US Tax Returns
Did you know that U.S. citizens are required to file annual U.S. tax returns and related forms, regardless of where they reside? This obligation only ends after formally renouncing U.S. citizenship (which requires being up to date on all U.S. tax filings). Canadian residents who earn income or work in the United States must also file U.S. tax returns, in addition to their Canadian tax filing obligations. Check out our FAQ section below for more information.
With over 30 years of U.S. tax experience, CIS is one of the longest-standing U.S. tax providers in the Niagara Region. We are also a Certified Acceptance Agent for the IRS, meaning that we can conveniently assist with U.S. individual taxpayer identification number (ITIN) applications for those with U.S. filing requirements.
For your convenience, you can use our US Tax Return Checklist to gather any pertinent information relating to your US tax return, or our FBAR & 8938 Reporting Template to summarize the information needed for your FBAR and/or FATCA reporting. Please include this information/documentation when providing us with your tax return documents.
New client? Please use our Contact Form to get started.
U.S. Citizens & Dual Citizens
Citizens of the U.S. that live in Canada must file annual U.S. tax returns, even if they have no U.S. sourced income and have income from Canada. U.S. citizens are also subject to additional mandatory reporting (such as FBAR and FATCA reporting).
We simplify U.S. filings and minimize or eliminate double taxation through treaty applications and foreign tax credits.
Cross-Border Workers
Canadians who work in the U.S. (or for a U.S.-based company) are required to file annual U.S. Federal non-resident tax returns and potentially U.S. State tax returns.
We provide comprehensive cross-border tax services to ensure full compliance with both Canadian and U.S. tax laws.
U.S. Real Estate Sales
Canadian residents who sell U.S. real estate are generally subject to “FIRPTA” withholding and must file a non-resident U.S. tax return in the year of sale to report the sale of their U.S. property.
Our U.S. team ensures proper reporting, recovery of excess withholding where applicable, and full compliance with U.S. tax rules.
If I am a U.S. citizen but never lived in the U.S. and never had U.S. income, do I still need to file a U.S. tax return?
The short answer is: yes.
As a U.S. citizen, you are generally required to file a U.S. tax return, even if you have never lived in the United States and have no U.S. sourced income. While there are limited exceptions if your income is below the filing threshold (adjusted annually), you still must stay compliant with all disclosure reporting requirements (such as FBAR or FATCA).
Most individuals in this situation can file under the “Streamlined Filing Compliance Procedures”, which are designed for taxpayers whose failure to file was non-willful. This process requires filing the last three years of U.S. tax returns and last six years of FBAR filings (if required).
If you are in this situation, please contact us for additional information and we would be happy to guide you through the process to ensure you are compliant with IRS.
What is an “FBAR” and do I need to file?
If you are a U.S. citizen or U.S. resident and have a cumulative total of $10,000 USD or more at any point in the year across your non-U.S. based accounts (such as checking’s, savings, non-registered investments, or registered investment accounts such as RRSP/TFSA/RESP/FHSA/etc.) you are required to file a FinCEN Form 114 (FBAR).
The purpose of the FBAR is to combat tax evasion and is submitted directly to the U.S. Treasury Department’s Financial Crimes and Enforcement Network. The FBAR must be filed annually by October 15th to avoid late-filing penalties. Penalties can total $10,000 per year, even if you did not know you were required to file!
I am a Canadian citizen/resident working in the United States. Do I need to file a U.S. tax return?
Yes. If you earn income from working in the U.S. or working for a U.S. employer, you are required to file a U.S. tax return.
I am a Canadian resident and sold U.S. real estate. Do I have to file a U.S. tax return?
Yes. The sale of U.S. real estate by a U.S. non-resident is subject to U.S. tax. The buyer is generally required to withhold 15% of the gross sales price and remit it to the IRS (unless an exception is met). You must file a non-resident U.S. tax return to report the sale, determine the actual tax liability, and claim a refund if too much was withheld, or pay any required tax to IRS if too little was withheld. You are still required to file even if there is no gain on the property, or if there is no tax to be paid.
I am a Canadian with U.S. filing requirement but no Social Security Number. How do I get a taxpayer identification number (ITIN)?
If you are not eligible for a Social Security Number, you must apply for an Individual Taxpayer Identification Number (ITIN) to file a U.S. tax return. Our office has a Certifying Acceptance Agent accredited by IRS, which means we can assist with applying for your ITIN and validating your identity for the application (as required by IRS). This would be done at the same time as filing your U.S. tax return.
What is the due date for filing a U.S. tax return?
The normal U.S. filing deadline is April 15. However, if you live outside the U.S., you are allowed an automatic 2-month extension to June 15 to file your return and pay any tax due. You can also request an additional extension to October 15 by filing Form 4868. Please note that interest still accrues from April 15 on any unpaid tax.