6 worked US Form 1120-S Filing case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to us form 1120-s filing work, not a specific client's file.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $128,000 Freed — US-Facing Canadian Corporation, Winnipeg
Client: A Canadian corporation with US customers · Where: Winnipeg, Manitoba · Engagement: 7 weeks, fixed fee
Cash freed$128,000
Compliance failuresNone
ReportingMonthly
The situation — A Canadian corporation with US customers, Winnipeg, Manitoba
A Canadian corporation with US customers in Winnipeg, Manitoba was opening in a second province — different filing obligations, a different payroll regime, and US tax paid but no foreign tax credit claimed on the Canadian return already in the file.
What we did for A Canadian corporation with US customers, Winnipeg, Manitoba
We registered the payer for a non-resident withholding account, remitted the Regulation 105 amounts due, and applied for waivers covering the rest of the contract and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result — A Canadian corporation with US customers, Winnipeg, Manitoba
Growth was absorbed without a compliance failure. $128,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 2 · Deadline rescue
11-Week Turnaround Beat The Deadline And Saved $69,000 — Non-Resident Landlord, Halifax
Client: A non-resident owning Canadian rental property · Where: Halifax, Nova Scotia · Engagement: 11 weeks, fixed fee
Late-filing penalty avoided$69,000
Filed with13 days to spare
Next yearPapers ready
The situation — A non-resident owning Canadian rental property, Halifax, Nova Scotia
With the deadline for us form 1120-s filing weeks away, a non-resident owning Canadian rental property in Halifax, Nova Scotia was carrying invoices paid to a non-resident consultant working on site in Canada with no Regulation 105 withholding taken. The exposure if the date slipped was around $69,000.
What we did for A non-resident owning Canadian rental property, Halifax, Nova Scotia
We aligned the Canadian and US reporting of the same income so the foreign tax credit claim carried support on both returns. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A non-resident owning Canadian rental property, Halifax, Nova Scotia
Filed with 13 days to spare. $69,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Sale and succession
Intergenerational Transfer Completed With $390,000 Deferred — Mid-Year Emigrant, Burnaby
Client: An emigrant who left Canada mid-year · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Tax deferred$390,000
TransferCompleted
RecordsReview-ready
The situation — An emigrant who left Canada mid-year, Burnaby, British Columbia
A generational transfer at an emigrant who left Canada mid-year in Burnaby, British Columbia had been discussed for years without a plan. No valuation on file to support the price the parties had agreed meant the transfer as contemplated would have been fully taxable.
What we did for An emigrant who left Canada mid-year, Burnaby, British Columbia
We filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund, sequencing the steps so each one was complete and documented before the next depended on it.
The result — An emigrant who left Canada mid-year, Burnaby, British Columbia
$390,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 4 · Missed incentive claimed
$25,500 Credit Claim Filed And Accepted Without Adjustment — Inbound Assignee, Kitchener
Client: An inbound transferee on assignment · Where: Kitchener, Ontario · Engagement: 4 weeks, fixed fee
Claim value$25,500
AcceptedWithout adjustment
RepeatableAnnually
The situation — An inbound transferee on assignment, Kitchener, Ontario
An inbound transferee on assignment in Kitchener, Ontario assumed the credits did not apply to a business its size. Winters spent in the United States with the day count kept casually and no residency position documented anywhere meant they had applied all along.
What we did for An inbound transferee on assignment, Kitchener, Ontario
We identified the qualifying activity, built the documentation to support it, and applied the treaty rate to the dividend withholding, filed the NR4 return, and remitted the shortfall before the CRA assessed the payer for it.
The result — An inbound transferee on assignment, Kitchener, Ontario
$25,500 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 5 · Cash and remittance control
Remittance Schedule Corrected, $65,000 Refunded — US Branch Operator, Windsor
Client: A Canadian corporation operating a US branch · Where: Windsor, Ontario · Engagement: 3 weeks, fixed fee
Overpayment refunded$65,000
Late remittances sinceZero
ScheduleAutomated
The situation — A Canadian corporation operating a US branch, Windsor, Ontario
Remittances at a Canadian corporation operating a US branch in Windsor, Ontario were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat foreign accounts that had passed the $100,000 T1135 threshold three years earlier.
What we did for A Canadian corporation operating a US branch, Windsor, Ontario
We filed the outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A Canadian corporation operating a US branch, Windsor, Ontario
Penalties stopped from the following remittance onwards, and $65,000 of overpaid instalments was refunded.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $8,000 In Unclaimed Input Tax Found — Florida Property Owner, Kelowna
Client: A family with a Florida vacation property · Where: Kelowna, British Columbia · Engagement: 9 weeks, fixed fee
Unclaimed tax found$8,000
Records rebuilt9 months
ProcessDocumented
The situation — A family with a Florida vacation property, Kelowna, British Columbia
A family with a Florida vacation property in Kelowna, British Columbia could not answer basic questions about its own numbers, because a US LLC taxed as a corporation in Canada, producing double tax on the same income sat between the bank statements and the ledger.
What we did for A family with a Florida vacation property, Kelowna, British Columbia
We reported the deemed disposition properly on the departure return and claimed the foreign tax credits that had been left unused, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A family with a Florida vacation property, Kelowna, British Columbia
Records rebuilt and reconciled, $8,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
