Short answers to the questions we hear most. Each answer links to the guide that explains the topic in full.
About working with us
What does a U.S. CPA firm do for a cross-border client?
We prepare your U.S. returns and foreign account reports, plan the U.S. tax treatment of income and assets in Canada and India, register and support your U.S. business and represent you before the IRS and Illinois. We coordinate with your Canadian accountant and your Indian Chartered Accountant so the three filings agree. See cross-border tax for India, Canada and the USA.
Do you file Canadian or Indian returns?
No. We are a U.S. CPA firm. Canadian returns are filed with a Canadian accountant, and Indian returns with an Indian Chartered Accountant. We work with them and, if you do not have one, we can discuss what to look for.
How do fees work?
Fees depend on the scope of work, the number of countries and accounts, and the complexity of your situation. They are stated in a written engagement agreement before work begins.
Where do you work?
Our firm serves Aurora, the Fox Valley and the Chicago suburbs, and clients in the rest of the United States, Canada and India through secure online meetings. See Aurora and our local guides.
Foreign accounts and assets
Do I have to report my Indian or Canadian bank account to the U.S.?
If you are a U.S. citizen, green card holder or resident for tax purposes and the combined foreign balances exceeded $10,000 at any time in the year, you file an FBAR. You may also file Form 8938 with your return. See FBAR step by step and Form 8938, and the comparison with T1135 and Schedule FA.
Are Indian mutual funds a problem for U.S. taxpayers?
Often yes. Most are treated as passive foreign investment companies, which have their own form and unusual tax rules. See Form 8621 and PFIC.
What about RRSPs, TFSAs and RESPs?
They are Canadian tax-favored accounts that the U.S. treats differently from Canada. See RRSP, RRIF, TFSA and RESP under U.S. tax.
I missed foreign reports in earlier years. What now?
Do not file anything hastily, and do not ignore it. The right correction path depends on whether the omission was non-willful and on other facts. See IRS foreign reporting penalties and the penalty abatement playbook, then talk to a CPA.
Moving and residency
How do I know which country I am tax resident in?
Each country has its own test, and treaties settle conflicts. See residency tests compared and the three-country tie-breaker guide.
What should I do when I move from India or Canada to the U.S.?
Start with the India to U.S. checklist or read about Canadians living in the U.S..
What about moving back to India or Canada?
See the U.S. to India checklist and the Canada to India checklist.
Business
How do I start a business in Illinois?
Follow the step-by-step guide, then the guides on LLC vs corporation, licenses and permits and employer registrations.
I own a company in India or Canada. What do I owe in the U.S.?
It depends on the structure and the ownership. See foreign business reporting forms and foreign-owned LLCs.
IRS and other notices
I received a notice. What do I do first?
Read it, note the response date and look at our first steps and the response checklist. If it came from the CRA or an Indian authority, see the CRA and India guides, and check the scam alerts.