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US back taxes help (2003 - 2010)
Gilbert0
North of SeattleRegistered User regular
North of SeattleRegistered User regular
I'm a US / Canadian dual citizen living in Canada. Since age 9, I have only visited the US once and basically ignored my American obligations. I have never worked in the US.
Apparently, the US / IRS is weird with it's tax law and even though I've never worked in the US, as a US citizen, I'm supposed to be filing US tax returns for every year I've filed Canadian ones. I do not expect to pay tax (there is a line item for income earned in a foreign country), I just need to become current with the IRS with my paperwork.
Looking online, there are services that will do this for me but will basically charge me $2,200+ to do it all for me because I go back so far. I'd rather just buy something like TurboTax for each year and do it myself ($50 x 8 years is $400, a lot less than $2200).
Can anyone recommend a US product that has versions back that far? or alternatively can anyone recommend a good US accountant/company that will deal with a Canadian by email/phone? or any other online service that will do it for say under a $1000.
Gilbert0 on
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Home Inspection and Wind Mitigation
http://www.FairWindInspections.com/
Bank accounts are tricky though, so be cautious of that.
I've gone through the IRS's webpages and this is what I need to file unfortunatly. I need to do all my Federal Taxes. It's simple, basically all my income goes on 1 line. It's just I need to get the set of forms for each year and do it. Simpliest way without printing each year off individually is to use something like TurboTax.
The US GOV is actually being a massive ho in this circumstance, basically making US citizens living abroad prove that they don't owe any tax, regardless of whether they've ever worked or even lived in (or been to) the US, and they're doing it under the threat of massive fines and even jailtime for failing to report, even if the person actually owes nothing.
I'd recommend you get in contact with an accountant and/or Lawyer specializing in US Tax law and see if you can get a free consultation to find out what your responsibilities are in this situation.
Simply disowning your citizenship is, from what I've read, not a solution for the historical filings, they will still pursue you, except it should prevent the filing requirement for future years.
Exactly, it's the IRS trying to get back any money they can. For anyone else interested, look into OVDI (Offshore Voluntary Disclosure Initiative). The most recent one closed in Sept of this year but they guess there are close to a million Canadians alone in this same situation. I'm not unique, just trying to make it as simple as possible. One of the provicial premiers is in the same boat (think US state govenor). http://hodgen.com/new-brunswick-premier-is-in-the-ovdi/
This is another way to go yes but you have to file paperwork to do this as well. BEFORE they approve it, you have to be up to date with you're taxes. As well, I have family in the US and now that I'm working full time I'd be looking to actually visit and see them. Last thing I want to have is problems at the border in coming, or even worse leaving (pay or we won't let you go).
edit: how old are you? How many working years are you being require to file for, you mention 8 years of turbotax, so you've been receiving income for 8 years I assume. IF your gross income for a year is less than (for 2010) $9,350.00 then you're not REQUIRE to file a return. You of course CAN and a normal u.s. citizen probably should if they're expecting money back from payroll taxes taken out over the year by their employer for them. In your case if it was less than the minimum amount for each year (it will likley be lower and lower the further in years you go back) then you would not need to file. I only really mention this because you mentioned just recently moving to working full-time.
Typical I am not a Tax attorney/irs auditor disclaimer. So read this: http://www.irs.gov/publications/p54/ch01.html#en_US_2010_publink100047340
here's some of the numbers you should call
@November Fifth / tyrannus - I am actually going to end up calling them and talking to a human. According the IRS website, I need to basically prepare a full packet of stuff, though I'm in a different scenario then what they describe, as I don't live in the US. They might even have a product they prefer I use.
but they're listening to every word I say
This crazy person makes Excel spreadsheet versions of the 1040. If you have to fill out the 1040 and not the A or EZ version, I'd suggest these. I don't know if they have specific options for non-residents, but they have everything else under the sun.