IRS says it now plans to invest time and resources catching non-compliant Canadians and taxpayers abroad elsewhere with regards to forms commonly applicable to that specific group of taxpayers – ones unfortunately also commonly missed. It will focus on:
- Form 3520/3520-A annual return to report transactions with foreign trusts and receipt of certain foreign gifts (a gift of more than $100,000 from a non-resident alien individual)
- Forms 1042/1042-S Withholding – such as on payment from renters of USA property
- Nonresident Alien Tax Treaty Exemptions – Improperly claim treaty benefits and exempt U.S. source income from taxation
- Nonresident Alien – Proper deduction of eligible expenses including Sch A itemized
- NRA Tax Credits – Erroneous claims of dependent (e.g., kids, spouse) tax credits or education credits only available to U.S. persons
Have questions? Contact Daniel Gray.