Monthly Archives: July 2012

EVERYONE is Eligible to Free File!
http://www.irs.gov/efile/article/0,,id=118986,00.html

Everyone?  Including Americans abroad?  Even those with foreign addresses, senior citizens, the working middle class or the wealthy?

if you are a U.S. citizen or resident alien, the rules for filing income… are generally the same whether you are living in the U.S. or abroad.
http://www.irs.gov/businesses/article/0,,id=180946,00.html

The rules for filing income are generally the same for those living abroad?  Really?  Seems hard to believe.  Let’s put it to the test.

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Here is the link to the CBC Radio (New Brunswick) of the interview with Profs. Russ Hunt and Marie Cashion:

CBC Radio:  Dual Citizens

They have asked for feedback:

infoam [at] fredericton [dot] cbc [dot] ca ; or talk back at 1-800-561-4222 (I don’t know if this number works outside of NB).

Those of you who are not on the USTAX [at] stu [dot] ca listsrv that Russ Hunt is operating will not have received the following message:

I’ve added some information to my US Tax Web site about the recent announcement from the IRS announcement that it intends “to help dual citizens residing in Canada deal with their US tax filing obligations” and to “offer assistance to those with Canadian retirement plans.”

I was prompted to do a bit of research and add it to the site by the news that the IRS initiative had been “welcomed” by Jim Flaherty, and by a request to do an interview with the local CBC Information Morning show. Marie Cashion and I will be on at 7:15 tomorrow morning. If you’ve up at that hour on a holiday weekend, congratulations; you can hear it on line at http://cbc.ca/nb ; if not, sometimes interviews are posted on the Web site. In any case, my expectation is that it will be much more useful to have a look at my site:

http://people.stu.ca/~hunt/ustaxinfo/

— Russ

Steven J. Mopsick, 30 year IRS vet, commented on the procedures announced by the IRS 26 June 2012:

NEW FILING PROCEDURE
FOR AMERICANS ABROAD: TOO LITTLE BUT NOT TOO LATE

On June 26, 2012, the IRS announced a new filing compliance procedure for non-resident U.S taxpayers. The procedure provides that current non-residents including dual citizens, who have not filed U.S. income tax and information returns, may file three years of delinquent tax returns and six years of delinquent FBAR’s without fear of IRS punishment.  Provided the delinquent returns are (a)“simple returns,” (b) the IRS determines that the taxpayer’s package presents a “low level of compliance risk” (c) and the returns show less than $1,500 of tax due for each year, the taxpayer can expect an expedited review process possibly resulting in no assertion of penalties or further follow up procedures.  The notice makes it clear that this new procedure is not a substitute for a voluntary disclosure nor the more formal OVDI 27.5% tribute program and that if a taxpayer has a well-founded  worry about the risk of criminal prosecution he better consult a lawyer.

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