Key Areas of U.S. Tax Compliance
1. U.S. Personal Tax Returns (1040 and 1040-NR)
Individuals may need to file:
- Form 1040 — for U.S. citizens, green card holders, and residents
- Form 1040-NR — for non-residents earning U.S.-source income
Common income types requiring U.S. filing include:
- Employment income
- Rental income from U.S. property
- Business income
- Capital gains from U.S. real estate • Investment income
- U.S. pension or retirement income
We ensure your U.S. return aligns with your Canadian return to avoid double taxation.
2. U.S. Corporate Tax Returns (1120, 1120-F)
Canadian corporations may need to file U.S. returns if they:
- Have U.S. clients
- Have employees or contractors in the U.S.
- Own U.S. real estate
- Have a U.S. permanent establishment
- Sell goods or services into the U.S.
We help determine whether a corporation has a U.S. filing obligation and how to apply treaty protections.
3. Foreign Reporting: FBAR and FATCA
U.S. persons must report foreign financial accounts if the total value exceeds certain thresholds.
- FBAR (FinCEN Form 114) — reports foreign bank accounts
- FATCA (Form 8938) — reports foreign assets
Penalties for non-compliance can be severe, even when no tax is owed. We ensure all foreign reporting is completed accurately and on time.
4. U.S. Real Estate Investment Taxation
Canadians investing in U.S. real estate face unique rules:
- Rental income reporting
- FIRPTA withholding on sale
- Capital gains tax
- State-level tax filings
- Depreciation rules
- Treaty-based elections
We help investors structure their holdings, file correctly, and minimize tax exposure.
5. Treaty-Based Tax Positions
The Canada–U.S. Tax Treaty provides relief from double taxation, but only if applied correctly. Common treaty applications include:
- Residency tie-breaker rules
- Permanent establishment exemptions
- Reduced withholding tax rates
- Foreign tax credits
- Treaty elections for real estate investors
We ensure treaty positions are properly documented and defensible.
WIS Accounting Helps You Stay Compliant
Our U.S. tax services are built on three pillars:
1. Compliance
We ensure all required U.S. filings are completed accurately and on time, including:
- 1040 / 1040-NR
- 1120 / 1120-F
- FBAR
- FATCA
- State tax returns
- FIRPTA filings
2. Coordination with Canadian Tax
We ensure your Canadian and U.S. filings work together to:
- Avoid double taxation
- Maximize foreign tax credits
- Apply treaty benefits
- Align residency status
3. Strategy
We help you plan ahead by:
- Structuring cross-border business operations
- Optimizing real estate investments
- Managing residency transitions
- Planning for retirement income
- Reducing long-term tax exposure
Why Clients Choose WIS Accounting
WIS Accounting, Tax & Advisory Inc. stands out because of our:
- Cross-border specialization
- Professional credentials (ACCA, CFE)
- Deep understanding of CRA and IRS rules
- Experience with complex tax situations
- Commitment to accuracy and transparency
We help clients stay compliant, avoid penalties, and make informed decisions across both tax systems.
Final Thoughts
Cross-border tax compliance is not something you should navigate alone. With the right guidance, you can avoid costly mistakes, reduce your tax burden, and stay compliant with both the CRA and IRS.
WIS Accounting, Tax & Advisory Inc. provides the expertise you need to manage your U.S. tax obligations with confidence.
