Update
These seminars will include discussion and analysis of the IRS “relaxed opportunities” for people to come into compliance.
Solving US Citizenship Problems Information Sessions
- Monday,June 23,Halifax NS,B3H 4P9 6-8pm,6135 University Ave,Rm 1102, Marian McCain Arts & Social Sciences Building,Main Campus across from Arts Centre MAP
- Thursday,June 26,Fredericton NB,E3A 3T8,6-8pm, 10 MacKay Drive,UNB, Marshall d’Avary Hall, Rm 322, MAP
- Tuesday,August 12,Dublin, Ireland,6-8pm,Venue TBA
U.S. Citizenship and Young Adults: Navigating The Special Rules Imposed On U.S. Citizens Abroad
- Wednesday,June 25,Moncton NB,6-8pm,Venue TBA
On February 5, Canada signed an Intergovernmental Agreement with the United States concerning the Foreign Account Tax Compliance Act. This agreement was included in Omnibus Bill C-31 Section 5; the Standing Committee on Finance has reviewed it and defeated all amendments submitted by the NDP, Greens & Liberals. This will enable the US to receive enhanced financial information concerning those deemed “US Persons” which includes citizens, green card holders, and “Accidental Americans” and will affect the families of anyone considered as such by the US. Starting July 1, 2014, Canadian financial institutions will begin to determine what accounts are “reportable accounts.” Information regarding those accounts will be passed on to the CRA who will, in turn, pass this information on to the IRS. Minister Flaherty had emphasized that the CRA will not collect taxes for any person who was a Canadian citizen at the time the tax was incurred, nor will any penalties be collected concerning FBAR (Foreign Bank Account Report). This situation is causing confusion and concern for anyone who may have a US connection, whether it be actual citizenship, a member of the family, etc.
The United States has also signed IGA’s (Intergovernmental Agreements) in many European countries including Ireland, the UK, France, Germany, Switzerland and many others. These IGA’s will allow governments to implement FATCA (Foreign Account Tax Compliance Act). Financial institutions across the globe will be required to identify accounts of “US Persons.” Starting July 1, 2014, financial institutions will begin to determine what accounts are “reportable accounts.” Information regarding those accounts will be passed on to the tax agencies of each country, who will in turn, pass this information on to the IRS.
These information sessions will focus on these issues which include:
Citizenship Issues:
-Are you a US citizen?
-Are you STILL a US citizen?
-Are your children US citizens?
-What is an Accidental American?
Tax Issues:
-Filing US tax returns
-What is involved?
-Filing information returns (FBAR, 8938, 3520A & 3520, 5471, etc)
-Reasonable cause (avoiding penalties)
Financial Planning Issues:
-Treatment of tax-deferred savings plans
-Treatment of Mutual Funds (PFICs)
Privacy Issues:
-What might FATCA mean for me?
Border Issues:
-Will FATCA make it harder for me to cross the border?
Does it make sense to give up US citizenship?
-Relinquishment
-Renouncing
Presenter: John Richardson, L.L.B., J.D CitizenshipSolutions.ca
John Richardson is a Toronto lawyer and a member of the Ontario Bar. He is also a member of the American Citizens Abroad (ACA) Professional Tax Advisory Council (PTAC).
When:see above
Where: See above
Admission: $20 CDN / €15 cash payable at the door (to cover costs).
Information presented is NOT intended or offered as legal or accounting advice specific to your situation.
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U.S. Citizenship and Young Adults: Navigating The Special Rules Imposed On U.S. Citizens Abroad – MONCTON NB
“Life planning, career planning and the reality of U.S. citizenship for Americans abroad”
“Everything I wish I had known, but couldn’t even have imagined to ask!”
During the winter, John Richardson presented a number of seminars for those concerned with the obvious problems of U.S. citizenship (including the “threshold question” of whether you really are a U.S. citizen).
Seminar topics have invariably included the problems of: FBAR, FATCA, investing, retirement planning, mutual funds, U.S. tax compliance, renunciation, etc. The official “FATCA Launch” of July 1, 2014 will surely make the existing problems worse.
U.S. citizens living outside the United States are subject to a regime of rules that diminish their “life opportunities”. These rules are such that U.S. citizens abroad live at a disadvantage relative to the citizens of any other nation. Those attending previous seminars have been primarily “middle aged” people, who have attempted to plan for their retirement, only to find that their retirement plans are threatened, because of their birth in the United States.
A shared sentiment has been:
“If only, I had known about these rules earlier … This is information that my children and other young adults need to hear! What does all this mean for my children?”
The seminar on June 25 will be a session specifically designed for your children and young adults. They will be exposed to (at least “some”) of that information that they need to hear!
U.S. citizenship can be seen as an opportunity. It can also be seen as a liability. U.S. citizenship will impact virtually EVERY aspect of your life! When it comes to the problems of U.S. citizenship abroad,”An ounce of prevention is worth a pound of cure.”
For those who DON’T understand the “rules imposed on U.S. citizens abroad”, U.S. citizenship can become a very big problem. In fact the older you get, the bigger the problems become. For those who have not been compliant with the “Rules of U.S. Citizenship Abroad”, the aging process is one of accumulating tax and penalty liabilities.
For those who DO understand the “rules of U.S. citizenship abroad”, it is possible to life a successful life. It’s just that it will require specific and specialized planning.
An awareness of the “rules of U.S. citizenship abroad” will equip you with the knowledge you need to:
• Live your life in compliance with U.S. rules; OR
• Decide that the “rules of U.S. citizenship abroad” are simply not worth the trouble.
Read this letter of a Canadian businessman to his dual U.S./Canada citizen son on the occasion of his high school graduation.”
Who: John Richardson, L.L.B., J.D – CitizenshipSolutions.ca
When: Wednesday June 25, 2014 – 6:00 – 8:00 pm
Where: TBA
Admission: $20 individual or $40 for a family of up to four people
Hope to see you and your families on June 25. Spread the word!
I just want to thank John Richardson and Isaac Brock society for putting on the relinquishing seminar and the support and encouragement they offered .
I received my certificate of loss of nationality of the United States today
Jane
Another proud ex-American. Congratulations Jane!
@ Jane
Now there’s some good news on a somewhat downer day. Congratulations! I hope you’ll stick around even though you’ve got your ticket to fly away from the tyranny of the IRS.
Big congratulations, Jane! Thanks for letting us know there is another in receipt of that valuable piece of paper.
Thanks for having these sessions. I was hoping they would make it to the east coast. I plan to attend in Halifax. I am also encouraging my daughter to attend the session in Moncton. I posted the following yesterday on the Campobello Island Bulletin Board, but got no real response there. I am not sure if everyone there is in denial, is scared to have their name publicly associated to anything FATCA, figure I am an IRS operative fishing for info or if they know something I don’t know. I do hope some of them will take advantage of this great opportunity. Here is what I posted there:
Dear residents of Campobello;
I am not sure how many of you are aware of this, but FATCA will become law on July 1st, 2014. If you have any connection to the US (born there, spouse from there, green card, snow bird, etc), this could have dire consequences for you. If you are not tax compliant in the US (it doesn’t matter if you have never lived, worked or voted there) or have never filed FBAR’s (claiming all your accounts with over $10,000 that are not in the US) you may be subject to draconian penalties worth far more than all your worldly possessions. Uncle Sam is broke and there are political consequences to taxing Americans – it is much less hazardous politically to steal the life savings of Canadians.
I grew up on Campobello (born in Lubec). I have been fighting behind the scenes (along with members of the “Isaac Brock Society” and “Maple Sandbox”) to try to prevent Canada from implementing the IGA they signed in February. In what can only be described as extortion, the US has forced Canada into this under threat of dire economic sanctions (Canada gets nothing in return except to maintain the status quo). Despite the Harper governments public anti-bullying campaigns, they have not led by example and have given the bully their “lunch money” (that being anyone with US taint).
I do not want to sound alarmist – I do not expect the world to end on July 1st. I am not sure exactly what will happen, but I don’t expect things will be better. I do know that the Canadian government has sacrificed Canadian sovereignty on Canada Day, and once you give in to an extortionist, they have a tendency to keep coming back.
The reasons I am posting this is not to try to unnecessarily alarm people. I think we all should try to be prepared for what is coming on July 1st, to take steps to protect ourselves. I have waited a long time for an info session to come to the east coast, and today it was posted at http://maplesandbox.ca/ that there will be sessions in Fredericton (June 26th, 6-8 pm) and Halifax (June 23rd, 6-8 pm). There is also a session for young adults in Moncton (June 25th, 6-8 pm). If you have any US taint, it is probably worthwhile to attend one of these sessions (cost is $20 to offset expenses). The presenter is John Richardson, a lawyer who is very well-versed in these issues. See the website for details.
If you are not pleased with what the Canadian government has done, let John Williamson know. I have contacted his office several times, but I am not a constituent of his. Get educated about this, don’t accept the old, “Trust me, I’m from the government” line.
This fight is far from over. Lawsuits are pending in Canada and the US. A group I have been supporting, The Alliance for the Defence of Canadian Sovereignty (ACDS), is attempting to mount a Charter challenge against the IGA as it discriminates based on national origin (amongst other breaches). Basically, if you have any connection to the US, on July 1st you will become a second class citizen in Canada – you will not have the same rights and protections guaranteed to other Canadians. If anything stated here is of interest to you, I would recommend you check out the 18 minute video compiled by ACDS (see the top post at http://isaacbrocksociety.ca/). The ACDS (http://www.adcs-adsc.ca/) is also raising money to mount this legal challenge.
I do not dare use my real name for obvious reasons (it is probably not too hard to figure out who I am). The Canadian government not only won’t protect you, they are doing all they can to assist the IRS in this extraterritorial overreach. You will have to protect yourself from both governments and I believe these info sessions will be very beneficial in that regard.
Please spread the word to neighbouring communities affected by this.
@Canadian Cop, I think I understand the problem……………..
You get it, I get it, Brockers get it…………………….
I would dare say 90% of “US Indica Perons” do not have a clue as to what is going to hit them.
Over “here” many of the long term expats and “accidentals” I run into, when I tell them they lay of the land, I get a glazed zombie look.
The other 4% are in denial.
The next 4% are scared to talk or take action.
The remaining 2% are what do we do.
I think the wake up call will be in two years when at least hundreds of thousands get the “friendly courtesy letter” from uncle sam.
There are millions that are non-compliant who have been proudly wearing indica on their arms and they have their heads in the sand like an ostrich.
In two years it is going to hit the fan……………….seriously, picture all these people going to their mail box, seeing the envelope and then wondering “How did they find me?”
@George
Unfortunately, I think you have hit the nail on the head (as usual). I guess we can only sound the alarm and do our part. It does tend to get discouraging though.
@CanadianCop
Thanks for taking the initiative on getting others in the are aware of the meetings. Could you kindly contact me at us.expatcanada at gmail dot com? thanks
Get that prized CLN if you can!
@ Jane,
Congratulations on receiving your CLN! 🙂
Would you let us know what month your consulate meeting was and at which consulate, so we can add it to the CLN timeline chart in the Consulate Report Directory? Thanks.
I’m surprised and pleased to see this session coming to New Brunswick! I’ve tried to find out everything I could on this site and others, but I still wonder what steps to take. My spouse and I are Canadian citizens with extended family in the U.S. that we need to see at weddings, funerals, reunions, etc. At the same time, the yearly I.R.S. paperwork required for U.S. persons is so daunting and the penalties so egregious, we wonder how can we protect ourselves and our kids?
@Jan,
The trick is to be sure you understand the rules about citizenship as they are not as cut-and-dried as they may appear. Presuming you are a USC, did you register your kids with the consulate? If you are not tax-compliant, generally, it is a good idea to make sure you have a clear understanding of your options BEFORE you go to any cross-border professional.
You might want to take a look at these notes as they are a synopsis of what is dealt with at the meetings that are aimed primarily at adults.
A great read for any parent with a dual US/CDN child:
http://renounceuscitizenship.wordpress.com/2012/08/21/letter-of-a-canadian-businessman-to-his-dual-u-s-canada-citizen-son-on-the-occasion-of-his-high-school-graduation/
Excerpt:
“Liabilities of U.S. citizenship – Burdens of U.S. citizenship:
You have the obligations to:
– register for the military service (“the draft”);
– pay taxes to the U.S. and pay those taxes under the same rules that apply to U.S. residents;
– file U.S. tax returns every year regardless of where you live;
– file numerous “information returns” which may include the private and financial information of others.
– pay estate and gift taxes
Now, you may ask “so what?” Let me try to explain to you why this might matter in your life. But, once again, these are just some thoughts. I leave it to you to decide whether these are considerations that are significant to you.”