U.S. Citizens in Canada InfoShop

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Specific information with sources

In 2010, 1,485 Americans renounced U.S. citizenship — more than twice the figure for 2009, and six to seven times the figure for 2008.  —  Renunciations of US citizenship

Of the 194 states in the world, the United States is the only first-world country to tax on the basis of citizenship. Only one other nation taxes in this fashion [Eritrea].  —  Sokol

According to cross-border tax adviser Terry Ritchie, out of some seven million Americans living abroad, only about 4.6 per cent have been filing returns in the United States.  —  Freeman

For 2006 (the most recent statistics available) there were 30,067 U.S. citizens reporting Canadian-earned income [on Form 2555] to the IRS.  —  Hundreds
[Official source for this figure is: Scott Hollenbeck / Maureen Keenan Kahr. Individual foreign-earned income and foreign tax credit, 2006. Statistics of income bulletin (spring 2009) S7 http://www.irs.gov/taxstats/indtaxstats/article/0,,id=96621,00.html  — link is SOI bulletin articles, 2006, bottom of screen. Likely date for availability of 2011 data (every five years) can be extrapolated to 2014.]

Census of Canada data for 2006 shows 226,755 people reporting either single or dual U.S. citizenship, with 48,945 of those located in BC.  —  Wilson

The American consulate in Vancouver estimates 90,000 affected individuals in this region alone.  —  Cayo

A best guess for the number of U.S. citizens in Calgary ranges from 80,000 to 100,000.  —  Toneguzzi

In more than 4 out of 5 of 3233 responses (as of 14 Jan 2012) to a Globe and Mail online poll, individual U.S. citizens in Canada indicate either uncertainty or an intention to do nothing in the belief that they can remain undiscovered by U.S. authorities.  —  G&M Poll

The U.S. State Department estimates that 6.32 million U.S. citizens reside outside the United States.  —  AARO

The United States Elections Project (USEP) at George Mason University tabulates an estimated figure of 4,972,217 for “overseas eligible” U.S. voters for the 2008 presidential election. This figure obviously would not include persons under the age of 18.  —  USEP

An estimated five to seven million U.S. citizens reside abroad. Many citizens residing in the U.S. also have FBAR filing requirements. In 2008 the IRS received only 218,840 FBAR filings.  (225-226)
—  “The IRS’s Offshore Voluntary Disclosure Program ‘bait and switch’ may undermine trust for the IRS and future compliance programs,” p. 206-272 in 2011 annual report to Congress (Taxpayer Advocate Service)

FBAR filing far more than doubled in two years, from 276,386 in 2009 to 618,134 in 2011.  —  Knowlton

For tax year 2009, 88 percent of all taxpayers claiming the foreign earned income exclusion did not have U.S. tax liability after applying the exclusion. After the application of the foreign tax credit, only about nine percent of these taxpayers had a U.S. tax liability.
 —  “Simplification of returns and forms for individual U.S. taxpayers abroad can substantially decrease burden and avoid waste of IRS resources,” p. 155 in 2011 annual report to Congress (Taxpayer Advocate Service)

Recent IRS data asserts that only 11 percent of extraterritorial US citizens are compliant.  —  Toneguzzi

Between 2010 and 2011 the IRS more than tripled agents for “international operations,” from 259 to 856, with plans to hire 300 more.  —  Knowlton

For 1990 a total of 180,087 IRS Form 2555 were filed from abroad, with 17,191 coming from Canada.
—  p. 18-19 in US GAO

A London-based consultancy for the investment banking industry has estimated that FATCA compliance costs may be between US$150 million to $200 million for every medium sized bank.  —  Elias

Peter van Dijk of Toronto Dominion Bank estimated that complying with FATCA would cost $100 million in an April 2011 letter to IRS and U.S. Treasury officials.  —  Zajac

The crackdown following the 2009 UBS Swiss banking scandal has so far [Dec 2011] resulted in 36 convictions and 4 pending trials, with many more cases expected.  —  Saunders

Under 2009 OVDP and 2011 OVDI, 33,000 disclosures have resulted in collections of $4.4 billion as of January 2012.  —  IRS Renews

For a tax return, the IRS estimates an average time burden of 22 hours for record keeping, tax planning and form completion.  —  Dobby

$15,000 is a 2011 “base estimate” of legal and accounting costs only (penalties not included) to comply with the eight years of back filing required under OVDI.  —  Golombek

Accountant Terry Dyer estimates that to achieve compliance, professional fees alone could reach $20,000 to $30,000.  —  Wilson

A February 2012 telephone inquiry about the status of delinquent FBAR reporting elicited this information: current processing is at July 2011 and the processing backlog runs into the millions.  —  Hodgen

[ Last update 10 May 2012 ]

Written by usxcanada

1 January 2012 at 12:00 pm

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