U.S. Tax and Cross-Border Tax Services for Individuals
We help individuals with their U.S. tax and international tax planning and compliance needs. Canadians who work in the United States or have U.S. source income, be it from a U.S. real property they rent or their investments, often are faced with U.S. tax and cross-border tax issues that, if not addressed, may lead to double taxation or higher taxes and penalties.
By the same token, U.S. citizens and Green card holders who live in Canada or outside the United States are faced with much more complex international tax rules and are not always able to resolve those issues on their own. Whenever you are involved in a cross-border transaction, we are here to help you tackle your U.S. tax and cross-border tax compliance and planning needs.
Individual U.S. Tax Planning
- Treaty positions, Planning, Income
Characterization and Sourcing of Income
- Personal and Investment Real Estate
Properties in the U.S. and Abroad
- Tax Planning and Compliance for
Canadian Residents with a U.S. connection
- Estate, Gift, and Trust Tax Services
- Tax planning for Individuals
Who Are Moving to the United States
- Review of Estate Planning Documents
for Tax Compliance
- Stock Option Election Planning
- Assessment of Retirement Options
with 401(k) and IRA
- Real Estate Services
Treaty positions, Planning, Income Characterization and Sourcing of Income
Personal and Investment Real Estate Properties in the U.S. and Abroad (Planning for tax effective structures for individuals)
Tax Planning and Compliance for Canadian Residents with a U.S. connection
- When you own or operate a business that is engaged in a trade or business within the United States
- Certain gambling winnings, royalties, interest, dividends, pensions and annuities, scholarships and grants which are not withheld because they are categorized as not effectively connected to a U.S. trade or business
- Rent from real estate you own or operate in the United States (filing of W8-ECI or Form 1042-S if necessary)):
- You are selling your U.S. based real estate
- You are a student in the United States;
- You have been present in the U.S. for a period of time that you become a U.S. tax resident for U.S. tax purposes.
Estate, Gift, and Trust Tax Services for Individuals and Business Owners
Estate and Gift tax planning will assist in transferring your wealth to the next generation in a tax-efficient manner while maintaining your specific distribution plan. Our team can assist in the consultation, planning, compliance and planning aspects of this highly sensitive area of estate planning. Proper tax planning can save your heirs both time, money and alleviate any compliance concerns they may have, especially when your estate has assets that cross the border.
U.S. estate taxes in a cross-border context
Things to consider when estate planning include:
- Qualified Personal Residence Trust;
- Grantor Retained Annuity Trust;
- Grantor Retained Unitrust;
- Irrevocable Life Insurance Trust;
- Limited Liability Company;
- Limited Partnership;
- Qualified Terminable Interest Property Trust;
- Charitable Trust.
- Forms 3520 and Form 3520A
- Form 709 – Gift (and Generation-Skipping Transfer) Tax Return
- Form 706 – Estate (and Generation-Skipping Transfer) Tax Return (including nonresident alien return)
- Form 1041 – Income Tax Return for Estates and Trusts (including nonresident alien return)
Tax planning for Individuals Who Are Moving to the United States
For Canadian individuals who plan on moving to the United States there are two areas of concern, immigration and tax. When engaging an immigration lawyer to help get you access to the United States, you may not gain a full understanding of the tax implications. Our team of professionals can help you understand the tax implications of moving, can assist in pre-planning and structuring so that your move leads to a seamless tax event and assist in ongoing compliance with U.S. tax laws.
Review of Estate Planning Documents for Tax Compliance
U.S. citizens, U.S. Green Card holders or Canadians with U.S. family members may be unaware that their estate planning may be subject to U.S. gift and estate tax laws. Understanding whether you are subject to these laws is half the battle. The other half is understanding the implications of these tax laws and creating an estate plan that will pass your wealth to your beneficiaries in a tax efficient manner. This can range from having simple wills to complex trusts with various cross border elements. Our team of professionals can review your estate plan, with you and your estate planning advisors, to help you understand whether your estate will be subject to U.S. gift and estate tax laws and what you can do to mitigate your exposure.
Stock Option Election Planning
Oftentimes employers provide employees with an incentive strategy of granting them the right to acquire shares of stock in a company at a fixed price for a period of times. This benefit, can lead to lucrative profits for employees in emerging companies. U.S. individuals wanting to reap the benefits of these stock options are cautioned into understanding the tax implications of these options. Our team of professionals can help evaluate your situation and help you understand the implications of exercising your stock options.
Assessment of Retirement Options with 401(k) and IRA
Real Estate Services
Canadian citizens wanting to invest in U.S. real property are oftentimes advised by U.S. lawyers, situated in the United States, as to how to properly acquire their property. Individuals hear of special trust structures or investment vehicles that can ‘shield you from tax or liability.’ Although these individuals or professionals may be trying to help, they often do not understand the implications for a Canadian citizen who is investing in U.S. real property. Our team of professionals can assist in understanding your needs and desires in purchasing U.S. real property and along with the Law Office of Alexey Manasuev we can handle all aspects of your purchase.
Our team of professionals can assist you in the complexities of cross border real estate purchase and sale. From the first states of reviewing and advising on contracts, liaising with real estate agents and drafting closing documents to assisting in the sale of your U.S. property by explaining the complexities of FIRPTA to closing agents, drafting closing documents, including FIRPTA withholding documents to assist in reduced withholding where possible and having you the client sign closing document in Canada. Our team can make this transition to owning or selling your U.S. property as seamless as possible. We also prepare necessary documents, such as power of attorney documents and other estate planning documents to help minimize the complexities of owning property in a foreign jurisdiction. Our Canadian notary services allow our client the ability to close on their property from the comfort of our offices in Canada.
Individual U.S. Tax Return Preparation
- U.S. Individual Tax Returns and
Foreign Bank Account Report Preparation
- Determination of Tax Equalization for
U.S. Citizens Living in Canada
- IRC Section 911 - Foreign Earned
Income Exclusion & Qualified Housing
Expenses Deduction – Form 2555
- Foreign Tax Credit (FTC) and
Deduction for Foreign Taxes Paid
- Determination of U.S. Residency
Issues and ‘Closer Connection’ filings
- Do You Own a Bank Account
Outside of the US?
Shareholder of a non-U.S. Company?
- SFCP and OVDP
- ITIN Services
- Gambling US Taxes Refund
- Immigration and Family Matters
- U.S. Green Card Holder and a
Citizen and Tax Resident of Another Country
Preparation of U.S. Individual Tax Returns and Foreign Bank Account Report
- Preparation of U.S. Nonresident Alien Income Tax Return (Form 1040NR) for US rental income, capital gains from real property, salary income, and business income;
- Preparation of U.S. Individual Income Tax Return (Form 1040), and individual state income tax returns if necessary;
- Form FinCEN 114, Report of Foreign (non-US) Bank and Financial Accounts
Determination of Tax Equalization for U.S. Citizens Living in Canada
IRC Section 911 - Foreign Earned
Income Exclusion & Qualified Housing
Expenses Deduction – Form 2555
IRC Section 911 - Foreign Earned Income Exclusion & Qualified housing expenses deduction – Form 2555
Foreign Tax Credit (FTC) and Deduction for Foreign Taxes Paid
Determination of U.S. residency Issues and ‘Closer Connection’ filings
Often individuals are required to fill out certain forms by their banking institutions or their Canadian tax prepares alert them to the fact that they have acquired certain presence in the U.S. that requires the application of a tax treaty. Our tax professionals can walk you through the U.S. residency tests and elections that are possible with regards to the substantial presence test and greed card test. The ability to make elections under U.S. tax treaties is essential to staying onside with U.S. tax compliance and we are help to help guide you and help understand the forms required.
Do You Own a Bank Account Outside of the US? Shareholder of a non-U.S. Company?
Streamlined Filing Compliance Procedures and Offshore Voluntary Disclosure Program
- Making a determination of procedural alternatives available to U.S. taxpayers:
- Whether the reason for misfiling was willful;
- Developing a reasonable cause defence;
- Using the various amnesty programs to bring you into compliance;
- Developing a strategy outside of the framework of the amnesty programs to become compliant with the relevant tax authorities;
- Once your tax compliance strategy is determined we will prepare and file the necessary returns and reporting requirements to become compliant;
- We will engage the IRS to ensure that your file is properly reviewed, including contacting the IRS Criminal Investigations unit if necessary;
Gambling US Taxes Refund for Canadians
Immigration and Family Matters
U.S. Green Card Holder and a Citizen and Tax Resident of Another Country
U.S. Green Card holders and permanent residents offer the unique situation where you are either taxed as U.S. permanent resident or you have the ability to file non-resident U.S. tax returns. This is a complex determination that must be made with appropriate support and guidance. If you had a Green Card and are not sure if you have effectively ‘abandoned’ it, you are a current Green Card holder or you are unsure of your status, our tax professionals can assist in understanding your status and filing the appropriate forms to reduce your tax burden and give you piece of mind that you have properly complied with U.S. tax laws.
IRS Audit Defense, Appeals Representation, and Penalty Abatement Requests
- Produce settlements of back taxes providing an outcome with less tax owed than what you owe based on an offer in compromise;
- We can negotiate and set up a payment plan that is not burdensome of your lifestyle, within framework established by the applicable tax authorities (such as negotiating installment agreements with the IRS);
- We will attempt to reduce or eliminate penalties utilizing penalty abatement and waiver requests;
- We will strive to remove wage garnishments, bank levies and/or tax liens;
- Request innocent spouse relief;
- Prepare delinquent (unfiled) tax returns, getting you compliant with foreign bank account reporting (FBAR) and international information reporting requirements;
- All aspects of IRS audit defense, support in an ongoing examination, and representation in Appeals;
- Managing transfer pricing audit;
- Requesting competent authority assistance to eliminate or reduce double taxation;
- Resolving state and local tax issues.
IRS Liens and IRS Levies
When the IRS begins sending communications to individuals or businesses and those notices are being ignored, the IRS has the ability to issue Liens and Levies against individuals and their properties. This is an unfortunate situation that occurs when individuals or businesses do not properly engage the IRS. Our team of tax professionals will help explain the implications of these IRS notices and will explain the options available to you. If your case requires engaging the IRS to abate penalties and/or remove liens, or tax professionals are equipped with the knowledge and “knowhow” to best represent you in front of the IRS and help achieve favorable results.
IRS Wage Garnishment and IRS Seizures
The IRS as a service, does not let much passed them. If you have been unintentionally avoiding paying taxes or your tax preparing technique has led to an underreporting of income, the IRS may garnish your wages or seize property to recover any underpaid amounts. This is a serious situation that requires a delicate a thorough understanding of all of the options available to you. Our team of professionals can help assess your situation and explain to you the various options you may have. We will also represent you in front of the IRS if required. Wage garnishment and seizures require certain knowledge and understanding of the processes involved. Our experience in this area can assist you in mitigating any future penalties and becoming U.S. tax compliant.