I found a rather interesting website of a now deceased Vancouver tax lawyer/preparer who at one time dealt with US Canada tax issues. The site has a series of newsletters and question and answers going back to 1993 (This is was in the “day” when there was an IRS attache located at the US embassy in Ottawa who dealt specifically with Canada). I would not necessarily bet my life on information from a dead person that is 15 years old but going through his newsletters (I am still going through starting in October of 1993); he appears to at least have some answers from the then IRS attache in Ottawa that “may” in fact explain some of the situations people find themselves in. The real funny thing is at least as of 1993 the IRS could administratively require anyone living outside the US who hadn’t filed to file returns going back to 1967.(I guess there was a big tax law change back in that year. This was definately before my time maybe Roger would know).
Here is his first newsletter from October 1993 that deals with the filing requirements.
This is the newsletter I am studying right now from March 1994 that talks about dual nationality and loss of citizenship issues.