Repercussions from not filing the 8840 form

Summer 2014 CSANews Issue 91  |   Posted date : Aug 06, 2014.Back to list

Bird talk - Le Jaseur
Dear Bird Talk,

I recently found out about the 180-day time permitted in the U.S. We are Canadian citizens who own property in the U.S. and we spend an average of about six months per year (three winter, three summer). However, we were unaware of this Form 8840 Closer Connection to Canada until two weeks ago, so we filled it out and mailed it to the IRS. My concern is, because we only found out about this form recently, will there be any repercussions from the previous years when we did not fill out this form?

Sarah
Ontario

Response:
Ed.: You have now made the IRS aware that you are a Canadian and that is a very good thing from a tax perspective. The CSA has encouraged tens of thousands of Canadians to file the Form 8840, for the first time, and we have never heard of a complaint about their subsequent treatment by the IRS. There is no tax upside to chasing Canadians, but U.S. capital gains and estate taxes can be issues.

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