Form 8840

Summer 2016 CSANews Issue 99  |   Posted date : Jul 20, 2016.Back to list

Bird talk - Le Jaseur
Would it be possible to file Form 8840 only after the IRS has noticed that you have gone above the 183-day threshold? How are they able to keep track of this? Would it be brought to your attention when you try to cross the border?

Drew B.
Vancouver, B.C.

Response:
Ed.: That’s a scary question. First, if you stay for longer than 183 days in the United States in any calendar year, you are considered a U.S. resident and, therefore, are subject to tax on your worldwide income! Period! If you stay for longer than three months per year on a regular basis, they can also deem you to be a U.S. resident for tax purposes. The way to avoid very unpleasant results is to file the Closer Connection Form 8840 by June 15 every year. There have been several cases involving B.C. residents in which hundreds of thousands of dollars became payable in U.S. taxes. Believe me, you do not want anything to be drawn to your attention at the border, and they do know much more than you expect. There is also a new reciprocal arrangement between Canada and the U.S. to share border-crossing data. Big Brother really is watching.

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