OTTAWA ON – Thursday, June 2 2016
Informal Meeting available 6:30 – 8:30 pm; Details TBA
We would like to hold a meeting in Ottawa next week. Please email if you are interested, no later than Tuesday, 5 pm EDT.
nobledreamer16 at gmail dot com
When: Thursday,June 2, 2016 6:30 – 8:30 pm
Where: TBA
Admission: $20 payable in cash at the door
Who: John Richardson, B.A., LL.B., J.D. (Of the bars of Ontario, New York and Massachusetts), Toronto citizenship lawyer and Co-chair of the Alliance for the Defence of Canadian Sovereignty and the Alliance for the Defeat of Citizenship Taxation. citizenshipsolutions.ca
Information presented is NOT intended or offered as legal or accounting advice specific to your situation.
Why am I getting letters from my bank all of a sudden?
The “FATCA Hunt” – the hunt for U.S. persons (whatever that is) began on July 1, 2014 which was “Canada Day”. Although both the definition of “U.S. person” and whether one meets the definition is not always clear, the search has begun. The level of FATCA awareness has begun. Some organizations are actively warning people that “U.S. Personness” matters. The purpose of the warning is presumably to encourage people to ”come clean” and deal with their U.S. tax situations. In some cases, there is no particular warning – just a letter indicating that they are suspected to be a “U.S. person”. Often one must prove to the institution sending the letter that one is not a U.S. person.
What individuals are U.S. taxpayers? Who is a U.S. citizen?
There are individuals that the U.S. government would define as “U.S. citizens” who:
- do NOT agree that they are U.S. citizens because they have performed a “relinquishing act” under applicable U.S. laws;
- do NOT even know that they may be U.S. citizens because they have never lived in the United States
- are citizens and residents of countries that do NOT allow multiple citizenships
To put it another way: one’s status as a U.S. citizen is NOT always clear.
I have never heard of these requirements! What determines the income that must be reported to the IRS? What “Information Returns” are required to be reported to the IRS?
- FBAR (Now called FinCen 114)
- FATCA 8938 – Report of Specified Foreign Assets
- 5471 – Information return for Foreign Corporation
- 3520 – Information return for a “Foreign Trust”
- 3520A – related to the 3520
- 8621 – for mutual funds
- 8965 – for exemption regarding ACA (“Obamacare”)
I am only a snowbird! Why does this affect me?
- Substantial Presence Test
- Form 8840 Closer Connection Exception Statement for Aliens
- Caution: Streamlined Programs & 35 day rule – Catch 22
What are the ways I can become compliant?
- Offshore Voluntary Disclosure Program – AKA “OVDP – Not appropriate for the vast majority of people
- Streamlined Compliance – A pre-packaged way to “clean up” past compliance problems
- Obeying the law – filing amended tax returns outside the “IRS Created” programs
- Delinquent FBAR Submission Procedures
What costs are involved in renouncing U.S. citizenship?
- The costs of a total of 6 years (5 years prior the year of renuncation plus the year of renunciation) of tax compliance and information returns
- The cost of any back taxes and penalties
- A $2350 administrative fee
- Possibility of having to pay an “Exit Tax” (which can be the biggest problem)
I am waiting for the day when we Canadians of Canadian/American decent who own businesses and pay both our personal and corporate provincial and national taxes for the services we get, stand in front of the house and parliament protesting the way our Canadian government has, and is, treating us a citizens of Canada, and how they betrayed our sovereignty, how they compromised our privacy, and how they subordinated their citizenry to a foreign government.
I’m waiting for the day when the media finally takes hold of this FACTA crap and start covering these issues not unlike what it did over the Duffy stuff.
I’m waiting for the day when we, if we have to, stand at a significant border crossing hoping other Canadian citizens and our American citizen friends realize how stupid our governments can be thinking that the US has the right to tax us expats when we get nothing in return, when we have no representation, and when we Canadian/American types prefer to pledge our allegiance to Canada, and only Canada.
When that day comes, I’ll come out and I’ll be there. Who says we have to be nice?
I’m waiting for the day that there are enough of us to effect the important things you suggest, Dave. Until we have a critical mass of those willing to come forward, we are pretty impotent. Of course, the chance of obtaining any critical mass with the threats that hang over ourselves and our families seems dim. In Canada, our best shot at any change is the Canadian litigation we have been donating for and wait to see go forward. Does it appear to you that the media is gagged, i.e. what we see in the news is distraction from the important issues, like our country’s sovereignty and protection of ALL Canadians as in *A Canadian is a Canadian is a Canadian and ALL Canadians should be protected by the Charter of Rights and Freedoms, not exclusion of those deemed by the US to be US Citizens or Persons, discrimination by national origin or the national origin of our parents.
Why does no one ask what for me, an accidental American, is the most pressing question?: what are the real or potential consequences of non compliance? I have no US work history or holdings (left with my Canadian parents at age four).
D Michael For the vast majority the consequences are inconsequential.. The IRS has been gutted by the GOP and hasn’t the resources to go after people like us.
@DMichael. It sounds as if the only US connection to your otherwise 100% Canadian life is a US birthplace. If that is the case, just make sure you don’t accidentally reveal that information when opening a bank account, brokerage account, or whatever. Use I.D. that doesn’t show a birthplace. If directly asked if you are a US citizen, well, you know what the correct answer should be. If you are unsure what the institutions holding your existing accounts already have on file for you, nowadays you can check your customer profile online from your home computer.
The Duke is right; your exposure is extremely minimal, particularly if you don’t have a US Social Security Number. Without that SSN you don’t exist as far as the IRS is concerned.
@MAZ57 and Duke
Alas a quarter century ago I naively followed the advice of US border folks who told me after scores of crossings on my cdn psssport that I legally must use a US passport to enter the US. So I now have a US passport, which came unsolicited with a SSN. So far it seems the state dept, border, customs, immigration etc don’t talk with the IRS on a regular basis, but who knows? … hence my uncertainty. Thanks for your thoughts.
There are 10 million ex pats. Only a small minority pay any attention to this BS. There are 10 million undocumented aliens in the US. They have their hands full.