Help! I would like a second opinion on what this page on the HR Block Canada site is really saying. It appears to me that they are either directly saying (or at least implying) that U.S. citizens in Canada MUST enter the Voluntary Disclosure Initiative. To me this sounds as though they are saying that people must enter the OVDI program that was reactivated in January 2012. VDI is certainly different from a general requirement to file U.S. tax returns. The page URL is here (it states a 2012 publication date):
http://www.hrblock.ca/canada-irs.asp
What follows is an excerpt from the page. (You may want to read it all.) Am I misreading this? Am I misinterpreting this? How would a U.S. citizen in Canada interpret this? Help! At the very least I think this is highly misleading. I have highlighted certain parts. Your thoughts?
For US Citizens Living in Canada
Any US citizen who lives in Canada (regardless of when he or she moved here and regardless of how long he or she has stayed) needs to file a US tax return with the Internal Revenue Agency (IRS) under the Voluntary Disclosure Initiative (VDI).
Contact us today to find out how we can help.
Key Points Relating to the VDI for Canadian Residents
- The IRS program formerly known as the Offshore Voluntary Disclosure Initiative (OVDI) is now closed. The final application deadline was August 31, 2011. This was not an amnesty program and as such venalities and interest were still imposed by the Internal Revenue Service where applicable. Therefore, the sooner a taxpayer files, the easier it will be to mitigate any penalties and the smaller any interest assessment for balances owed will be.
- The need for US citizens living in Canada to file under the VDI does not negate their obligation to file Foreign Bank and Financial Accounts (FBAR) forms and tax returns with the IRS. See below for more information.
- While there is generally a three year time limit to receive funds in return, there is no time limit when you owe taxes to the Internal Revenue Service. Furthermore, the statute of limitation does not start running until the tax return has been filed. Filing an incorrect or incomplete tax return will also prevent the statute clock from beginning to run.
p.s. I did not talk to any professional for help with the forms. Just kept reading the forms over and over and redid them a few times. My income included phantom RESP gains, EI, RRSP withdrawals, self-employment and earned income.
From: Customer Support H&R BLOCK
Sent: Wednesday, March 21, 2012 1:46 PM
To: “calgary411”
Cc: Customer Support
Subject: RE: POSSIBLE SPAM: :General Support Request
Dear “calgary411”,
Thank you for contacting H&R Block Canada’s Customer Support Team.
We are sincerely sorry to read our advertising did not meet your expectations. Please trust we value your business and that your satisfaction in our products and services is important to us.
We appreciate the time you took in providing us with your comments and will forward your feedback to the appropriate department for their review.
Thank you for choosing H&R Block and have a nice day.
Customer Support Team
H&R Block Canada
Field Support Organization
Email: Customer.Support@hrblock.ca
Phone: 1-800-561-2154
Website: http://www.hrblock.ca
/gg
Please tell us your concern:
My concern was:
Your page warning US residents “Any US citizen who lives in Canada (regardless of when he or she moved here and regardless of how long he or she has stayed) needs to file a US tax return with the Internal Revenue Agency (IRS) under the Voluntary Disclosure Initiative (VDI)” is blatant misinformation, exploiting those who do not have the $$ to get their US tax advice from a competent professional. Please see http://isaacbrocksociety.com/2012/03/12/check-out-the-following-page-on-hr-block-site-suggests-u-s-citizens-must-under-voluntary-disclosure/#comment-9217 for a posting on what H&R Block’s practices and many comments entered. US residents in Canada need factual information, including what Canada will and will not do regarding collecting US taxes and FBAR penalties, not a sales pitch.
This is entitled a ‘press release’ (US) that came up in an internet search. It looks like an article, but reads like an ad; http://www.marketwatch.com/story/all-irs-tax-audits-not-created-equal-2012-03-26
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http://www.forbes.com/sites/steveforbes/2012/04/04/irs-illegality/ Steve Forbes, Forbes Staff
4/04/2012 @ 5:48PM
…………”This article originally appeared in the Apr. 23, 2012 issue of Forbes magazine.
“IRS Illegality”
“The EPA isn’t the only agency that egregiously exceeds its lawful authority. Another, of course, is the IRS. Last year—on no authority from Congress—the IRS decreed that all tax preparers must register with it. Unless you are a certified public accountant, lawyer or “enrolled agent” you are going to be required to take an exam and undergo a minimum of 15 hours of continuing education each year.
Our tax collectors say this is to protect consumers from shoddily prepared tax returns. That’s a bit of a hoot, given that the IRS itself routinely gives taxpayers incorrect or incomplete information when they call the service’s hotline.”…………….
Goes on to mention H & R Block.
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