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Tag Archive for US Expat tax filers

I Hit The Jackpot! Now How Do I Get My Withholding Back?

For Canadians gambling in United States casinos, “What happens in Vegas, doesn’t have to stay in Vegas”.

Unlike Canada, the United States considers winnings from gambling and lotteries to be taxable. Under the Tax Law jackpots of $600 or more will incur a non-resident withholding tax of 30%. So if you win $10,000 you only go back to Canada with $7000.

But as a Canadian, can you get that money back? The short answer is maybe. The US-Canada Tax Treaty allows Canadians to deduct their U.S. gambling losses (with a few exceptions) in a given year from winnings.

How do you substantiate the losses? You don’t have to submit your receipts to the IRS. Read more

At Last – Great News From The IRS For US Expat Tax Filers Who Are Late Or Non-Compliant

IRS Building in WashingtonThe IRS has declared filing three years back taxes is adequate for most US expat tax filers who are delinquent and there shall be no penalties for late FBARs (Foreign Bank Account Reports) from those who were unaware of the requirement to file.

This brings a clarity and welcome relief to many American expats who in the past may have been reluctant to file US income taxes because there was no assurance that they would not be further harassed (or assessed exorbitant penalties and fees) because they simply didn’t know – or they didn’t trust the potential outcome if they did attempt to come forward and become compliant with US tax laws…

As an online tax accounting firm which exclusively serves Americans living abroad, we had originally interpreted the three year rule as the best option for its clients and that opinion is now fully endorsed by the IRS itself. The IRS has clarified that, for Americans living overseas who are delinquent in filing their US income taxes, filing three years back taxes will bring the vast majority (those who owed less than $1500 per year) into full compliance with new IRS rules.  This is confirmed on the IRS website itself.Additionally, the IRS goes on to state that for those who need to file FBARs (Foreign Bank Account Reports), filing 6 years is sufficient and that that late filers who were not aware of the requirement will not be penalized for making quiet disclosures in this manner. Read more