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unclesams
Jul 7, 2007, 05:31 PM
Question:

I have been working in the US for a few years now - but this year 2006 was the first year I actually received a paycheck and W2. Since I did not make any money in Canada, and my only income is in the US.

1) Since I have an extension in what forms do I file in the US?

2) Do I also file Canadian Tax Return even though I made zero

3) What is the penalty for filing late, is it interest + set amount/% ?

Thanks so much.

Rich:)
AtlantaTaxExpert
Jul 9, 2007, 07:13 AM
1) You will probably file Form 1040 as a resident alien.

2) Do not know; no expertise in Canadian taxes.

3) If you have a refund due, there are NO penalties and interest. If you owe, the late penalty is 5% of the taxes due per month for the first 5 months, PLUS compounded interest at about 8% annually, PLUS potential negligence penalties.