U.S. Citizens in Canada InfoShop

Archive for August 2011

2011 Aug 31 – IRS Should

IRS should lighten up on Americans living in Canada [editorial]
Vancouver Sun (31 Aug 2011) A14


The editorial calls for leniency from the IRS and commends Canadian refusal “to take part in this witch hunt.”

Written by usxcanada

31 August 2011 at 6:00 am

2011 Aug 30 – Uechi

Jenny Uechi
Deadline for disclosure
Vancouver Observer (30 Aug 2011)


The Sept 9 OVDI deadline approaches. Two personal stories: Dawn C. in Vancouver “never lived or worked in the U.S.” Clarissa came to Canada in 1975, became a citizen in 1980, and has a single-nationality Canadian husband. Tax accountant Steve Flynn points to the option of quiet disclosure with risk of review or audit.

Written by usxcanada

30 August 2011 at 6:00 am

2011 Aug 27 – Sullivan

Paul Sullivan
Voluntarily disclose your offshore accounts, or else
New York Times (27 Aug 2011) B5


Sullivan describes two options from the perspective of US residents — “join the program or go it alone and take your chances” — and three groups that would benefit from OVDI: (1) offshore inherited money (2) offshore accounts (3) willful offshore tax evasion.

Written by usxcanada

27 August 2011 at 6:00 am

2011 Aug 26 – IRS Sweep

IRS sweep: U.S. citizens victimized
Windsor Star (26 Aug 2011)


CRA will not enforce US penalties in Canada. “The gall of the U.S. government is astonishing, as is its intended reach.”

Written by usxcanada

26 August 2011 at 7:00 am

2011 Aug 26 – Johnson

Kevin Johnson
Going quietly into the night may not be the best idea for U.S. citizens living abroad
Forbes (26 Aug 2011)


“The IRS has indicated that it will be looking for individuals who make quiet disclosures and will audit those individuals.” Consequently, a 5 percent penalty under OVDI may offer less risk.

Written by usxcanada

26 August 2011 at 6:00 am

2011 Aug 25 – Americans

Americans in Canada may be unknowing tax evaders
CBC News (25 Aug 2011)


Windsor professor Christina Simmons has lived in Canada for 25 years and is now trying to become compliant with US tax requirements.

Written by usxcanada

25 August 2011 at 6:00 am

2011 Aug 25 – Welch

Mary Agnes Welch
Americans renounce citizenship over taxes
Winnipeg Free Press (25 Aug 2011) B4


Julie Veilleux of Lac du Bonnet MB may face at least $80,000 in fines. Born in Ohio, departing the United States after eight years, Veilleux has lived in Canada for almost forty years and became a Canadian citizen in 1995. Veilleux and her sister travelled to Calgary earlier in August to renounce US citizenship. “Veilleux fears the worst — being sued by the IRS, being stopped at the border or having a lien placed against her family’s modest bungalow.”

Written by usxcanada

25 August 2011 at 6:00 am

2011 Aug 24 – Cayo

Don Cayo
Verbatim: What Canada says about collecting IRS non-filing penalties
Vancouver Sun [Blog] (24 Aug 2011)


[ Also at: http://blogs.vancouversun.com/2011/09/08/reposting-canadian-government-wont-hound-residents-for-the-irs/ ]

Cayo posts “the full text of the statement, unedited” emailed to him by a Department of Finance employee “who asked that it be attributed to the department itself, not to any individual.” CRA will not enforce for the US in Canada: (1) FBAR penalties (2) “the U.S. tax liability of a Canadian citizen if the individual was a Canadian citizen at the time the liability arose.”

Written by usxcanada

24 August 2011 at 6:00 am

2011 Aug 22 – Cayo

Don Cayo
Opinion: Canada Revenue Agency won’t pile on victims of IRS campaign against Canadian residents
Vancouver Sun (22 Aug 2011) C3


Cayo has been contacted by “dozens of frightened expat Americans.” He reports on a statement that he obtained from Canada’s federal finance department, to the effect that FBAR reporting requirement penalties will not be collected by Canada. Further, Canada will not enforce US tax collection against its own citizens “if the individual was a Canadian citizen at the time the liability arose.” Cayo concludes with a look at the options for relinquishing or renouncing US citizenship.

Written by usxcanada

22 August 2011 at 6:00 am

2011 Aug 20 – Cayo

Don Cayo
Ordinary citizens or big banks — the IRS threatens them all
Vancouver Sun (20 Aug 2011) H2


“An IRS campaign against tax fraud … may also mean huge penalties for thousands — maybe hundreds of thousands — who owe no tax but have failed to file some required forms.” In addition, the proposals of FATCA would have serious impact on Canadian bankers.

Written by usxcanada

20 August 2011 at 8:00 am

2011 Aug 20 – Cayo

Don Cayo
Standing up to the IRS: bankers join citizens in the fray
Vancouver Sun [Blog] 20 Aug 2011


“Ordinary citizens find themselves on the same side as international bankers in a tussle with Big Brother.” The IRS made minimal response to queries from this reporter.

Written by usxcanada

20 August 2011 at 7:00 am

2011 Aug 20 – Hall

Dave Hall
U.S. tax rules could penalize Americans here
Windsor Star (20 Aug 2011)


Gordon Lee, a Windsor accountant specializing in Canada-U.S. tax issues, describes the IRS “witch hunt to find average citizens who have really done nothing wrong.”

Written by usxcanada

20 August 2011 at 6:00 am

2011 Aug 19 – Cayo

Don Cayo
U.S. citizens living in Canada face risk of massive tax penalties
Vancouver Sun (19 Aug 2011) A1, A9


A front-page story headlines the plight of most US citizens resident in Canada. Accountant Warren Dueck describes the circumstances imposed by OVDI and FATCA. “The American consulate in Vancouver estimates 90,000 [affected individuals] in this region alone.”

Written by usxcanada

19 August 2011 at 9:00 am

2011 Aug 19 – Cayo

Don Cayo
What are risks, options for U.S. citizens facing big tax penalties?
Vancouver Sun [Blog] (19 Aug 2011)


Tax accountant Warren Dueck sketches two hypothetical case studies of persons who could be affected by OVDI.

Written by usxcanada

19 August 2011 at 8:00 am

2011 Aug 19 – Hundreds

Hundreds of thousands in Canada must meet Aug. 31 deadline or face punitive U.S. fines
Global News (19 Aug 2011)


The US Embassy estimates “about a million U.S. and dual citizens live in Canada. … Only 30,067 U.S. citizens reported Canadian-earned income to the IRS in 2006, the most recent year statistics are available.”

Written by usxcanada

19 August 2011 at 7:00 am

2011 Aug 19 – Uechi

Jenny Uechi
Tax penalties on U.S.-Canadian citizens in Canada “outrageous,” MP Don Davies says
Vancouver Observer (19 Aug 2011)


Case cited of West Vancouver dual citizen resident in Canada for 35 years. “This is about a transfer of wealth from Canadian citizens to the U.S., and it’s affecting hundreds of thousands of people in Canada,” says Davies.

Written by usxcanada

19 August 2011 at 6:00 am

2011 Aug 8 – U.S. Crackdown

U.S. crackdown on tax evasion hits dual citizens
CBC News New Brunswick (8 Aug 2011)


“Many Americans who live in Canada and have dual citizenship are likely breaking the law unknowingly.” The deadline for application to 2011 OVDI approaches.

Written by usxcanada

8 August 2011 at 6:00 am