How we help
- Annual Form 1040 preparation for US persons in Canada (with treaty positions)
- FBAR (FinCEN Form 114) filings for foreign financial accounts over US$10,000
- Form 8938 (FATCA) statement of specified foreign financial assets
- PFIC analysis for Canadian mutual funds and ETFs (Form 8621)
- Form 3520 / 3520-A for foreign trust connections (TFSA, RESP)
- Streamlined Foreign Offshore Procedures for past non-filers
Citizenship-based taxation
The US is one of the few countries that taxes based on citizenship rather than residence. A US citizen who has never set foot in the United States since infancy and a green-card holder who has not been to the US in years are both, by default, US tax filers. The foreign-earned-income exclusion (IRC section 911) and foreign tax credits usually eliminate the cash US tax for residents of high-tax countries like Canada — but the filing obligation continues regardless.
The four filings most US persons in Canada need
- Form 1040 — the US individual income tax return. Filed annually by April 15 (or June 15 if living abroad), reporting worldwide income with foreign tax credits.
- FBAR (FinCEN Form 114) — required if the aggregate maximum value of all foreign financial accounts exceeded US$10,000 at any point in the calendar year. Civil penalty for non-willful non-filing is up to US$10,000 per year; willful non-filing penalties can run to 50% of account value per year.
- Form 8938 — the FATCA statement, filed with Form 1040, required when the aggregate value of specified foreign financial assets exceeds a threshold (US$200,000+ for unmarried filers abroad).
- Form 8621 — required for each passive foreign investment company (PFIC) the US person owns. Most Canadian mutual funds and many ETFs are PFICs.
The Canadian-account traps
The accounts that catch US persons in Canada most often are:
- TFSAs — the Canada Revenue Agency treats a TFSA as tax-sheltered, but the IRS does not recognize it. Income in the TFSA is fully US-taxable. Worse, some TFSAs administered through self-directed brokerages are characterized as foreign trusts triggering Forms 3520 and 3520-A.
- RESPs — similarly unsheltered from a US standpoint and frequently treated as foreign grantor trusts.
- Canadian mutual funds and ETFs — PFICs, requiring Form 8621 and frequently a Qualified Electing Fund or mark-to-market election to avoid punitive excess-distribution tax.
- RRSPs — treaty-elected deferral under Article XVIII is automatic since 2014, but distributions remain US-taxable in the year received.
Streamlined Foreign Offshore Procedures
For US persons in Canada who haven't been filing — by far the most common posture we see in new clients — the IRS's Streamlined Foreign Offshore Procedures provide a path to compliance: three years of amended income-tax returns, six years of FBARs, and a signed certification of non-willful conduct. The Streamlined Foreign Offshore is penalty-free if the certification is accepted, which is a dramatically better outcome than waiting for the IRS to find you. The Streamlined Filing Procedures page covers the mechanics.
How we work the file
Most engagements begin with a triage of the filings the client has missed, the values involved, and whether the non-filing was non-willful. We then prepare the package — typically the three Streamlined years of Form 1040, six FBARs, the certification, and any necessary PFIC mark-to-market or QEF elections — and submit it to the IRS. Future-year compliance is then maintained on an annual cycle.
What to expect when you call us
Your first call is a free, no-obligation consultation with a tax lawyer. We will review the details of your situation, explain your options under the Income Tax Act and CRA administrative practice, and give you a clear, fixed-fee quote if you choose to retain us. Your consultation is confidential, and once we are retained, communications are protected by solicitor–client privilege.
If you retain us, we begin work within 24 hours of being retained.
Frequently asked questions
Is the consultation really free?
Yes. Most cases qualify for a free, no-obligation consultation with one of our tax lawyers. During the call we'll review your situation, explain your options, and give you a clear quote if you decide to retain us.
What does a tax lawyer do that an accountant does not?
A tax lawyer focuses on the legal side of tax — disputes, litigation, and the structuring of transactions in light of the law and anti-avoidance rules. That includes representing taxpayers in CRA audits and objections, appearing at the Tax Court of Canada, defending penalties and director or derivative liability, and designing reorganizations such as section 85 rollovers and estate freezes.
The most practical distinction is privilege. Communications with a lawyer are generally protected by solicitor-client privilege, while communications with an accountant generally are not and can be demanded by the CRA. Where the facts are sensitive or the matter could become contentious, that protection matters.
Lawyers and accountants often work together — the accountant on the numbers and filings, the lawyer on strategy, privilege, and the legal record. Barrett Tax Law regularly coordinates with a client's existing accountant.
Do you serve all of Canada?
Yes. Barrett Tax Law represents clients across Canada. We have offices and local phone lines in Toronto, Calgary, Edmonton, Fort McMurray, Ottawa, Vancouver, and Winnipeg, plus a national toll-free line at 1-877-882-9829.
Who is Barrett Tax Law and what areas does the firm handle?
Barrett Tax Law is a Canadian boutique tax law firm that represents individuals and businesses in their dealings with the Canada Revenue Agency. The firm's work spans CRA audits and disputes, voluntary disclosures, Tax Court of Canada litigation, collections matters, and corporate and estate tax planning.
The firm was founded in 2009 and has represented many thousands of clients across Canada. Its head office is in Concord, Ontario (Vaughan), and it serves clients nationwide. You can reach the firm toll-free at 1-877-882-9829 (1-877-8-TAXTAX).
Most matters qualify for a free, no-obligation consultation, and most are quoted on a fixed-fee basis once scope is understood, so the cost is known before work begins.
What does a tax lawyer do that an accountant cannot?
Accountants prepare returns and financial statements. Tax lawyers represent you when those returns are challenged, audited, or prosecuted — and our communications are protected by solicitor–client privilege, which accountant communications generally are not.
What should I do if I receive a letter from the CRA?
First, identify what the letter is and what it requires. A CRA letter may open an audit, ask for documents, propose adjustments (a proposal letter), confirm a reassessment, or start collection action — and each carries its own deadline and its own implications. Note any date by which a response is required.
Do not ignore it, and be careful about responding off the cuff. What you say and produce can shape your later objection and appeal position, and casual admissions can be difficult to undo. If the letter proposes adjustments or penalties, or if significant amounts are involved, get advice before responding.
A free consultation can help you understand the letter, the deadline, and the right next step. Acting early — while options are still open — is usually far better than waiting until a deadline is near.
Will the CRA criminally prosecute me?
Most CRA disputes are civil. Criminal prosecution is reserved for serious tax evasion or fraud, usually involving deliberate misrepresentation. If you have unreported income, a voluntary disclosure is one of the standard ways to reduce criminal-prosecution risk.
Is the first consultation really free?
Yes. Most matters qualify for a free, no-obligation consultation with an experienced tax lawyer. The consultation is a chance to describe your situation, get a clear sense of the options and likely path, and receive a fee structure in writing before you commit to anything.
You can reach the firm toll-free at 1-877-882-9829 (1-877-8-TAXTAX) to arrange a confidential consultation. The head office is in Concord, Ontario (Vaughan), and the firm serves clients across Canada.
Are my communications with a tax lawyer confidential?
Yes. Communications between you and your lawyer for the purpose of obtaining legal advice are generally protected by solicitor-client privilege, one of the most strongly protected confidences in Canadian law. In practical terms, the CRA generally cannot compel disclosure of privileged communications.
This is an important difference from working with an accountant or other non-lawyer representative, whose communications and working papers can generally be demanded by the CRA. Where the facts are sensitive — unreported income, offshore assets, or potential penalties — that protection can be significant.
Privilege has limits and can be waived inadvertently, so it should be handled with care. A consultation can explain how privilege applies to your particular situation.
How fast can you start on my case?
We typically begin work within 24 hours of being retained. For audit deadlines, Notices of Objection, and other time-sensitive matters, we move immediately.
What if I have unfiled tax returns from many years ago?
We routinely handle 5+ years of unfiled returns. Through the Voluntary Disclosures Program — applied for before the CRA contacts you — we can usually eliminate gross-negligence penalties and limit interest exposure.