Alert!
Important Changing Tax Rules for American Citizens and
US Green Card Holders Living in Canada
- Are you an American citizen living in Canada?
- Were you born in the United States?
- Are your parents American citizens?
- Do you hold a Green Card to work in the Unites States and you have not officially renounced your Green Card status?
If you answer yes to any of the above questions, you may be subject to the changes in American tax law. The US is targeting “tax dodgers” – those Americans who have not filed taxes in the United States and especially those people who are tucking money into overseas or “offshore” accounts.
Usually when people envision such behaviour they are thinking of bank accounts in Switzerland, the Bahamas or the Cayman Islands. However, the regulations are not that narrow – Canada counts! Bank accounts in Canada are foreign bank accounts and may be caught in the pursuit of those unpaid tax dollars on monies in foreign accounts. The American Internal Revenue Service (IRS) has found the means to extend US tax regulations to foreign financial institutions.
The IRS has a short-term Voluntary Disclosure Program designed to allow Americans (or US Green Card Holders) with foreign bank accounts the opportunity to greatly reduce their exposure to potentially serious civil penalties and potential criminal prosecution by, as the name suggests, voluntarily disclosing the nature and amount of their overseas resources. However, this Program is only available until September 23, 2009 at which time the IRS has indicated its intention of pursuing these individuals vigorously.
If you answered yes at the beginning of this short article and have concerns about how these tax laws may impact you, contact a tax professional as soon as possible.
We at Weilers have over 60 years of experience helping individuals protect their assets and their businesses.
If you have any questions about Immigration to Canada or would like to discuss further the new changes for American citizens and US Green Card holders living in Canada, please feel free to contact Fhara Pottinger at (807) 625-8877
