Claim your penalties back this tax season! TFSA and RESP accounts may no longer require Form 3520/3520‑A reporting …

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Yes­ter­day, March 2, the IRS has pro­vid­ed a long-await­ed relief from report­ing on Form 3520‑A and 3520 and asso­ci­at­ed penal­ties to dual U.S./Canadian cit­i­zens and Green card hold­ers with cer­tain “tax-favored for­eign” arrange­ments. Rev. Proc. 2020–17 dis­cuss­es eli­gi­ble U.S. cit­i­zens and res­i­dents, eli­gi­ble “tax-favored for­eign retire­ment and non­re­tire­ment” arrange­ments (referred to in the rev­enue pro­ce­dure as “trusts”), pro­vides a pro­ce­dure for claim­ing a refund of assessed penal­ties, and requests fur­ther com­ments from the tax com­mu­ni­ty. The IRS guid­ance can be found here: https://​www​.irs​.gov/​p​u​b​/​i​r​s​-drop/rp-20–17.pdf

Stay tuned for addi­tion­al infor­ma­tion dur­ing our spe­cial edi­tion ad-hoc webi­nar next Tues­day.

U.S. Tax IQ’s advi­sors have over 40 years of expe­ri­ence in tax law and make the return fil­ing process pain­less. We advise on U.S. tax and cross-bor­der tax issues and pre­pare your tax returns so that you can avoid penal­ties, opti­mize your tax­es, and avoid dou­ble tax­a­tion.

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