Form 5471: Ownership in a Canadian Corporation (Foreign Corporation)

U.S. citizens who reside in Canada owning at least 10% in a Canadian Corporation or are officers, directors may be required to file Form 5471 annually. The ownership percentage determines how much corporate information is required to be reported on Form 5471. Form 5471 is due on June 15th and is filed with the 1040 and failure to file the form is a $10,000 penalty.

Form 8938: Statement of Specified Foreign Financial Assets

U.S. citizens filing married filing separately who have Canadian accounts/assets with a total value exceeding U.S. $200,000 at the end of the year or U.S. 300,000 at any time during the year are required to disclose on Form 8938. The disclosure requirement is in addition to the FBAR filings and is filed with the 1040.  

Form 3520/3520-A: Annual Return To Report Transactions With Foreign Trusts

If you contribute to RESPs and/or RDSPs, the income from your contributions are taxable on your U.S. return. There is also potential foreign trust reporting on Form 3520/3520-A when U.S. citizens have ownership in RESPs and or RDSPs as well.

Form 114: Report of Foreign Bank and Financial Accounts (FBAR)

U.S. citizens who have a financial interest in or signature authority over any “financial accounts” in Canada are required to make a separate filing if the aggregate value of these accounts exceeded $10,000 at any time during a taxation year. All accounts must be reported if the aggregate value of your accounts in Canada exceeded $10,000.  For example, if you have an RRSP that has $15,000 you must report your RRSP and all checking savings and investment accounts on your FBAR.

Foreign “financial accounts” includes Canadian bank accounts, investment accounts, RRSPs, TFSAs, and corporate accounts (if you have signing authority). These filings must be made by June 15. There are severe civil and criminal penalties for non-compliance of these filing requirements. This form is filed separately from your tax return and it is mandatory that this form be filed electronically.