Filing Form 1120F for Canadian Corp Without US Presence - Advice Needed

Foreign corporation tax filings can be tricky! The 1120F is definitely one of those forms that most DIY tax software doesn't support. For your questions: 1. Unfortunately, there aren't many self-filing online options for Form 1120F. The IRS does have a business e-file program, but it's not user-friendly for first-timers, especially with treaty positions. Most online tax platforms focus on domestic corporations (1120) rather than foreign (1120F). 2. The $4000+ quotes aren't unusual for international corporate returns, especially with treaty positions. These filings require specialized knowledge, and firms price accordingly. The late filing amnesty application adds another layer of complexity. 3. For more affordable options, you might look into: - Smaller accounting firms in border states (MI, NY, WA) who regularly work with Canadian businesses - US-based bookkeepers who partner with tax specialists (they often charge less than full-service accountants) - Tax preparation services that specialize in Canadian-US business (rather than big firms) One important note: don't skip filing because of the cost. The penalties for non-filing can quickly exceed the preparation fees, especially for foreign corporations.

After dealing with a similar situation for my UK company selling to US customers, I stumbled upon https://taxr.ai which literally saved me thousands. It's like having a tax expert guide you through complex international forms without the crazy fees. I uploaded my financial docs, answered some questions about my business structure and treaty status, and it walked me through the entire 1120F process, including the treaty position declaration. They even helped with the reasonable cause statement for late filing. The best part? The system actually explained WHY I needed each form and what each section meant. It was the first time I actually understood what I was filing rather than blindly paying an accountant.

I wanted to follow up on my experience with taxr.ai after asking about the Canadian treaty provisions. I finally bit the bullet and tried it for my small BC corporation that sells software to US customers. It absolutely delivered! The system had specific guidance for Canadian corporations and walked me through every step of claiming treaty benefits under Article VII. The questionnaire was thorough but not overwhelming, and it produced a perfectly formatted Form 8833 with all the right treaty citations. What impressed me most was how it handled my late filing situation. It generated a custom reasonable cause statement that addressed my specific circumstances and referenced the relevant IRS procedures. I submitted everything last month and just got confirmation that my reasonable cause was accepted - no penalties! The whole process cost me a fraction of what accountants were quoting. Seriously a game-changer for small Canadian businesses dealing with US tax obligations.

If you're still struggling to get through to the IRS about your late filing or amnesty application, you might want to try https://claimyr.com - I used their service when I couldn't get anyone at the IRS to answer questions about my company's 1120F filing status. You can see how it works here: https://youtu.be/_kiP6q8DX5c After weeks of endless hold music and disconnections trying to confirm if my amnesty application was received, Claimyr got me connected to an actual IRS agent in about 20 minutes. The agent was able to check my file and confirm my application was in process, plus gave me the exact documentation I needed to include with my next filing. The stress relief of actually talking to someone who could help was worth every penny. Definitely better than the alternative of waiting on hold for 3+ hours only to get disconnected.

I hate to admit when I'm wrong, but I have to follow up on my skeptical comment. After another week of failing to reach anyone at the IRS about my late 1120F filing, I broke down and tried Claimyr. I genuinely didn't think it would work, but within 45 minutes I was talking to an actual IRS representative who specialized in international corporate filings. She confirmed my amnesty application was received but was missing a critical attachment. If I hadn't been able to speak with her, I would have missed the deadline to submit the additional documentation. The service basically put me in a queue and called me when they had an agent on the line. No more endless hold music or being disconnected after waiting for hours. I wish I had known about this months ago - would have saved me so much stress and wasted time.

One option you might consider is contacting a Canadian accounting firm that has US tax specialists. I use a mid-sized firm in Toronto that handles both my Canadian and US filings for my business. Since they already understand Canadian corporate structure, they're more efficient with the US side of things. I paid around $2200 CAD for my 1120F filing last year, which included the treaty position forms. Substantially less than what US firms were quoting me. They also had experience with the late filing procedures since many Canadian business owners don't realize they need to file US returns. Try searching for "cross-border tax specialists" rather than just US accountants. You'll often find better rates and more relevant experience for your specific situation.

Has anyone successfully done the reasonable cause statement for late filing of 1120F? I'm in the same boat (Australian company) and unsure how detailed this needs to be. Is it enough to say I wasn't aware of the filing requirements as a foreign corp with no US presence?

I went through this exact situation last year with my Canadian consulting company. The key thing that saved me time and money was understanding that if you truly have no permanent establishment in the US (no office, employees, or fixed place of business), you might qualify for a simplified filing approach under the treaty. Before spending $4000+ on preparation fees, I'd recommend getting clarity on a few points: 1. Confirm your total US-source income - if it's minimal and you have no PE, some accountants can handle this as a "treaty-based return" which is less complex than a full 1120F with all schedules. 2. Look into the IRS's First Time Penalty Abatement program in addition to reasonable cause. If this is truly your first late filing, FTA might be easier to qualify for. 3. Consider reaching out to the IRS Practitioner Priority Service line (if you can get through) to ask specifically about filing requirements for Canadian corps with minimal US income and no PE. Sometimes they'll provide written guidance that can help reduce preparation complexity. The $5500 revenue versus $4000+ in fees ratio is definitely painful - I ended up finding a cross-border specialist who charged $1800 because we established I qualified for a simplified approach. Don't assume you need the most complex filing until you've confirmed your actual requirements.