We continue to have numerous inquiries about the US tax liabilities of RDSP beneficiaries and holders. We posted on this question back in August. Our advice remains substantially the same – consult a cross border tax specialist. We would add, do so with some caution as we have heard stories of people racking up huge expenses trying to deal with this issue.
The amount of money that a person has in a bank account is irrelevant to determining tax liability. In order to assess income taxes, the IRS needs only an accounting of the interest, dividends or capital gains that a person has earned as income. Therefore, the filing requirements of FBAR, FATCA and 8938 are unrelated to the need to assess a person’s tax liability. The information, Continue reading
This is from the Canadian Banker’s Association, a flyer to be handed out to customers. All Canadians: this affects you too.
The title says it all. It is time to get organized. The Canadian Bankers Association has joined with the IRS in what is nothing less than a declaration of war!
Please help! Is this the basis of the FBAR law? The Secretary of the Treasury shall require reports? Please read and comment (USC 31, IV, 53, ii, § 5314):
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I think one of the important issues surrounding this whole compliance issue is the need for us to become organized and speak with one voice. It pains me to see people going through anxiety and fear as they desperately file their back returns and FBARs, spending thousands of dollars, with no direction from either Government, lets “sit tight and wait”. Just a bunch of empty words and no direction!
A contradiction exists in United States law. On the one hand, the IRS requires former citizens to follow an exit procedure and the State Department requires a $450 fee. On the other hand, earlier law establishes and protects expatriation as a fundamental right.
See also:
Freedom of Emmigration in East-West Trade, USC 19 § 2432 (expatriation is a fundamental right)
Is the taxation of US persons abroad constitutional?
The stalker: divorce from the United States is a messy process
Civil Disobedience, FBAR and Forms 8854 and 8938
The right of expatriation II: The Ninth Amendment
The right of expatriation
Congress is having a hard time balancing the budget and every little bit helps. Peter W. Dunn has learned about a proposal that could seriously reduce the US federal budget deficit.
The IRS is using a fraudulent accounting practice, in the spirit of Enron and Bernie Madoff, to expose US persons to increased FBAR fines.
