It seems the IRS is cracking down on US citizens who live in Canada. I did not know that I was suppose to file tax returns to the US on my Canadian income. lol. They are now coming after us. The good news is that I probably don't owe any taxes, since I get credit for the Canadian taxes I've paid (at a much higher rate than the US), but I still must file  The bad news is for US citizens who have capital investments. They will be slammed with the taxes and maybe penalties, unless they can show they didn't know they had to file.

One man wrote a letter to Obama, essentially saying that it's illegal since he's been a Canadian citizen (maybe dual, I don't know) since 1986. He hasn't voted since then and considers it illegal. Taxation without representation. I know the argument will be that he could have voted, but choose not to vote. Maybe.

So, here I sit, wondering what damn forms I'll need, if I'll need it done professionally or since I don't earn tons of money or have capital investments, will I be able to file a short form?

Another thought. Can you imagine the confusion and mess at the IRS when up to one million Canadians file? They can't even keep up with the US filings.

I also wonder if I revoke my US citizenship when I get my Canadian, will I still be obligated to file? I can't find an answer to that other than a statement that says, "If one is born on US soil, one is a US citizen"  ummmmm, okay.

It's kind of funny sooz. Some people are only doing this year forward. Some are doing three years. Regardless, I won't owe anything unless they decide to penalize me for not filing. I don't think that's going to happen. There is only ONE place here giving legal advice on this matter. No one else is touching it, lol. The deadline for us is June 15th, so there's plenty of time.

The US and Canada have a tax treaty, wherein you can't be taxed on income that has already been taxed, so they are looking for those US citizens who've come here and made millions and/or bought and sold expensive properties. The oil fields is my first thought.

The sad part of this, if you aren't required to file if you revoke your US citizenship, is that so many will not opt for dual Citizenship. I won't now.
I think there are more diplomatic decisions coming on this.

What galls me the most is that there was a "amnesty" time period when anyone could file and be automatically exempt from penalties. That expired in December! They are just bringing this to the publics attention now.   I know I would have read about it previously had it been in the media.

I found this:

In most cases, Canadian dual citizens would owe little if any U.S. taxes because the U.S. excludes the first $92,000 of Canadian wages from taxation and offers foreign tax credits that could offset other income.


No worries for me, lmao.

And this:

A third program requires banks and other financial institutions in Canada to disclose the identities of U.S.  account holders to the IRS or risk having a portion of their income from U.S. investments withheld as soon as 2014.  (Damn blackmailers!)

Canadian Finance Minister Jim Flaherty called the U.S. reporting rules for banks and individuals burdensome and ineffective in combating tax evasion in a Sept. 16 statement.

And the head of the Canadian Bankers Association, Terry Campbell, complained that the country's 72 banks have no easy way of sifting through 20 million to 25 million accounts to find customers with a U.S. citizenship link.

Campbell said the reporting requirements are “an enormous, enormous compliance burdenâ€

Ok, so the one place dealing with this crap is having a Q&A seminar in February. I've registered, so we'll see............

The l-o-o-o-n-n-n-g arm of Uncle Sam - you can run but you can't hide!

Bwahahahahaha!

  Just wait until there is a rush to revoke US citizenship by all the dualies. They'll wish they had never gone down this road.

I will do just that when I get Citizenship. Didn't want to, but I'm not going to go through all the hassle just to show I don't have to pay.  What a waste of time, paper and their staffers. Can you imagine the flood of close to one million extra returns that must be handled separately? Hell the US can't get their own house in order in regards to tax returns. They once sent us a cheque and assessment for another person with the same last name, but in a different city.  When I called them, they didn't give a rat's ass, but I did return it to the IRS and found the other person with a search. I called them to let them know. ha!

  

Sure. Make her day. Canadian taxes are higher. But then again... we have healthCARE.

(Nothing personal Chaos, knowing your experience with the health insurance industry.)

As sooz said, talk to a lawyer. The penalties for not filing are pretty stiff. I know from experience with a non-profit who had over $9000 in penalites and interest for not filing returns on which there was zero tax owed.

In Kanuckistan, if you owe money and don't file - they'll get ya. If you don't owe money and don't file - they leave you alone. If they owe you money and you don't file, you can file for three years back and get all your money in one lump sum with no penalty.

The countries are working on an amnesty program. According to statistics only 11% of Americans file. lol They are going to have to make some sort of deal. As long as I can convince them that I didn't know (and I didn't!) then it's all good. I'm not worried at all.

The company offering the seminar also have lawyers, so I'll wait and see what they say.