Revenue Canada VS the IRS

[alfredmay]

From time to time Canadians have discussed the possibility of the IRS making a money grab for their income if they overstay their allotted time in the USA without filing the required tax form to prevent this. Has anyone on this Forum actually had this happen to them?

I would like to report a Revenue Canada money grab that happened to me. I own some shares of stock in an American energy company. It was purchased by a Canadian company. The Canadian company set up an American subsidiary. I had to surrender my old stock in order to receive stock in the new company. Before receiving my new stock I had to fill out some simple Revenue Canada forms. Revenue Canada then collected tax on the dividends I received from the American subsidiary company.

[alfredmay]

To continue with the dialog:

I am not asking for tax advice. I am just reporting a tax event that happened to me. I am not trying to equate stock dividend taxes directly with visitation time limits and tax consequences related to those limits. What I am trying to do is look at the broader picture of The IRS and Revenue Canada taxing citizens of other countries.

What I am asking for is what I stated in the first paragraph of my original post which is...... "From time to time Canadians have discussed the possibility of the IRS making a money grab for their income if they overstay their allotted time in the USA without filing the required tax form to prevent this. Has anyone on this Forum actually had this happen to them?"

[JaxDad]

Fizz wrote:
To quote another member here.

"You will get better financial advice in the John Deer Tractor Forum"

No, the Kubota people are far more astute on sophisticated matters like taxes.

[Fizz]

To quote another member here.

"You will get better financial advice in the John Deer Tractor Forum"

[toedtoes]

Again, you need to talk to a tax attorney not an RV forum. This is NOT the same thing as a Canadian being required to pay US taxes for being in the country too long.

[alfredmay]

Thanks for the comments. To elaborate a bit:

I own stock in an American subsidiary of a Canadian company. It is incorporated in the USA. I do not own stock in a Canadian company.

I know that I can deduct this on my US taxes, but that is not the point. The point is tax is paid to Canada on dividends from a US incorporated company.

The same thing happened to me a number of years back when a British company bought out an American company I had stock in. I pay no tax to the UK.

[fchammer1]

alfredmay wrote:
Revenue Canada then collected tax on the dividends

Hmm. So it wasn't the IRS that took your money, it was your own Revenue Canada. Yep, you said that, but for a time, the finger seemed to be pointing south.

[dons2346]

The tax you paid to a foreign country is tax deductible on your federal taxes

[accsys]

The USA and Canada have an Income Tax Treaty that covers monies earned in the opposite country. For USA citizens or residents the applicable publication is Pub 597. I am sure Canada has a similar publication for its citizens.

Also the USA income tax has provisions for income taxes paid to other countries and you will normally reduce the US income tax by the amount paid to the other country IF the USA and that country have a tax treaty. Publication 514, along with Form 1116 and its associated instructions cover that credit.

[toedtoes]

What were the "simple forms" you filled out? I would suggest talking to a tax attorney.

The IRS going for income tax on Canadians who stay in the US too long is far different than an American holding stock in a Canadian company...