We continue to have numerous inquiries about the US tax liabilities of RDSP beneficiaries and holders. We posted on this question back in August. Our advice remains substantially the same – consult a cross border tax specialist. We would add, do so with some caution as we have heard stories of people racking up huge expenses trying to deal with this issue.
The amount of money that a person has in a bank account is irrelevant to determining tax liability. In order to assess income taxes, the IRS needs only an accounting of the interest, dividends or capital gains that a person has earned as income. Therefore, the filing requirements of FBAR, FATCA and 8938 are unrelated to the need to assess a person’s tax liability. The information, Continue reading