6 US Form 1040 Filing tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to us form 1040 filing work, not a general example.
Case Study 1 · Deadline rescue
$59,000 Late-Filing Penalty Cancelled On Relief Application — Shareholder of a US, Calgary
Client: A shareholder of a US LLC · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Penalty cancelled$59,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A shareholder of a US LLC in Calgary, Alberta had already missed one deadline and was about to miss a second. Behind it sat foreign accounts that had passed the $100,000 T1135 threshold three years earlier, and a penalty of $59,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $59,000 of the penalty already assessed on the earlier year.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $17,500 Vacated — Canadian with a US, Toronto
Client: A Canadian with a US employer · Where: Toronto, Ontario · Engagement: 9 weeks, fixed fee
Assessment vacated$17,500
Supporting recordsNow on file
AccountCleared
The situation
A Canadian with a US employer in Toronto, Ontario was carrying $17,500 of penalties and interest arising from US tax paid but no foreign tax credit claimed on the Canadian return, much of it accumulated during a period the CRA itself had delayed.
What we did
We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $17,500 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Records and systems rebuilt
Books Rebuilt From Source, $19,000 In Unclaimed Input Tax Found — Dual Citizen with a, Lethbridge
Client: A dual citizen with a US retirement account · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Unclaimed tax found$19,000
Records rebuilt27 months
ProcessDocumented
The situation
A dual citizen with a US retirement account in Lethbridge, Alberta could not answer basic questions about its own numbers, because a departure year filed as a normal resident return with no deemed disposition reported sat between the bank statements and the ledger.
What we did
We filed the outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $19,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Planning that cut the bill
$46,000 Cut From The Annual Tax Bill — Snowbird Spending Winters in, Guelph
Client: A snowbird spending winters in Arizona · Where: Guelph, Ontario · Engagement: 8 weeks, fixed fee
First-year saving$46,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A snowbird spending winters in Arizona in Guelph, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left 25% withholding on gross Canadian rent where a section 216 election would have taxed only the net on the table.
What we did
We modelled the current position against the alternatives before changing anything, then filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund.
The result
The change saved $46,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 5 · Cash and remittance control
$148,000 Of Working Capital Freed From The Tax Cycle — US Citizen Living in, Kelowna
Client: A US citizen living in Canada · Where: Kelowna, British Columbia · Engagement: 7 weeks, fixed fee
Working capital freed$148,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A US citizen living in Canada in Kelowna, British Columbia was profitable on paper and short of cash every month. A US LLC taxed as a corporation in Canada, producing double tax on the same income explained most of the gap.
What we did
We reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$148,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 6 · Scaling without breaking
Scaled To 62 Staff With $116,000 Of Working Capital Freed — Canadian Resident with a, Barrie
Client: A Canadian resident with a US rental property · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Headcount reached62
Working capital freed$116,000
Missed deadlinesZero
The situation
A Canadian resident with a US rental property in Barrie, Ontario was growing fast — headcount to 62 in eighteen months — and the back office had not kept up. Foreign accounts that had passed the $100,000 T1135 threshold three years earlier was the first thing to break.
What we did
We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 62 staff with no missed remittance and no late filing. $116,000 of working capital was freed in the process.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
