Why did my U.S. bill change?
The company’s U.S. classification, its income and your compensation and distributions may all matter. The Canadian return alone does not settle the U.S. result.
U.S. TAX QUESTIONS · CANADIAN CORPORATIONS
Own a Canadian corporation and surprised by your U.S. tax bill?
Understand the U.S. reporting questions and what to review before your next return. Work directly with Chip to identify the facts, records and next steps your situation needs.
Tell Chip about your corporationFree initial inquiry · No payment until you agree to paid work
The questions
Start with what changed.
Whether this is your first year incorporated or you are planning ahead, these are useful issues to map before choosing a filing approach.
Does Form 5471 apply?
A Canadian company is not automatically a controlled foreign corporation, and ownership percentage alone does not settle the filing requirement. Ownership, roles, transactions and the tax year need review.
How do the two returns fit together?
Canadian tax records can be relevant to U.S. calculations and foreign tax credit questions. Any credit or other treatment depends on the facts and applicable rules.
What if earlier years are missing?
Prior U.S. returns, elections and information reporting should be reviewed before deciding how to correct a filing gap.
See the IRS overview of Form 5471 for the filing framework.
Records checklist
A little preparation goes a long way.
You don’t need everything to make an inquiry. These records can help identify what needs review later.
- Company formation documents, ownership percentages and dates of any changes
- Canadian corporate returns and financial statements for the relevant years
- Records of your salary, dividends, shareholder loans and other transactions
- Prior U.S. returns, international information forms and any IRS notices
- A short timeline of where you lived and worked and the questions you want answered
Working together
A U.S. filing perspective, with a clear boundary.
FileAbroad reviews U.S. federal tax and international reporting questions for accepted engagements. Foreign-entity work is assessed individually, and some matters require an international-corporate specialist.
Canadian tax and legal advice, local filings, and legal representation are outside FileAbroad’s scope. Coordinate those questions with your Canadian professional.
The public inquiry is for broad facts only. Please don’t include Social Security numbers, account numbers, tax returns or bank statements; secure document instructions follow when needed.
Tell me what you’re trying to solve.
Share the years, your broad ownership situation and the question on your mind. I’ll review your inquiry and explain the next step.
Tell Chip about your corporationFree inquiry · Optional assessment $100 · Preparation quoted separately