My understanding is that the last date for filing Form 8854 for a 2011 expatriation is June 15, the due date, because of the automatic extension for the tax filing for a person resident outside the United States. After that date, a person could be subject to warnings or even a $10,000 non-filing fine. So be it.
Tim has suggested that there may be some high level decisions about this at a high level in the Canadian government, on this one, since it is a clear violation of Canadian citizenship rights to have to file Form 8854. I am after all no longer even an American citizen, and it hardly makes sense for me to have to file a form enumerating all my world-wide assets after having received my Form 8854. At Tim’s suggestion, I will not send the 2011 tax filing or the Form 8854 until the due date.
I have decided to send the information for my 2009 taxes that was requested and my 2010 filing separately. It will cost me two stamps. But here is my version of the Cloward-Piven strategy: (1) never file electronically; (2) never give more information than you absolutely must (so don’t attach any Canadian tax information unless necessary to establish a claim); (3) never put two or more tax returns in the same envelope. Make the IRS process the information. If you file electronically, a computer can do this for them, and then that data, with no effort on their part, can be search, collated and eventually used against you. Make it necessary that someone working for the Federal Government must at very least scan your information into a computer. Make them stand up and walk to the file cabinet where they have kept your previous returns (presuming there is no scanned version already in the computer), or at least take a few minutes to search in the computer for the information about your previous returns.
Never file FBAR electronically. Make someone in Washington at the treasury department signal your FBAR to the IRS if there is a problem. If they are receiving thousands of FBARs, they have to pay someone to scan the information into a computer. Don’t make their job easier for them.