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Taxact2010

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Taxact2010

Taxact2010 Part Five -   Deducción Estándar y Deducciones Detalladas Después de calcular su ingreso bruto ajustado, entonces puede restar las deducciones utilizadas para calcular los ingresos tributables. Taxact2010 Puede restar la deducción estándar o las deducciones detalladas. Taxact2010 Las deducciones detalladas son deducciones por determinados gastos enumerados en el Anexo A (Formulario 1040). Taxact2010 Los diez capítulos de esta sección tratan sobre la deducción estándar, cada deducción detallada y el límite sobre algunas de sus deducciones detalladas si su ingreso bruto ajustado es mayor que ciertas cantidades. Taxact2010 Vea el capítulo 20 para saber qué factores debe tener en cuenta al decidir si debe restar o no la deducción estándar o las deducciones detalladas. Taxact2010 Table of Contents 20. Taxact2010   Deducción EstándarQué Hay de Nuevo Introduction Cantidad de la Deducción Estándar Deducción Estándar para DependientesDefinición del ingreso del trabajo. Taxact2010 Quién Debe Detallar las DeduccionesCuándo detallar las deducciones. Taxact2010 Personas casadas que presentan la declaración por separado. Taxact2010 21. Taxact2010   Gastos Médicos y DentalesQué Hay de Nuevo Introduction Useful Items - You may want to see: ¿Qué Son Gastos Médicos? ¿Qué Gastos Puede Incluir Este Año?Estados donde rige la ley de los bienes gananciales. Taxact2010 ¿Qué Cantidad de los Gastos Puede Deducir? ¿De Qué Personas Puede Incluir Gastos Médicos?Usted Cónyuge Dependiente Difuntos ¿Qué Gastos Médicos se Pueden Incluir?Primas de Seguros Comidas y Alojamiento Transporte Gastos del Cuidado de un Dependiente Incapacitado ¿Cómo se Tratan los Reembolsos?Reembolso de Seguros Indemnizaciones por Lesiones Personales Cómo Calcular y Reclamar la Deducción en su Declaración de Impuestos¿Qué Formulario Debe Usar para la Declaración? Gastos de Trabajo Relacionados con un Impedimento Costos del Seguro Médico para Personas que Trabajan por Cuenta Propia 22. Taxact2010   ImpuestosIntroductionGobierno tribal de indios estadounidenses. Taxact2010 Useful Items - You may want to see: Requisitos para Deducir Todo Impuesto Impuestos sobre los IngresosImpuestos Estatales y Locales sobre los Ingresos Impuestos Extranjeros sobre los Ingresos Impuestos Generales sobre las VentasVehículos de motor. Taxact2010 Impuestos sobre Bienes RaícesImpuestos sobre bienes raíces de años anteriores. Taxact2010 Ejemplos. Taxact2010 Formulario 1099-S. Taxact2010 Cantidades Relacionadas con Bienes Raíces que no Puede Deducir Impuestos sobre Bienes Muebles Impuestos y Cargos que no Puede Deducir Dónde se Anotan las Deducciones 23. Taxact2010   Gastos de InteresesIntroduction Useful Items - You may want to see: Intereses Hipotecarios de ViviendaCantidad Deducible Puntos Primas de Seguro Hipotecario Formulario 1098, Estado de Cuenta de los Intereses Hipotecarios Intereses Procedentes de InversionesBienes de Inversión Asignación de Gastos de Intereses Límite sobre la Deducción Cantidades que No Puede DeducirIntereses Personales Asignación de Intereses Cómo Hacer la DeclaraciónMás de un prestatario. Taxact2010 Fondos procedentes de una hipoteca utilizados para negocios o inversiones. Taxact2010 24. Taxact2010   DonacionesIntroduction Useful Items - You may want to see: Organizaciones que Reúnen los Requisitos para Recibir Donaciones DeduciblesTipos de Organizaciones Calificadas Donaciones que Puede DeducirDonaciones de las Cuales Usted se Beneficia Gastos Pagados a Nombre de un Estudiante que Vive con Usted Gastos de Bolsillo al Prestar Servicios Donaciones que no Puede DeducirDonaciones Hechas a Personas Físicas Donaciones Hechas a Organizaciones no Calificadas Donaciones de las Cuales Usted se Beneficia Valor de Tiempo o Servicios Gastos Personales Cargos de Tasación Donaciones de BienesExcepción. Taxact2010 Artículos domésticos. Taxact2010 Deducción de más de $500. Taxact2010 Formulario 1098-C. Taxact2010 Se acerca el plazo para la presentación de la declaración y aún no tiene el Formulario 1098-C. Taxact2010 Excepción 1: vehículo usado o mejorado por la organización. Taxact2010 Excepción 2: vehículo donado o vendido a una persona necesitada. Taxact2010 Deducción de $500 o menos. Taxact2010 Derecho al uso de los bienes. Taxact2010 Bienes muebles tangibles. Taxact2010 Intereses futuros. Taxact2010 Determinación del Valor Justo de Mercado Donación de Bienes Cuyo Valor ha Disminuido Donación de Bienes Cuyo Valor ha Aumentado Cuándo Puede Deducir sus DonacionesCheques. Taxact2010 Mensaje de texto. Taxact2010 Tarjeta de crédito. Taxact2010 Pago telefónico. Taxact2010 Título de acciones. Taxact2010 Pagaré. Taxact2010 Opción. Taxact2010 Fondos de un préstamo. Taxact2010 Límites sobre DeduccionesCantidades Trasladadas al Año Siguiente Documentación que se Debe MantenerDonaciones en Efectivo Donaciones que no Sean en Efectivo Gastos de Bolsillo Cómo Declarar las Donaciones Caritativas 25. Taxact2010   Pérdidas por Hecho Fortuito y Robo no Relacionadas con los NegociosQué Hay de Nuevo Introduction Useful Items - You may want to see: Hecho FortuitoMascota de la familia. Taxact2010 Deterioro progresivo. Taxact2010 Daños ocasionados por paneles de yeso (drywall) corrosivos. Taxact2010 Robo Pérdidas de Depósitos Comprobación de las Pérdidas Cómo Calcular una PérdidaDisminución del Valor Justo de Mercado Base Ajustada Seguro y Otros Reembolsos Un Solo Hecho Fortuito en Bienes Múltiples Límites de la DeducciónRegla de los $100 Regla del 10% Cuándo Declarar Ganancias y PérdidasPérdidas en Zonas de Desastre Cómo Declarar Ganancias y Pérdidas 26. Taxact2010   Gastos de Automóvil y Otros Gastos de Negocio del EmpleadoQué Hay de Nuevo Introduction Useful Items - You may want to see: Gastos de ViajeViajes Lejos de Su Domicilio Domicilio Tributario Trabajo o Asignación Temporal ¿Qué Gastos de Viaje se Pueden Deducir? Viajes en los Estados Unidos Viajes Fuera de los Estados Unidos Convenciones Gastos de EntretenimientoLímite del 50% ¿Qué Gastos de Entretenimiento se Pueden Deducir? ¿Qué Gastos de Entretenimiento no se Pueden Deducir? Gastos por Regalos Gastos de TransportePersonal en Reserva de las Fuerzas Armadas. Taxact2010 Cargos de estacionamiento. Taxact2010 Publicidad en el automóvil. Taxact2010 Uso compartido de automóviles. Taxact2010 Transporte de herramientas o instrumentos. Taxact2010 Gastos de desplazamiento de sindicalistas desde el centro del sindicato. Taxact2010 Gastos de Automóvil Mantenimiento de DocumentaciónCómo Demostrar los Gastos Cuánto Tiempo Tiene que Guardar Documentación y Recibos Cómo Hacer la DeclaraciónRegalos. Taxact2010 Empleados estatutarios. Taxact2010 Reembolsos Cómo Llenar los Formularios 2106 y 2106-EZ Reglas Especiales 27. Taxact2010   Beneficios Tributarios para Estudios Relacionados con el TrabajoQué Hay de Nuevo Introduction Useful Items - You may want to see: Estudios Relacionados con el Trabajo que Reúnen los Requisitos de la DeducciónEstudios Requeridos por el Empleador o por Ley Estudios para Mantener o Mejorar Destrezas Estudios para Satisfacer los Requisitos Mínimos Estudios que lo Capacitan para un Nuevo Oficio o Negocio Qué Gastos se Pueden Deducir Reembolso no reclamado. Taxact2010 Gastos de Transporte Gastos de Viaje No se Permiten Beneficios Dobles Reembolsos Cómo Deducir Gastos de NegociosPersonas que Trabajan por Cuenta Propia Empleados Artistas del Espectáculo y Funcionarios a los que se les Pagan Honorarios Gastos de Trabajo Relacionados con un Impedimento Documentación 28. Taxact2010   Deducciones MisceláneasQué Hay de Nuevo Introduction Useful Items - You may want to see: Deducciones Sujetas al Límite del 2%Gastos del Empleado no Reembolsados (Línea 21) Costos de la Preparación de la Declaración de Impuestos (Línea 22) Otros Gastos (Línea 23) Deducciones no Sujetas al Límite del 2%Lista de Deducciones Gastos no DeduciblesLista de Gastos no Deducibles 29. Taxact2010   Límite sobre Deducciones DetalladasIntroduction Useful Items - You may want to see: ¿Está Usted Sujeto al Límite? ¿Qué Deducciones Detalladas Están Limitadas? ¿Qué Deducciones Detalladas no Están Limitadas? ¿Cómo se Calcula el Límite?Ejemplo Prev  Up  Next   Home   More Online Publications
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The Taxact2010

Taxact2010 Publication 597 - Main Content Table of Contents Application of Treaty Personal Services Pensions, Annuities, Social Security, and AlimonyRoth IRAs. Taxact2010 Tax-deferred plans. Taxact2010 Investment Income From Canadian Sources Other Income Charitable ContributionsQualified charities. Taxact2010 Income Tax Credits Competent Authority Assistance How To Get Tax HelpText of Treaty U. Taxact2010 S. Taxact2010 Taxation Canadian Taxation Application of Treaty The benefits of the income tax treaty are generally provided on the basis of residence for income tax purposes. Taxact2010 That is, a person who is recognized as a resident of the United States who has income from Canada, will often pay less income tax to Canada on that income than if no treaty was in effect. Taxact2010 Article IV provides definitions of residents of Canada and the United States, and provides specific criteria for applying the treaty in cases where a taxpayer is considered by both countries to be a resident. Taxact2010 Saving clause. Taxact2010   In most instances, a treaty does not affect the right of a country to tax its own residents (including those who are U. Taxact2010 S. Taxact2010 citizens) or of the United States to tax its residents or citizens (including U. Taxact2010 S. Taxact2010 citizens who are residents of the foreign country). Taxact2010 This provision is known as the “saving clause. Taxact2010 ”   For example, an individual who is a U. Taxact2010 S. Taxact2010 citizen and a resident of Canada may have dividend income from a U. Taxact2010 S. Taxact2010 corporation. Taxact2010 The treaty provides a maximum rate of 15% on dividends received by a resident of Canada from sources in the United States. Taxact2010 Even though a resident of Canada, the individual is a U. Taxact2010 S. Taxact2010 citizen and the saving clause overrides the treaty article that limits the U. Taxact2010 S. Taxact2010 tax to 15%. Taxact2010    Exceptions to the saving clause can be found in Article XXIX, paragraph 3. Taxact2010 Treaty-based position. Taxact2010   If you take the position that any U. Taxact2010 S. Taxact2010 tax is overruled or otherwise reduced by a U. Taxact2010 S. Taxact2010 treaty (a treaty-based position), you generally must disclose that position on Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), and attach it to your return. Taxact2010 Personal Services A U. Taxact2010 S. Taxact2010 citizen or resident who is temporarily present in Canada during the tax year is exempt from Canadian income taxes on pay for services performed, or remittances received from the United States, if the citizen or resident qualifies under one of the treaty exemption provisions set out below. Taxact2010 Income from employment (Article XV). Taxact2010   Income U. Taxact2010 S. Taxact2010 residents receive for the performance of dependent personal services in Canada (except as public entertainers) is exempt from Canadian tax if it is not more than $10,000 in Canadian currency for the year. Taxact2010 If it is more than $10,000 for the year, it is exempt only if: The residents are present in Canada for no more than 183 days in any 12-month period beginning or ending in the year concerned, and The income is not paid by, or on behalf of, a Canadian resident and is not borne by a permanent establishment in Canada. Taxact2010    Whether there is a permanent establishment in Canada is determined by the rules set forth in Article V. Taxact2010 Example. Taxact2010 You are a U. Taxact2010 S. Taxact2010 resident employed under an 8-month contract with a Canadian firm to install equipment in their Montreal plant. Taxact2010 During the calendar year you were physically present in Canada for 179 days and were paid $16,500 (Canadian) for your services. Taxact2010 Although you were in Canada for not more than 183 days during the year, your income is not exempt from Canadian income tax because it was paid by a Canadian resident and was more than $10,000 (Canadian) for the year. Taxact2010 Pay received by a U. Taxact2010 S. Taxact2010 resident for work regularly done in more than one country as an employee on a ship, aircraft, motor vehicle, or train operated by a U. Taxact2010 S. Taxact2010 resident is exempt from Canadian tax. Taxact2010 Income from self-employment (Article VII). Taxact2010   Income from services performed (other than those performed as an employee) are taxed in Canada if they are attributable to a permanent establishment in Canada. Taxact2010 This income is treated as business profits, and deductions similar to those allowed under U. Taxact2010 S. Taxact2010 law are allowable. Taxact2010   If you carry on (or have carried on) business in both Canada and the United States, the business profits are attributable to each country based on the profits that the permanent establishment might be expected to make if it were a distinct and separate person engaged in the same or similar activities. Taxact2010 The business profits attributable to the permanent establishment include only those profits derived from assets used, risks assumed, and activities performed by the permanent establishment. Taxact2010   You may be considered to have a permanent establishment if you meet certain conditions. Taxact2010 For more information, see Article V (Permanent Establishment) and Article VII (Business Profits). Taxact2010 Public entertainers (Article XVI). Taxact2010   The provisions under income from employment or income from self-employment do not apply to public entertainers (such as theater, motion picture, radio, or television artistes, musicians, or athletes) from the United States who receive more than $15,000 in gross receipts in Canadian currency, including reimbursed expenses, from their entertainment activities in Canada during the calendar year. Taxact2010 However, this provision for public entertainers does not apply (and the other provisions will apply) to athletes participating in team sports in leagues with regularly scheduled games in both the United States and Canada. Taxact2010 Compensation paid by the U. Taxact2010 S. Taxact2010 Government (Article XIX). Taxact2010   Wages, salaries, and similar income (other than pensions) paid to a U. Taxact2010 S. Taxact2010 citizen by the United States or any of its agencies, instrumentalities, or political subdivisions for discharging governmental functions are exempt from Canadian income tax. Taxact2010   The exemption does not apply to pay for services performed in connection with any trade or business carried on for profit by the United States, or any of its agencies, instrumentalities, or political subdivisions. Taxact2010 Students and apprentices (Article XX). Taxact2010   A full-time student, apprentice, or business trainee who is in Canada to study or acquire business experience is exempt from Canadian income tax on remittances received from any source outside Canada for maintenance, education, or training. Taxact2010 The recipient must be or must have been a U. Taxact2010 S. Taxact2010 resident immediately before visiting Canada. Taxact2010   An apprentice or business trainee can claim this exemption only for a period of one year from the date the individual first arrived in Canada for the purpose of training. Taxact2010 Pensions, Annuities, Social Security, and Alimony Under Article XVIII, pensions and annuities from Canadian sources paid to U. Taxact2010 S. Taxact2010 residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). Taxact2010 Canadian pensions and annuities paid to U. Taxact2010 S. Taxact2010 residents may be taxed by the United States, but the amount of any pension included in income for U. Taxact2010 S. Taxact2010 tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident. Taxact2010 Pensions. Taxact2010   A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. Taxact2010 It includes pensions paid by private employers and the government for services rendered. Taxact2010   Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada. Taxact2010   Pensions do not include social security benefits. Taxact2010 Roth IRAs. Taxact2010   A distribution from a Roth IRA is exempt from Canadian tax to the extent it would be exempt from U. Taxact2010 S. Taxact2010 tax if paid to a U. Taxact2010 S. Taxact2010 resident. Taxact2010 In addition, you may elect to defer any tax in Canada on income accrued within the Roth IRA but not distributed by the Roth IRA. Taxact2010 However, you cannot defer tax on any accruals due to contributions made after you become a Canadian resident. Taxact2010 Tax-deferred plans. Taxact2010   Generally, income that accrues in a Canadian RRSP or RRIF is subject to U. Taxact2010 S. Taxact2010 tax, even if it is not distributed. Taxact2010 However, a U. Taxact2010 S. Taxact2010 citizen or resident can elect to defer U. Taxact2010 S. Taxact2010 tax on income from the plan until the income is distributed. Taxact2010 Form 8891 is used to make the election. Taxact2010 Annuities. Taxact2010    An annuity is a stated sum payable periodically at stated times, during life, or during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). Taxact2010 Annuities do not include: Non-periodic payments, or An annuity the cost of which was deductible for tax purposes. Taxact2010 Special rules. Taxact2010    Special rules apply to pensions and annuities with respect to: Short-term assignments, Cross-border commuters, and Individuals who participate in a Canadian qualifying plan. Taxact2010 Generally, distributions in such cases are deemed to be earned in the country in which the plan is established, without regard to where the services were rendered. Taxact2010 Social security benefits. Taxact2010   U. Taxact2010 S. Taxact2010 social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. Taxact2010 Alimony. Taxact2010   Alimony and similar amounts (including child support payments) from Canadian sources paid to U. Taxact2010 S. Taxact2010 residents are exempt from Canadian tax. Taxact2010 For purposes of U. Taxact2010 S. Taxact2010 tax, these amounts are excluded from income to the same extent they would be excluded from income in Canada if the recipient was a Canadian resident. Taxact2010 Investment Income From Canadian Sources The treaty provides beneficial treatment for certain items of Canadian source income that result from an investment of capital. Taxact2010 Dividends (Article X). Taxact2010   For Canadian source dividends received by U. Taxact2010 S. Taxact2010 residents, the Canadian income tax generally may not be more than 15%. Taxact2010   A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary's voting stock. Taxact2010 However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation. Taxact2010   These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment. Taxact2010 Interest (Article XI). Taxact2010   Generally, Canadian source interest received by U. Taxact2010 S. Taxact2010 residents is exempt from Canadian income tax. Taxact2010   The exemption does not apply if the owner of the interest carries on, or has carried on, a business in Canada through a permanent establishment and the debt on which the income is paid is effectively connected with that permanent establishment. Taxact2010 Gains from the sale of property (Article XIII). Taxact2010   Generally, gains from the sale of personal property by a U. Taxact2010 S. Taxact2010 resident having no permanent establishment in Canada are exempt from Canadian income tax. Taxact2010 However, the exemption from Canadian tax does not apply to gains realized by U. Taxact2010 S. Taxact2010 residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada. Taxact2010   If the property subject to Canadian tax is a capital asset and was owned by the U. Taxact2010 S. Taxact2010 resident on September 26, 1980, not as part of the business property of a permanent establishment in Canada, generally the taxable gain is limited to the appreciation after 1984. Taxact2010 Royalties (Article XII). Taxact2010   The following are exempt from Canadian tax: Copyright royalties and other like payments for the production or reproduction of any literary, dramatic, musical, or artistic work (other than payments for motion pictures and works on film, videotape, or other means of reproduction for use in connection with television, which may be taxed at 10%), Payments for the use of, or the right to use, computer software, Payments for the use of, or the right to use, any patent or any information concerning industrial, commercial, or scientific experience (but not within a rental or franchise agreement), and Payments for broadcasting as agreed to in an exchange of notes between the countries. Taxact2010   This rate or exemption does not apply if the owner of the royalties carries on, or has carried on, a business in Canada through a permanent establishment and the right or property on which the income is paid is effectively connected with that permanent establishment. Taxact2010   This exemption (or lower rate) does not apply to royalties to explore for or to exploit mineral deposits, timber, and other natural resources. Taxact2010 Other Income Generally, Canadian source income that is not specifically mentioned in the treaty, may be taxed by Canada. Taxact2010 Gambling losses. Taxact2010   Canadian residents may deduct gambling losses in the U. Taxact2010 S. Taxact2010 against gambling winnings in the U. Taxact2010 S. Taxact2010 in the same manner as a U. Taxact2010 S. Taxact2010 resident. Taxact2010 Charitable Contributions United States income tax return. Taxact2010   Under Article XXI, you may deduct contributions to certain qualified Canadian charitable organizations on your United States income tax return. Taxact2010 Besides being subject to the overall limits applicable to all your charitable contributions under U. Taxact2010 S. Taxact2010 tax law, your charitable contributions to Canadian organizations (other than contributions to a college or university at which you or a member of your family is or was enrolled) are subject to the U. Taxact2010 S. Taxact2010 percentage limits on charitable contributions, applied to your Canadian source income. Taxact2010 If your return does not include gross income from Canadian sources, charitable contributions to Canadian organizations are generally not deductible. Taxact2010 Example. Taxact2010 You are a U. Taxact2010 S. Taxact2010 citizen living in Canada. Taxact2010 You have both U. Taxact2010 S. Taxact2010 and Canadian source income. Taxact2010 During your tax year, you contribute to Canadian organizations that would qualify as charitable organizations under U. Taxact2010 S. Taxact2010 tax law if they were U. Taxact2010 S. Taxact2010 organizations. Taxact2010 To figure the maximum amount of the contribution to Canadian organizations that you can deduct on your U. Taxact2010 S. Taxact2010 income tax return, multiply your adjusted gross income from Canadian sources by the percentage limit that applies to contributions under U. Taxact2010 S. Taxact2010 income tax law. Taxact2010 Then include this amount on your return along with all your domestic charitable contributions, subject to the appropriate percentage limit required for contributions under U. Taxact2010 S. Taxact2010 income tax law. Taxact2010 The appropriate percentage limit for U. Taxact2010 S. Taxact2010 tax purposes is applied to your total adjusted gross income from all sources. Taxact2010 Qualified charities. Taxact2010   These Canadian organizations must meet the qualifications that a U. Taxact2010 S. Taxact2010 charitable organization must meet under U. Taxact2010 S. Taxact2010 tax law. Taxact2010 Usually an organization will notify you if it qualifies. Taxact2010 For further information on charitable contributions and the U. Taxact2010 S. Taxact2010 percentage limits, see Publication 526, Charitable Contributions. Taxact2010 Canadian income tax return. Taxact2010   Under certain conditions, contributions to qualified U. Taxact2010 S. Taxact2010 charitable organizations may also be claimed on your Canadian income tax return if you are a Canadian resident. Taxact2010 Income Tax Credits The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. Taxact2010 In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. Taxact2010 For detailed discussions of the U. Taxact2010 S. Taxact2010 income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals. Taxact2010 See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U. Taxact2010 S. Taxact2010 citizens residing in Canada. Taxact2010 Competent Authority Assistance Under Article XXVI, a U. Taxact2010 S. Taxact2010 citizen or resident may request assistance from the U. Taxact2010 S. Taxact2010 competent authority when the actions of Canada, the United States, or both, potentially result in double taxation or taxation contrary to the treaty. Taxact2010 The U. Taxact2010 S. Taxact2010 competent authority may then consult with the Canadian competent authority to determine if the double taxation or denial of treaty benefits in question can be avoided. Taxact2010 If the competent authorities are not able to reach agreement in a case, binding arbitration proceedings may apply. Taxact2010 It is important that your request for competent authority assistance be made as soon as you have been notified by either Canada or the United States of proposed adjustments that would result in denial of treaty benefits or in double taxation. Taxact2010 This is so that implementation of any agreement reached by the competent authorities is not barred by administrative, legal, or procedural barriers. Taxact2010 For information that you should include with your request for competent authority assistance, see Revenue Procedure 2006-54, 2006-49 IRB 1035, available at www. Taxact2010 irs. Taxact2010 gov/irb/2006-49_IRB/ar13. Taxact2010 html. Taxact2010 The request should be addressed to:  Deputy Commissioner (International) Large Business and International Division Attn: Office of Tax Treaty  Internal Revenue Service 1111 Constitution Ave. Taxact2010 , NW Routing: MA3-322A Washington, D. Taxact2010 C. Taxact2010 20024 In addition to a timely request for assistance, you should take the following measures: File a timely protective claim for credit or refund of U. Taxact2010 S. Taxact2010 taxes on Form 1040X, Form 1120X, or amended Form 1041, whichever is appropriate. Taxact2010 This will, among other things, give you the benefit of a foreign tax credit in case you do not qualify for the treaty benefit in question. Taxact2010 For figuring this credit, attach either Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), or Form 1118, Foreign Tax Credit — Corporations, as appropriate. Taxact2010 Attach your protective claim to your request for competent authority assistance. Taxact2010 Take appropriate action under Canadian procedures to avoid the lapse or termination of your right of appeal under Canadian income tax law. Taxact2010 How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS and the Canada Revenue Agency in several ways. Taxact2010 Text of Treaty You can get the text of the U. Taxact2010 S. Taxact2010 —Canada income tax treaty from: Superintendent of Documents U. Taxact2010 S. Taxact2010 Government Printing Office P. Taxact2010 O. Taxact2010 Box 371954 Pittsburgh, PA 15250-7954 The treaty can also be found on the Internet at IRS. Taxact2010 gov. Taxact2010 U. Taxact2010 S. Taxact2010 Taxation During the filing season, the IRS conducts a taxpayer assistance program in Canada. Taxact2010 To find out if IRS personnel will be in your area, you should contact the consular office at the nearest U. Taxact2010 S. Taxact2010 Embassy or consulate. Taxact2010 Mail. Taxact2010 For answers to technical or account questions, you can write to:   Internal Revenue Service International Section Philadelphia, PA 19255-0525 Phone. Taxact2010 You can call the IRS for help at (267) 941-1000 (not a toll-free call). Taxact2010 Canadian Taxation You can get information on Canadian taxation from the Canada Revenue Agency. Taxact2010 The International Tax Services Office can be contacted on 1-800-267-5177 (from anywhere in Canada and the U. Taxact2010 S. Taxact2010 ) or on the Internet at www. Taxact2010 cra-arc. Taxact2010 gc. Taxact2010 ca. Taxact2010 Prev  Up  Next   Home   More Online Publications