Forgot to File US Tax Return as Canadian Resident

[santoki]

Last year I had my US return completed by H & R Block. Through some miscommunication, I had assumed that they had sent the file on my behalf. Now, going through the process again for 2014, it seems as though I was mistaken. I very well may have intended to file my taxes, but never actually sent the file in.

What in the world would I do in this case? Simply file for 2014? Contact the IRS? Any idea what or any kind of penalties I could face for this? Any help would be appreciated...thanks.

 

[GPSiConsultant]

Do you actually have a copy of the US tax return? Also, which state in the US are you from? Have you also stayed out of the US for the full year?

 

[santoki]

Yes, I still have a copy of the 2013 return. I am from Illinois and live permanently in Canada. I only travel to the US for maybe a week per year to visit family.

 

[GPSiConsultant]

What was your income in the US? Did you sever your residential ties in Illinois?

 

[santoki]

I have no property or assets in the US at all. I've lived in Canada almost three years now. My income in the US in my last year was under $40K.

 

[GPSiConsultant]

I am just looking up state law in Illinois. Just to see if you are considered to have severed your residential ties. I will let you know what I find. You can always email me at pulse.financials @ live.com

 

[ellle]

Can't comment on Illinois State Tax, but for Federal Income Tax:

I would file for both years - 2013 and 2014.

From IRS Website:
"If you are a U.S. citizen or resident alien living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States. Your income, filing status, and age generally determine whether you must file a return."

Also, you might be required to file FBAR, and other forms like 8938.

 

[jes_ON]

santoki - just file the Federal for both years, attach an explanation of why the 2013 return is late.

http://www.irs.gov/Individuals/International-Taxpayers/Options-Available-to-Help-Taxpayers-With-Offshore-Interests

If you have a bank account in Canada or more financial accounts, make sure the return includes a Schedule B (Section III) - you will need to determine whether or not you need to file the FBAR before you do this -

http://www.irs.gov/uac/Schedule-B-%28Form-1040%29,-Interest-and-Ordinary-Dividends

As for Illinois - assuming you filed a part-year return for 2012, you probably don't need to file for 2013.
http://www.taxesforexpats.com/articles/expat-tax-rules/state-taxes-expat-tax-return.html


Generally useful info -
https://americansabroad.org/issues/taxation/us-taxes-while-living-abroad-faq/