Children’s Art Credit

New for the 2011 taxation year is the Children’s Art Credit, which is similar to the Children’s Fitness Credit. You can claim a maximum of $500 per child for amounts paid for a prescribed program of artistic, cultural, recreational, or developmental activity.

To be eligible the child must have been under 16 at the beginning of 2011. Children with disabilities must be under 18 years old at the beginning of 2011 and are eligible for a maximum claim of $1,000 per child.

To qualify the program must be either a minimum of 8 consecutive weeks long or 5 consecutive days long. It must be supervised and suitable for children.

It must also meet one of these criteria:

  •  it contributes to the development of creative skills or expertise in an artistic or cultural activity;
  • it provides a substantial focus on wilderness and the natural environment;
  • it helps children develop and use particular intellectual skills;
  • it includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or
  • it provides enrichment or tutoring in academic subjects.

Please note that programs which are part of a school curriculum are not eligible.

For more information contact your local Kemp Harvey Group office.

Holiday Hours in Grand Forks

The Grand Forks office will be closed from Saturday December 24, 2011 and will reopen on Tuesday January 3, 2012. Starting January 3, 2012 our office hours will be 8:00am – 5:00pm.

Thank you to everyone who brought in a food donation for the Community Christmas Hamper Program.

Happy Holidays!

From the Grand Forks Partners and Staff.


Sanity by IRS

(Courtesy of Jim Burch)

Montreal Gazette

On the heels of comments last week from U.S. Ambassador to Canada David Jacobson, the U.S. Internal Revenue Service quietly posted on its website an update to the information for citizens living abroad.

The fact sheet, which the website lists as last updated on Wednesday, largely confirms what Jacobson said was expected to come from the IRS, stating that no penalties will be imposed on late returns where no tax is due and failure to file required bank account information will also be forgiven for “reasonable cause.”

Read more:


IRS Fact Sheet

Here is a link to the IRS Fact Sheet ->,,id=250788,00.html

1.  U.S. income tax return filing requirement

As a United States citizen, you must file a federal income tax return for any tax year in which your gross income is equal to or greater than the applicable exemption amount and standard deduction.  For information about whether you must file a federal income tax return for a particular tax year, including exemption amounts and standard deductions, see Publication 501 (Exemptions, Standard Deduction, and Filing Information) for that year.    Generally, you are required to report your worldwide income on your federal income tax return.  This means that you should report all income, regardless of which country is the source of the income.  Generally, you only need to file returns going back six years.

New rules for federal not-for-profit organizations

Are you a federally incorporated not-for-profit organziation? On October 17, 2011 the new Canada Not-for-profit Corporations Act came into force. This Act is designed to simplify processes, procedures and requirements. This Act will apply to any federal non-share capital corporations incorporated after October 17, 2011. Federal corporations, such as Canadian charities incorporated under the old Act, may continue to operate under the old Act until October 17, 2014. However failure to transition within this time period could result in dissoultion of the corporation by Corporations Canada.

Contact your local KH Group office for more information or visit: