unfiled income tax years = stop at border?

[DaniB]

A friend expressed surprise that our family was able to get passports last year and go across the border (to Disney). She said she heard that people were being denied crossing if there were any income tax years unfiled.

I have the past 2 years completed and being mailed. And that leaves this current year for me to complete.

Does anyone know anything about this??

 

[Gigi22]

Haven't heard anything about this. Since unfiled income taxes could easily be for refunds to the taxpayer, I question whether this could be in force.

 

[3pletprincesses]

Never heard of that. My bro had no problems so far and hasn't filled in 3 years.

 

[dsneygirl]

Perhaps if there were criminal charges were involved (which can happen with unfiled income tax) but other than that I doubt it. If you are in a refund position the government won't be chasing you down.

 

[OntFamily]

There may be more to the story (and regardless, unless a judge has ordered no passport be issued, a passport can't be withheld).

No one has to file an income tax return in Canada unless:
1) they have taxes payable (eg your employer isn't withholding enough taxes)
2) Canada Revenue Agency has sent you a notice specifically notifying you, that you must file a return
3) a few other minor issues that most people don't need to be concerned with (eg you need to repay old age pension, etc)


Otherwise, there's no legal requirement to file a return ! (though, if you are owed money via a refund, you won't get the refund unless you file !)

 

[dennise]

My husband is always 2 years behind, but he always has a refund and we have driven across the border numerous times as well as flown. He just net filed this years income tax, so he is now officially cought up. This is the first time he has been caught up since he stopped using an accountant. Mine is always done early.

 

[Northstar]

I'm wondering if your friend got confused about people being stopped because of not filing U.S. taxes.

There's a huge problem looming for Canadians who just happen to be dual citizens, US and Canada, because they were born in the US. US citizens have to file US tax returns no matter where they live. This is not new, but in the old days before required passports and careful scrutiny at the border, nobody inquired too closely. But now, they're checking place of birth in your passport. If you have a Canadian passport with a US place of birth, the border guards on the US side may give you a hard time... because you're supposed to be entering the US on a US passport. And you are also supposed to file a US tax return every single year.

So I have actually heard of people having trouble at the border because of unfiled tax returns, but it was US tax returns.

 

[Sue M]

Oh, now I'm scared Last time we crossed the boarder into the U.S. driving down to Seattle, the agent gave me a hard time using a Canadian PASSPORT, but said nothing about filing US taxes. I've never filed US tax.
Now I'm worried. Is it a possibility they will not let me in?

 

[ado121]

i work for canada customs and i have never heard of that.

 

[minnie56]

Never heard of this...I cross all the time with a U.S born friend who I can tell you never files a tax return stateside and there's not ever even been a second look??

I'm wondering if your friend got confused about people being stopped because of not filing U.S. taxes.

There's a huge problem looming for Canadians who just happen to be dual citizens, US and Canada, because they were born in the US. US citizens have to file US tax returns no matter where they live. This is not new, but in the old days before required passports and careful scrutiny at the border, nobody inquired too closely. But now, they're checking place of birth in your passport. If you have a Canadian passport with a US place of birth, the border guards on the US side may give you a hard time... because you're supposed to be entering the US on a US passport. And you are also supposed to file a US tax return every single year.

So I have actually heard of people having trouble at the border because of unfiled tax returns, but it was US tax returns.

 

[Sue M]

O.K. thanks, I feel a bit better now. I've been having nightmares, going to NY in May for Nephews wedding, and having dreams I was turned away, and missed the wedding

 

[dntd]

When I go to the states for shopping I find the US side always gives a harder time, the check out everything including my stow and go seating. On the way home all they are worried about is what I'm bringing back, I give them my reciepts and off I go.

 

[crashbb]

i work for canada customs and i have never heard of that.

It would be an issue with US immigration, not Canada customs.

 

[ferris198]

There may be more to the story (and regardless, unless a judge has ordered no passport be issued, a passport can't be withheld).

No one has to file an income tax return in Canada unless:
1) they have taxes payable (eg your employer isn't withholding enough taxes)
2) Canada Revenue Agency has sent you a notice specifically notifying you, that you must file a return
3) a few other minor issues that most people don't need to be concerned with (eg you need to repay old age pension, etc)


Otherwise, there's no legal requirement to file a return ! (though, if you are owed money via a refund, you won't get the refund unless you file !)

I believe if you get a T4 you need to file a return, if you don't CRA will eventually send you something. If you have filed for bankrupcy you must file.

 

[OntFamily]

I believe if you get a T4 you need to file a return, if you don't CRA will eventually send you something. If you have filed for bankrupcy you must file.

No, CRA's own website says you are not obligated to file a return, unless the conditions I mentioned above hold true (one of them being if CRA notifies you that you must file a return). Otherwise, there is no obligation.

I expect if you don't file for several years, they'll eventually send you a request to file.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.html

 

[ferris198]

No, CRA's own website says you are not obligated to file a return, unless the conditions I mentioned above hold true (one of them being if CRA notifies you that you must file a return). Otherwise, there is no obligation.

I expect if you don't file for several years, they'll eventually send you a request to file.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.html

You are somewhat misguided in your information. If you have filed for bankrutcy you must file and it is up to the Trustee that you filed with to ensure that it is done. I know because my brother filed for bankrutcy. It is the only way that the government will get what is owed to them in taxes.

 

[OntFamily]

You are somewhat misguided in your information. If you have filed for bankrutcy you must file and it is up to the Trustee that you filed with to ensure that it is done. I know because my brother filed for bankrutcy. It is the only way that the government will get what is owed to them in taxes.

No, not misguided. If you re-read my original post (and the link I provided) I mentioned there are some other reasons but they don't apply to most people.

If you are bankrupt (again, luckily, this applies to very few people) your trustee files your return on your behalf. This is to wind up your assets. However, from CRA's point of view, in an of itself, bankruptcy is not a reason to file.

Also, the original post was with respect to if you did not file a return, you would get stopped at the border. There's lots of intricacies in tax law, and we could debate many financial points for hours.

 

[Sue M]

I'm wondering if your friend got confused about people being stopped because of not filing U.S. taxes.

There's a huge problem looming for Canadians who just happen to be dual citizens, US and Canada, because they were born in the US. US citizens have to file US tax returns no matter where they live. This is not new, but in the old days before required passports and careful scrutiny at the border, nobody inquired too closely. But now, they're checking place of birth in your passport. If you have a Canadian passport with a US place of birth, the border guards on the US side may give you a hard time... because you're supposed to be entering the US on a US passport. And you are also supposed to file a US tax return every single year.

So I have actually heard of people having trouble at the border because of unfiled tax returns, but it was US tax returns.

What have you heard? About dual citizens crossing the border? I've lived here 30 years, and never filed US tax. Only Canadian tax. I've never been asked crossing the border into the US if I've filed US tax.
It would be an impossibe job to look back 30 yrs for US tax. And it's enough I have to pay Canadian tax, but to have to pay US tax too?

 

[glendalais]

What have you heard? About dual citizens crossing the border? I've lived here 30 years, and never filed US tax. Only Canadian tax. I've never been asked crossing the border into the US if I've filed US tax.
It would be an impossibe job to look back 30 yrs for US tax. And it's enough I have to pay Canadian tax, but to have to pay US tax too?

Legally, all U.S. Citizens and Legal Permanent Residents must file a Income Tax Return with the Internal Revenue Service if so required to by virtue of their annual income, regardless of where they reside in the world. Failing to file a tax return is a serious matter.

That doesn't necessarily mean that you have to pay U.S. taxes, however. Under the Income Tax Convention between the United States and Canada, Americans residing in Canada who pay taxes to the Canada Revenue Agency can claim a credit for such taxes on their U.S. tax return. Given that Canada's taxes are generally higher than the United States, this generally eliminates any U.S. income tax that might be owed. However, you are still required by law to file a return.

The Statue of Limitations on Tax Returns is three years. After this point, the Internal Revenue Service cannot pursue actions against you on taxes filed or not filed prior to three years ago. In addition, the IRS as a matter of policy does not pursue criminal charges against persons who file voluntarily, even if it's late.

For more information, visit their website for persons who have failed to file a Tax Return.

It should be noted that the only official way to avoid the filing requirement is to renounce one's United States Citizenship or Legal Permanent Resident status. If you are interested in doing this, contact the nearest United States Diplomatic Mission, located in Canada at:

• Ottawa, Ont.
• Toronto, Ont.
• Montréal, Que.
• Québec, Que.
• Calgary, Alta.
• Vancouver, B.C.
• Winnipeg, Man.
• Halifax, N.S.

 

[Sue M]

Legally, all U.S. Citizens and Legal Permanent Residents must file a Income Tax Return with the Internal Revenue Service if so required to by virtue of their annual income, regardless of where they reside in the world. Failing to file a tax return is a serious matter.

That doesn't necessarily mean that you have to pay U.S. taxes, however. Under the Income Tax Convention between the United States and Canada, Americans residing in Canada who pay taxes to the Canada Revenue Agency can claim a credit for such taxes on their U.S. tax return. Given that Canada's taxes are generally higher than the United States, this generally eliminates any U.S. income tax that might be owed. However, you are still required by law to file a return.

The Statue of Limitations on Tax Returns is three years. After this point, the Internal Revenue Service cannot pursue actions against you on taxes filed or not filed prior to three years ago. In addition, the IRS as a matter of policy does not pursue criminal charges against persons who file voluntarily, even if it's late.

For more information, visit their website for persons who have failed to file a Tax Return.

It should be noted that the only official way to avoid the filing requirement is to renounce one's United States Citizenship or Legal Permanent Resident status. If you are interested in doing this, contact the nearest United States Diplomatic Mission, located in Canada at:

• Ottawa, Ont.
• Toronto, Ont.
• Montréal, Que.
• Québec, Que.
• Calgary, Alta.
• Vancouver, B.C.
• Winnipeg, Man.
• Halifax, N.S.

Thanks for the info. Not interested in renouncing my US citizenship. I do have Canadian Citizenship too.
Don't know what I'll do about my U.S> tax situation. Ugh. What a pain.