Archive for August 2012
Instructions for new streamlined filing compliance procedures for non-resident, non-filer U.S. taxpayers
IRS (31 Aug 2012)
“This procedure is available for non-resident U.S. taxpayers who have resided outside of the U.S. since January 1, 2009 and who have not filed a U.S. tax return during the same period. These taxpayers must present a low level of compliance risk as described.”
Kim G.C. Moody / Roy A. Berg
Tax in Canada and the US: the differences that really matter
Moodys Tax Advisors (29 Aug 2012)
The authors highlight seven separate points as key differences: (1) Taxation of individuals (2) Estate tax (3) Corporate taxation (4) Foreign reporting requirements (5) Double taxation (6) Variations in exit/departure tax (7) Status of paid tax preparers. Item 5 provides a link to another essential posting of theirs that has continuing value (and so is featured in the selective reading list appended to the Start Here section). Item 7 provides the fact that “according to the IRS there are only 2,392 such [qualified] individuals in all of Canada.”
Roy A. Berg
IRS says FBAR penalties not collectible under Canada-US Treaty?
Moodys Tax Advisors (22 Aug 2012)
Canadian tax professionals pursue verification of Canadian government claims that IRS had confirmed that FBAR penalties would lie outside the scope of the Canada-US treaty — and find no supporting evidence.
Current relinquishment cases in Canada demonstrate the need for guidance
Flott & Co (16 Aug 2012)
A law firm specializing in United States citizenship issues describes two Canadian cases where US officials seemed less than clear and efficient in handling relinquishments.
Why Canadian residents may soon owe tax to the IRS
Moodys Tax Advisors (13 Aug 2012)
Expiration of current taxation provisions and/or the budgetary situation of the United States make it possible, even likely, that Canadian residents subject to US taxation will soon owe taxes to the United States.
The renouncers: who gave up U.S. citizenship, and why?
Wall Street Journal (2 Aug 2012)
Saunders has put time and effort into trying to get a handle on the latest quarterly list of persons abandoning U.S. citizenship. The closing two paragraphs aptly focus on a case motivated by “frustration with paperwork generated by a flurry of new laws aimed at policing offshore accounts.”