Individuals can register with CRA to be notified by email when CRA’s files indicate that the individual’s address has changed, banking information for direct deposit has changed, or if mail sent by CRA was returned.
Did you know that medical expense claims for reproductive technologies have been extended to include situations where the patient does not have a medical condition preventing conception? Claims will be allowed for 2007 and later years.
For more information, see https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2017-building-a-strong-middle-class/medical-expenses-tax-credit-metc-reproductive-technologies.html.
The CRA Charity Directorate provides a number of fairly comprehensive and easy to read checklists relating to various responsibilities associated with operating a registered charity. These can be particularly helpful as a reminder for individuals who are involved (employee, volunteer, or even Board Member) with a charitable organization. For example, clear guidance is provided on what is required to be included on a donation receipt for both cash and non-cash donations.
Provided checklists include: Basic guidelines, Activities, Books and records, Receipting, Spending requirement, T3010, Legal status, Changes, GST/HST, and Terrorism.
The Checklists can be found at https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/checklists-charities.html.
If participating as a Board Member with a charitable organization, it may be useful to encourage or require use of these checklists by staff or volunteers.
The IRS has recently noted that they are rolling out campaigns to focus on entities below the “big fish” that have historically been targeted. Such campaigns include:
- Related party transaction campaign – a redefined focus on mid-market entities to determine compliance with U.S. transfer pricing requirements.
- Inbound distributor campaign – reviewing whether S. affiliates distributing imports from other countries are realizing adequate returns based on their assets, risks assumed, and functions performed.
- Form 1120-F non-filer campaign – targeting corporations (the IRS believes there are many) with a S. permanent establishment or branch which have not filed U.S. income tax returns. The IRS indicates external data sources will be used to identify these companies, commencing with a “soft letter outreach”. There is no indication of any amnesty, meaning penalties and interest are likely for Canadian corporations which have not complied with any U.S. filing obligations.
If operating as a mid-market business in the U.S., be prepared for the possibility of more scrutiny from the IRS.