers in my parents' attic!).
> I will take your advice & start with my FBARs. Apologies if this has been answered somewhere else but as I will be going back a good 6-7 years, I want to check do I have to go & work out my balances every single day of the year for the past 7 years to determine the highest balance for that particular account? Or are there another acceptable method? The monthly balance on each statement?


The monthly balances are fine, unless there were some dramatic changes within a month. (eg someone might have a large sum coming into an account and going out in the same month in relation to a house sale/purchase). Don't get too hooked on the detail. As long as you give a fair approximation of the account, and overestimate somewhat if you are not sure, you will be OK.

Note that you convert to US$ by using the Treasury Exchange Rate as at December 31 for each year.

As others have said, don't panic. The streamlined procedure is for people exactly like you.


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## Bevdeforges

You can use the highest of the monthly statement balances. Or you can estimate it based on an overview of the activity for the year. If you estimate, I'd bump up whatever "high balance" you come up with by $5000 or $10000 just to be sure. (There is no penalty for over reporting - and since the FBARs don't generate a tax liability there is no harm in so doing.)
Cheers,
Bev


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## Nononymous

You also have the option of ignoring this. You're in the same boat as half a million non-compliant Canadians with dual citizenship. I would look into the legal situation in Australia, but in Canada the US government basically cannot collect a dime from Canadian citizens. If you aren't planning on moving to the US or spending large amounts of time there, and you don't have US assets, then you can cheerfully stop worrying about this. Ideally Australian banks won't try very hard to comply with FATCA - if they ask about citizenship, lie, provided they don't want to see your place of birth. Right now you're off the radar - think long and hard before you get back on.

One piece of good news: based on the timelines you've given, your children will not automatically inherit US citizenship.


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## byline

ForeignBody said:


> Note that you convert to US$ by using the Treasury Exchange Rate as at December 31 for each year.


With my FBARs I have done this somewhat differently. I take the date of the highest balance, then go to Yahoo's currency converter, enter that date and the amount in Canadian dollars, then use the exchange rate displayed for that date. Especially for 2015, it actually bumped up each of my totals, because the Canadian dollar just kept going down, down, down relative to the U.S. dollar. I figure if I'm using the actual date of the balance (and it's a bit higher than it would have been as of Dec. 31), I'm on solid ground.

This strategy doesn't work for my U.S. tax return, though, as they are looking for the yearly average. So I used the IRS's foreign currency converter table for that.


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## ForeignBody

byline said:


> With my FBARs I have done this somewhat differently. I take the date of the highest balance, then go to Yahoo's currency converter, enter that date and the amount in Canadian dollars, then use the exchange rate displayed for that date. Especially for 2015, it actually bumped up each of my totals, because the Canadian dollar just kept going down, down, down relative to the U.S. dollar. I figure if I'm using the actual date of the balance (and it's a bit higher than it would have been as of Dec. 31), I'm on solid ground.
> 
> This strategy doesn't work for my U.S. tax return, though, as they are looking for the yearly average. So I used the IRS's foreign currency converter table for that.


OK, but the instructions say to use the Treasury Rate of Exchange as at December 31, even though the maximum will almost always be at some other point in the year.

https://www.fiscal.treasury.gov/fsreports/rpt/treasRptRateExch/currentRates.htm


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## byline

ForeignBody said:


> OK, but the instructions say to use the Treasury Rate of Exchange as at December 31, even though the maximum will almost always be at some other point in the year.
> 
> https://www.fiscal.treasury.gov/fsreports/rpt/treasRptRateExch/currentRates.htm


True. Back in 2011, when I first started my own FBAR/U.S. tax return journey, the accountant who helped me catch up basically said, "Pick a number." He was kidding, and I would never go as far as that. But I think as long as the numbers are accurate, and we're putting forth a good-faith effort to be as accurate as possible, then we should be OK.


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## Lulu78

Nononymous said:


> You also have the option of ignoring this. You're in the same boat as half a million non-compliant Canadians with dual citizenship. I would look into the legal situation in Australia, but in Canada the US government basically cannot collect a dime from Canadian citizens. If you aren't planning on moving to the US or spending large amounts of time there, and you don't have US assets, then you can cheerfully stop worrying about this. Ideally Australian banks won't try very hard to comply with FATCA - if they ask about citizenship, lie, provided they don't want to see your place of birth. Right now you're off the radar - think long and hard before you get back on.
> 
> One piece of good news: based on the timelines you've given, your children will not automatically inherit US citizenship.



Thanks Nonoymous; I think you are fortunate in Canada because there is a large expat community, large enough to turn this into an election issue and lobby the government. The situation here seems to have received very little attention and there is no clarity wether that Australian government will collect taxes or penalties on behalf of the IRS. Although any government that would collect "extra tax" or penalties on income earned and taxed earned in this country and send it to the IRS/US, seems extremely stupid because this is all money that they ate diverting from their local economy! Also, should they collect any FBAR penalties that could effectively ruin it's citizens, then those citizens will become a liability/extra burden on the Australian government and tax payers! 

I am thinking long and hard about coming up on the IRS's radar, to be honest I think if I do go ahead and get myself in compliance, I may as well use this as an opportunity to renounce my US citizenship! The only negative impact of me giving it up would be not having access to the US job market and not being able to go there on holiday. Regarding the US job market, honestly, I'd have to be massively desperate to want to work there again (having experienced it for a year in my youth), and regarding holidays, it's a big wide world out there full of wonderful holiday destinations! 

I am also thinking, it maybe a good idea to come into compliance now, and beat the queues before lots of other "accidental Americans" like me find out about expat-tax and FBAR penalties. Who knows when that happens, the US government may bump up the renounciation fee even higher! 

If I do renounce, then husband and I will still have three citizenships between us (Aussie/Kiwi/British)....


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## Lulu78

Nononymous said:


> One piece of good news: based on the timelines you've given, your children will not automatically inherit US citizenship.


My future offspring will just have to settle for the Aussie/Kiwi/British ones that we will be passing on to them  and possibly Euro Disney or the Harry potter studios in London instead of Anaheim or Disney World, if I end not being able to travel to the US again!


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## Nononymous

Lulu78 said:


> My future offspring will just have to settle for the Aussie/Kiwi/British ones that we will be passing on to them  and possibly Euro Disney or the Harry potter studios in London instead of Anaheim or Disney World, if I end not being able to travel to the US again!


Renouncing would only mean that you'd have the same privileges as any other Aussie/Kiwi/Brit - you'd not be barred from the country.

The only thing you'd lose is guaranteed admission to the US for yourself.

(Conversely, any future children could easily obtain US citizenship if you spent three years there before they turned 18.)


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## Nononymous

Lulu78 said:


> I am thinking long and hard about coming up on the IRS's radar, to be honest I think if I do go ahead and get myself in compliance, I may as well use this as an opportunity to renounce my US citizenship!
> 
> ...
> 
> I am also thinking, it maybe a good idea to come into compliance now, and beat the queues before lots of other "accidental Americans" like me find out about expat-tax and FBAR penalties. Who knows when that happens, the US government may bump up the renounciation fee even higher!


This is the great puzzle. Even I, a keen supporter of willful non-compliance at the present time, occasionally have doubts about the best course of action going forwards.

Right now, the US does not know that you exist. You are off the radar. Becoming compliant and renouncing will be an expensive hassle, but will provide you the security of knowing that you won't ever owe the US any money in the future. Whether they could actually collect it is another question. 

It's a decision everyone has to make based on their individual circumstances and risk tolerance.


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## Nononymous

Lulu78 said:


> I think you are fortunate in Canada because there is a large expat community...


An aside... Most of us don't think of ourselves as expats. We're Canadian citizens who happen to have another citizenship due to accident of parentage or birth, or who naturalized decades ago and assumed that US citizenship was lost in the process. 

In the former case, particularly, it doesn't lead to much interest in obeying US tax obligations.


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## maz57

Lulu78 said:


> If I do renounce, then husband and I will still have three citizenships between us (Aussie/Kiwi/British)....


If that's the case, then this is the perfect opportunity to cull the least desirable/most problematical one....US citizenship. Having the citizenship of a first world country is generally a good thing, but unfortunately, US citizenship is becoming increasingly troublesome if you don't actually live in the US. Its not likely the present trend is going to be reversed anytime soon.


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## Lulu78

Thank you all! You have all been very kind sharing your experience and opinions with me! I have started the journey this week by contacting my bank and asking for statements dating back to 2009 ! 

I will keep you posted once it's done and dusted or if I run into any issues so hopefully others can also benefit from my experience.


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## Lulu78

Hi again:
I have a question regarding the revised streamlined certification form for the SFOP (14653). I was wondering if BBC watcher, Bev, or anyone else can help with this.

Has anyone completed this updated form recently? It seems that The IRS have updated it the from (in Feb this year) requesting an enlarged narrative and asking for specific reasons (wether favourable or unfavourable?).

1. What are narrative statement of facts? Basically, if you say that you have been living overseas for the last decade, didn't know you had to file, you just found out about your filing requirements on XX date via an article in the paper date XX. You have met all your tax obligation in your country of residence, and all your income is earned outside of the US and you have no US source income...etc. Is that enough? would this be considered a statement of fact? How do you prove that your are non-wilful?

2. Also does anyone know, if you do complete the certification but the IRS are not satisfied, will they let you know? or will they contact you requiring more information?

3. Say if the IRS are not happy with the certificate and you are not subjected to the SFOP, will you be subjected to an audit? 

Thank you in advance


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## BBCWatcher

1. Sounds good to me, as long as it's a truthful statement.

2. I'm sure the IRS will be in touch, via postal mail, if they have any questions or concerns.

3. That's up to the IRS. The IRS can audit me, you, Bev, or anybody within its purview, inside or outside a Streamlined Program filing, at any point in time. An "audit" is a fancy word meaning some form of further investigation or inquiry. It can be a quite basic, perfunctory audit (e.g. a short letter in the mail with one question or a simple request for some documentation), or it can be more involved. The IRS doesn't conduct many audits, but they conduct some.


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## Lulu78

BBCWatcher said:


> (a) File FinCEN Form 114 for 2014, 2013, 2012, 2011, 2010, and 2009. Explain why you're filing late. Problem solved.
> 
> (b) File FinCEN Form 114 for 2015 before it is due (June 30, 2016).
> 
> (c) File IRS Form 4868 to get an automatic extension to file your 2015 tax return.
> 
> (d) File 2012, 2013, and 2014 tax returns via the IRS's overseas Streamlined Program. Prepare those tax returns yourself, preferably using free or low cost tax preparation software. (There's a thread at the top of this forum explaining this year's offerings. H&R Block free edition is looking pretty good this year.) The Streamlined Program works. It's perfectly fine. You are the _textbook_ case for "non-willful."


Hi all; I was wondering if someone could help me (clarify) the above; regarding filing the late FBARs/tax returns as BBC watcher suggested, 

a) Do I need to wait until I complete my taxes for the SFOP, and file them all together? or do I go ahead and file the late FBARs (as I am nearly done with them)

b) Also, when I file the FBARs do I select "I didn't know" or do I select "other, and then type streamline foreign offshore procedure"?

C) Is there any advantages (or repercussions) to doing things one way or the other? Filing late FBARs first ASAP, then dealing with the late tax returns, or just doing everything all in one go?

I hope, my questions make sense....


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## BBCWatcher

Lulu78 said:


> a) ....or do I go ahead and file the late FBARs (as I am nearly done with them)


You file the FinCEN Form 114s first regardless of whether you're submitting tax returns for the Streamlined Program or filing ordinary, late (or amended) tax returns. It's the same process either way.



> b) Also, when I file the FBARs do I select "I didn't know" or do I select "other, and then type streamline foreign offshore procedure"?


You answer that question (and all others) truthfully. If "I didn't know" is the truth, then I'd pick that.


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## Lulu78

BBCWatcher said:


> You file the FinCEN Form 114s first regardless of whether you're submitting tax returns for the Streamlined Program or filing ordinary, late (or amended) tax returns. It's the same process either way.
> 
> 
> You answer that question (and all others) truthfully. If "I didn't know" is the truth, then I'd pick that.


Thanks BBC, "I didn't know", it is then


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## iota2014

Lulu78 said:


> ...when I file the FBARs do I select "I didn't know" or do I select "other, and then type streamline foreign offshore procedure"?


If submitting the FBARs for Streamlined, select "other" and then type streamlined foreign etc. That will tell the automated system that these FBARs are to be processed under the Streamlined Procedures.

If you choose "Didn't know I had to file", the FBAR form won't be treated as a streamlined submission.


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## iota2014

BBCWatcher said:


> You answer that question (and all others) truthfully. If "I didn't know" is the truth, then I'd pick that.


Truthfulness is not at issue here, since both options are true.



> For each of the most recent 6 years for which the FBAR due date has passed, file delinquent FBARs according to the FBAR instructions and include a statement explaining that the FBARs are being filed as part of the Streamlined Filing Compliance Procedures. You are required to file these delinquent FBARs electronically at FinCen. *On the cover page of the electronic form, select “Other” as the reason for filing late. An explanation box will appear. In the explanation box, enter “Streamlined Filing Compliance Procedures.”* If you are unable to file electronically, you may contact FinCEN's Regulatory Helpline at 1-800-949-2732 or 1-703-905-3975 (if calling from outside the United States) to determine possible alternatives to electronic filing.


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## BBCWatcher

I'm OK with either approach, but if you're quite sure you'll be submitting into the Streamlined Program then I prefer the "Other / Streamlined..." option.


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## ForeignBody

The Streamlined procedures actually tell you: _..On the cover page of the electronic form, select “Other” as the reason for filing late. An explanation box will appear. In the explanation box, enter “Streamlined Filing Compliance Procedures.”_


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## iota2014

ForeignBody said:


> The Streamlined procedures actually tell you: _..On the cover page of the electronic form, select “Other” as the reason for filing late. An explanation box will appear. In the explanation box, enter “Streamlined Filing Compliance Procedures.”_


Indeed - as already quoted in the post BBCWatcher was replying to. 

Easy to understand the impulse of Streamlined FBAR filers to choose an option that indicates nonwilfulness. But there is no need to worry on that score. The dropdown list of reasons is pretty clearly there to aid the routing of the submission through the automatic processing system so that it lands in the right place to be united with the person's paper Streamlined bundle. The noxious Streamlined certification form, which offers plenty of opportunities to swear nonwilfulness, will apply to the submission as a whole - electronic FBARs and paper returns.


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## ForeignBody

iota2014 said:


> Indeed - as already quoted in the post BBCWatcher was replying to.


Ah yes... missed that!


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## Pro.wolf

Has anyone completed the streamlined offshore program filing? I just completed mine by sending my forms and filing FBAR , I used a CPA that cost me more than 6 months mortgage payment - but that is another story. I have been living and paying taxes in Canada for 10yrs.

CPA determined I owe 71 USD in taxes in total for the three years for some dividends in USA even though I paid taxes for those in Canada. I paid the amount online before sending the printed forms. 
Now what? Does anyone knows? 
How long will take to heard back from IRS? (In case they don't agree with info on the forms?) I have been reading and I saw forms will be processed like any regular filing but no penalties would be assessed and IRS has 3 years to audit.

I paid the cpa to have this done correctly and don't have issues with the IRS Hiwever, not sure if they did a good job, I don't understand all this foreign credit calculations, why I have to paid taxes on something I already paid taxes in Canada, etc. I guess I have to trust them. 

Also, , I had to file as married filing separetely (my spose is Canadian never work or live in USA and refused to report his income to IRS - I don't blame him) - anyone on same situation?



Any one has any experience with this type of filing to share


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## Lulu78

Hi Pro.Wolf:

Welcome to the club. If you haven't figured it out by now, then let me tell you apparently we are in the same boat as millions of other expats (and I use the term expat very loosely) who had no idea they had to file their taxes to the US!


I'm in exactly the same situation as you but I haven't filed yet ( still in the process of getting things together). I have just instructed an accountant as well, as in the end I decided that it was too stressful to do it myself (and I am also planning on renouncing, so the accountant will help me tidy things up before I do that!). I will be going the streamline + 2015 on time + 2016 next year and I will renounce in early 2017 hopefully.

Its costing me $$ but if I hadn't made the decision to go ahead and renounce, I would have probably tried to figure it myself as there is no way I'd be able to sustain the cost every year! 

My accountant also told me that I am fortunate to (never have known and therefore) never have filed, this makes my case "somewhat" straightforward! Apparently compliance is hard or costly therefore a lot of people fall of the band wagon, and she has warned me that if I decided not to renounce then I should make sure that I remain compliant! 

I am doing the FBARs myself though (not through the accountant). 

My husband is not a US citizen, therefore I am also filing as "married filing separately"

The accountant has said that basically "no news is good news" regarding the streamline. So the IRS will not contact you to let you know if you are accepted/rejected....

Also just to put your mind at ease, iota24 has kindly posted a very good article regarding non-wilful FBAR penalty mitigation (search the forum for it)!

I would really appreciate it (and I am sure lots of others like us will) if you could report back regarding your Foreign Streamline experience (even if to say it's been a while and I have heard nothing!). This is what I am planning to do to help others


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## Bevdeforges

Basically, at this point you wait. If the IRS has any questions, they'll be in touch (by postal mail). If you get past the 3 year mark with no communication from the IRS, then you're good to go. But honestly, if you only owed them $71 (rightly or wrongly), they're not going to waste much time on scouring your returns for problems or errors.

Assume everything has gone well until and unless you heard differently through official channels. 
Cheers,
Bev


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## Lulu78

Pro.wolf said:


> CPA determined I owe 71 USD in taxes in total for the three years for some dividends in USA even though I paid taxes for those in Canada.


Is it because the dividends is considered a US income and therefore the US has first dibs on it? then in that case you should have paid the dividends tax to the US in the first place? and you might be able to get a credit it for it form Canada?

I have a similar situation with NZ shares, which then I get a credit for that Tax in Australia.


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## Pro.wolf

Thanks Lulu, I will report back any updates I get.

Now, I am trying to figure out if I should have filed form 3520...this is a do no effect and feels there is not end


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## Pro.wolf

Lulu78 said:


> Is it because the dividends is considered a US income and therefore the US has first dibs on it? then in that case you should have paid the dividends tax to the US in the first place? and you might be able to get a credit it for it form Canada?
> 
> I have a similar situation with NZ shares, which then I get a credit for that Tax in Australia.


I have to file Canadian taxes first and I have to declare all foreign income to Canada. Is a vicious cycle. I just paid and hope is done. Will see how much I have to double pay for 2015


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## Lulu78

Pro.wolf said:


> Thanks Lulu, I will report back any updates I get.
> 
> Now, I am trying to figure out if I should have filed form 3520...this is a do no effect and feels there is not end


Hopefully one of the more technical members of this forum will be able to comment on this!

All I know about form 3520 (3520a), is that we do use it when we report a foreign trust or if you receive a distribution from a trust. I will have to use it for one of my years because I received a distribution from a trust for that year! 

I think you also use 3520 it if you receive a gift?


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## Lulu78

Pro.wolf said:


> I have to file Canadian taxes first and I have to declare all foreign income to Canada. Is a vicious cycle. I just paid and hope is done. Will see how much I have to double pay for 2015


You shouldn't have to double pay (theoretically) as there is a tax agreement between the two countries


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## Pro.wolf

Lulu78 said:


> Is it because the dividends is considered a US income and therefore the US has first dibs on it? then in that case you should have paid the dividends tax to the US in the first place? and you might be able to get a credit it for it form Canada?
> 
> I have a similar situation with NZ shares, which then I get a credit for that Tax in Australia.





Lulu78 said:


> Hopefully one of the more technical members of this forum will be able to comment on this!
> 
> All I know about form 3520 (3520a), is that we do use it when we report a foreign trust or if you receive a distribution from a trust. I will have to use it for one of my years because I received a distribution from a trust for that year!
> 
> I think you also use 3520 it if you receive a gift?


I have a RESP (education savings plan) in Canada for my daughter. All funds are deposited after taxes in a deposit account (interest I got last year was 3.55 CAD). I read that this type of account could be considered a foreign trust. No distribution received, my daughter is a toddler and will not be able to use the money until she goes to college. Waiting for accountant to reply.

My TFSA was opened as savings acct not trust, I have all funds in Canadian mutual funds, my interest was close to 2 CAD dollars, yes 2 Canadian dollars. (I had acct for 14 months with 1k CAD)

I hope no need to file 3520.


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