In a new “Special to the Financial Post” advertorial that makes Barrie McKenna look like Woodward and Bernstein, über compliance condor Max Reed attempts to reassure “American citizens in Canada” that they have nothing to fear, except perhaps some red-herring nightmare of IRS goon squads swarming across the border to seize their homes. It is a tour de force of utter nonsense and, sadly, another disheartening example of what now passes for journalism in Canada. Here are a few tidbits, displaying all the comforting factuality of a PMO press release:
Don’t panic, American citizens in Canada: The IRS is not coming to seize your house
To get on the IRS’s good side, take advantage of the amnesty program called “Streamlined Foreign Offshore Procedures” (which you can find on the IRS site). It will help you catch up on overdue tax returns without fear of penalties.
U.S. citizens in Canada are only subject to U.S. federal tax. (The Canadian taxes you pay are credited against your U.S. taxes.)
Unless you have U.S. source income, you will not owe anything.
The deadline for filing a return in the U.S. is April 15, but can be extended to June 15 for those outside the U.S.
Intriguingly, this is just part one of a spring series of helpful articles for “One million American citizens in Canada.” It is difficult to imagine just how much more useful advice Max Reed can offer than he does in his first instalment.
Comments are wide open.
Over simplification! Although they can not collect in Canada, no jurisdictional authority! If one enters the US with unanswered requests,.. you may be in for a long stay.
Thank you Calgary411 for reminding us about Max Reed’s participation in the Canadian Standing Committee on Finance’s meetings prior to the passage of Canada’s FATCA IGA:
http://openparliament.ca/committees/finance/41-2/34/max-reed-2/only/ – Max Reed, also of Canadian IGA hearings before Parliament fame when he was practicing U.S. tax law at White&Case LLP, an international law firm based in New York City.
http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments/comment-page-126/#comment-5703115
FYI, SKL where Mr Reed now works, is where I’ve been doing my taxes since this nightmare began. I sent the article over to its founder and our accountant suggesting they read the comments.
@Bubblebustin: Thank you for bustin’ Mr Reed’s bubble. Such misleading information needs to be called out and shown for what it is. It makes one wonder whether the publication is a deliberate attempt to entrap desperate people hoping that the information is in fact so. Such publication should shame any reputable professional organization. Is he a member of the Canadian Bar Association ? or a US Bar Association ? or any similar organization / regulatory agency ?
“One million American citizens in Canada”
Horse feathers!!!!
Its One Million Canadian Citizens in Canada!!!
Calling a Canadian Citizen in Canada anything and I mean anything other than Canadian is downright offensive and racist. They need to be called on the carpet for this and evertime they make a comment like that they need to be called a racist.
Oh look! another attempt at a smear article to try to cloud people’s judgement. This is becoming very typical in the fight for our sovereignty and protection from a foreign country’s attack. The author was likely asked to dumb it down and make it look attractive like it is no big deal. Can’t say that I blame them as this is the only way they can sell this crap to Canadians. It is our job to right these misinformation articles and tell it like it is. Paid actors like Mr. Reed will be exposed for who they are and who is supporting them.This is no game, this is real and the clear reason we are ALL supporting this fight with the government representatives in Canada who clearly committed treason.
@Deckard, I just sent a short letter to the Editor of the FP focusing just on one inaccurate statement (“Unless you have U.S. source income, you will not owe anything”) and asked that the statement be retracted with apology. I suspect that FP will go back to Reed for clarification and will be forced to make a retraction.
Others (from any country) may wish to send in comments with the hope that your letter might be published in the FP/NP print edition for maximum exposure. The letters need to be very short and you will be asked for your name etc.
See:
http://www.nationalpost.com/contact/letters/index.html?name=Letters
I just noticed that the inaccurate Max Reed article was also published in the print version of today’s (Saturday March 7) Financial Post section of the National Post. The first page of the FP directs “U.S citizens living in Canada” to the (lead) article. This means that even more people will be exposed to the misleading messages.
If you are not afraid of disclosing your name send a brief letter to the FP. It would be helpful to have some letters sent from those who live outside of Canada.
http://www.nationalpost.com/contact/letters/index.html?name=Letters
Thank you for making a post of this, Deckard. And thank you for this comment and suggestion, Stephen. I have just successfully submitted what I tried to yesterday (Clue: SLIDE TO COMPLETE instruction means “slide the arrow all the way to the right to submit” which I apparently did wrong yesterday.)
I am so angry that ANY Canadian will read this and believe that *US-defined US Persons in Canada* / *Americans in Canada* are worrying needlessly as we try to get correct information to the people who need it. As we are told by anyone that we ask questions that we should consult with a US tax professional, that this misinformation affects the decision of even one such person is tragic. The Financial Post / National Post should be in no position to offer tax advice to vulnerable *US-defined US Persons* when the consequences of US citizenship-based taxation are so severe and costly.
To me, this echos the words of former US Ambassador to Canada, David Jacobson, http://canada.usembassy.gov/ambassador/news-and-speeches/18-october-2011-ambassador-jacobsons-remarks-to-the-canadian-club.html
Other US tax information from Max Reed at http://www.skltax.com/blog/ I have not read any of this yet.
Doing a search of the title of the Financial Post / National Post article will show some of the other places where Max Reed’s article “Don’t panic, American citizens in Canada: The IRS is not coming to seize your house” is already picked up / republished to confuse and misinform even more people.
letter sent to the editor of the FP
i was having a great day till i read the article and realized just how many things were wrong with it……i feel bad for the people who read it and assume all is well…..
I’m sorry but this journalist’s article smacks a bit like when the Jews were walking into the ‘work camps’ reading ‘Arbeit Macht Frei.’
Max Reed needs to be educated.
If nobody owes ‘taxes’ why on earth does the IRS need resident Canadian citizens financial data?
Max also fails to mention today’s FATCA won’t be tomorrow’s FATCA because the US can change the rules at a drop of a hat.
His argument is naive at best.
Perhaps the Financial Post would allow a rebuttal article from a spokesperson from IBS?
This is yet another self-serving infomercial from a blood-sucking US tax-compliance leech trying to drum up more business for his firm. This so-called article should have been placed back in the classifieds section along with the condom ads where it rightfully belongs.
I used to read the Financial Post but now that they allow crap like this to see the light of day they have totally shredded their credibility. I won’t bother going back.
The IRS may not for the moment seize your house but for certain people, the IRS wants 23.8% of the net proceeds of the sale of your home.
Dear Financial Post,
You want to sell a few more newspapers? “One Million Canadian Citizens Exposed to I.R.S. Confiscations” would sell a few! Seeing a headline about Americans makes many Canadians just turn the page. I would have thought you’d have figured that out by now!
(If anyone out there agrees with me feel free to post the above in the comment section to Max Reed’s article.)
A reasonable journalist would be able to piece together the comments to this article to formulate an accurate article — of course, first, checking the facts with one of those US professionals the IRS Help people tell us to consult for tax advice as our questions are too complex for them.
The Financial Post article doesn’t even have a courtesy disclaimer to its readers, as is always given by US tax lawyers such as Phil Hodgen:
Done!
I also left the following comment:
http://www.nationalpost.com/contact/letters/index.html?name=Letters
Just sent my letter to the editor.
FWIW, Max is a Canadian.
Yes, Tricia, I seem to recall that. He has Gerald Keddy-itis, in that there’s the notion that this doesn’t impact Canadians.
Thanks, Trish. That fact mixes things up and may inadvertently give more credence to using professionals who are actually US. Somehow we must get out of this byzantine US citizenship-based taxation nightmare we are experiencing in Canada and around the world.
@Bubblebustin:
“GeraldKeddy-itis”
Just MADE my day!!
Unfortunately, they ALL have “GeraldKeddy-itis” and the Financial Post and National Post do not even realize it.
@calgary411
Don’t worry, I’m sure the compliance condors agree that there are plenty of billings to go around, no matter which side of the border they’re perched on. And, honestly, are any of them innately more or less qualified because of their own nationality? Careful, or we might have to witness the spectacle of condors claiming national origin discrimination, lol.
@FuriousAC
I guess that’s a new one for the Brock glossary! As well as “Brockbuster” from Kermitzii, which I assume are Brock myth busters?
http://isaacbrocksociety.ca/?s=Glossary