U.S. Citizens in Canada InfoShop

Glossary

 
Terms, phrases, and acronyms

 
 
CRA
Canada Revenue Agency “administers tax laws for the Government of Canada and for most provinces and territories.”

 
Certificate of Loss of Nationality (CLN)
The circumstances under which the U.S. Department of State issues a CLN to an individual are outlined at Advice about Possible Loss of U.S. Citizenship and Dual Nationality.

 
FATCA
The Foreign Account Tax Compliance Act requires individuals to report to the IRS on “specified foreign financial assets that exceed certain thresholds” using Form 8938 starting with the 2011 taxation year, as well as starting to implement requirements for “foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers.” Details can be found through the IRS information page.

 
FBAR
The term that the IRS uses to refer to Report of Foreign Bank and Financial Accounts (FBAR) and related Form TD F 90-22.1. The IRS provides FAQs and Reference for FBAR.

 
IRS
The United States Internal Revenue Service describes itself in this fashion: “The Internal Revenue Service is the nation’s tax collection agency and administers the Internal Revenue Code enacted by Congress.”

 
OVDI
Offshore Voluntary Disclosure Initiative is an IRS program offering “a uniform penalty structure for taxpayers” to come forward voluntarily and “report their previously undisclosed foreign accounts and assets.” On 9 Jan 2012 the IRS announced a third 2012 indefinite continuation of the program. The second 2011 OVDI ran from 8 Feb 2011 to 9 Sept 2011. For details see the IRS 2011 Offshore Voluntary Disclosure Initiative Frequently Asked Questions and Answers. The 2011 program extended the procedures of the first 2009 OVDP.

 
PFIC
Passive Foreign Investment Company — Holdings are to be reported on new IRS Form 8938.
 

[ Last update 31 August 2012 ]
 

Written by usxcanada

1 January 2012 at 12:00 pm