ETrade Notice of Canadian Backup Withholding
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ETrade Notice of Canadian Backup Withholding Our club received this notice today from ETrade. "IMMEDIATE ACTION REQUIRED Your account may be subject to back-up withholding tax of 25% on taxable dividend payments if you do not certify your business and/or trust accounts under the Canada Revenue Agency (CRA) regulations." I downloaded the form and it is quite lengthy, and requires information on all our members, We are located in the US and all our members are US citizens. We have no stock in Canadian companies. Has anyone else received this notice? How did you deal with it? How is it that Canada can require this of US Citizens? Dear Thomas, This may just be record keeping that E*Trade is trying to put in place in case you do purchase a Canadian Stock. It shouldn't be an issue if you are not receiving any dividends from Canadian stocks. They should be able to clarify this for you. The file attached describes the withholding requirements further. It was put together by Ira Smilovitz last year when the topic first came up. Laurie Frederiksen www.bivio.com Thomas W. Wagoner on 10/30/2013 Our club received this notice today from ETrade. "IMMEDIATE ACTION REQUIRED Your account may be subject to back-up withholding tax of 25% on taxable dividend payments if you do not certify your business and/or trust accounts under the Canada Revenue Agency (CRA) regulations." I downloaded the form and it is quite lengthy, and requires information on all our members, We are located in the US and all our members are US citizens. We have no stock in Canadian companies. Has anyone else received this notice? How did you deal with it? How is it that Canada can require this of US Citizens? TDAM did this last year. I filled out the form with Ira's help and we get our Canadian dividends and foreign tax credit with no hiccups. Marcia Meltzer On Wed, Oct 30, 2013 at 1:49 PM, Laurie Frederiksen <laurie@bivio.biz> wrote: Dear Thomas, Thanks so much for your quick replies. I will double check our stocks, but I'm pretty sure that we have no Canadian holdings. If that's the case I will skip filling out the form for now. Thanks again, Tom Wagoner Does this apply to ADR's? From: Laurie Frederiksen <laurie@bivio.biz> To: club_cafe@bivio.com Sent: Wednesday, October 30, 2013 10:49 AM Subject: [club_cafe] Re: ETrade Notice of Canadian Backup Withholding Dear Thomas, This may just be record keeping that E*Trade is trying to put in place in case you do purchase a Canadian Stock. It shouldn't be an issue if you are not receiving any dividends from Canadian stocks. They should be able to clarify this for you. The file attached describes the withholding requirements further. It was put together by Ira Smilovitz last year when the topic first came up. Laurie Frederiksen http://www.bivio.com/ Thomas W. Wagoner on 10/30/2013 Our club received this notice today from ETrade. "IMMEDIATE ACTION REQUIRED Your account may be subject to back-up withholding tax of 25% on taxable dividend payments if you do not certify your business and/or trust accounts under the Canada Revenue Agency (CRA) regulations." I downloaded the form and it is quite lengthy, and requires information on all our members, We are located in the US and all our members are US citizens. We have no stock in Canadian companies. Has anyone else received this notice? How did you deal with it? How is it that Canada can require this of US Citizens? Yes. If they are ADR's of a Canadian Company. Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Wed, Oct 30, 2013 at 11:47 PM, Linda Lee <lindalee0@yahoo.com> wrote:
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