Don’t panic, American citizens in Canada: The IRS is not coming to seize your house

Financial Post ^ | March 6, 2015 | Max Reed

[rickmichaels]

One million American citizens in Canada face double tax troubles. Max Reed explores these challenges in a spring series.

This spring, a new tax law hangs heavy over U.S. citizens who call Canada home.

The U.S. Foreign Account Tax Compliance Act, or FATCA, has generated a lot of attention because, as of July 1, 2014, it requires Canadian financial institutions to send information about their U.S. account holders to the Canada Revenue Agency, who will hand the info off to the Internal Revenue Service.

It’s all part of an IRS crackdown on foreign tax evaders that began in 2011. FATCA, understandably, frightens people.

Americans in Canada (U.S. citizens, certain U.S. green card holders, those who have a U.S. address) have always been expected to file, but FATCA makes these tax obligations more pressing.

[erkelly]

I’m confused. How can the US pass legislation requiring the Canadian govt to do anything? Or is this just bad writing? I suppose I should have broken the time-honored tradition of replying to a post without reading the article.

[Timber Rattler]

The comments are really calling out the author for his dishonesty in this piece.

[Timber Rattler]

Congress didn't, but the Obama Regime in fact did press Harper and the Canadian Parliament to pass it's own onerous law targeting American citizens, even those who were born to American citizens, but have never stepped foot inside the U.S.

At the time, Obama was trying to wring every last dollar out of ex-patriates abroad to help pay for Obamacare, and so they played hard ball with the Canadians and Swiss.

[Jonty30]

Would I be too cynical if I just said, “yet”?

[Cementjungle]

They started this in Costa Rica a couple years ago... really ticked off a lot of ex-pats down there.

[OneWingedShark]

No, not at all.

[Mears]

“I suppose I should have broken the time-honored tradition of replying to a post without reading the article.”

—

Oh for heaven’s sake don’t do that or FR would be a shell of it’s former self. :-)

.

[sten]

why do taxes matter??

seriously, ask yourself the question.

why do they insist on taxing us when they print whatever money they need while spending what they will never have

so why do they need ours???

[unread]

How true is this. Scary
At first I thought this was funny….Then I realised the awful truth of it.

Tax his land,
Tax his bed,
Tax the table
At which he’s fed.

Tax his work,
Tax his pay,
He works for peanuts
Anyway!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won’t be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He’s good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he’s laid.

When he’s gone,
Do not relax,
It?s time to apply
The inheritance tax.

Accounts Receivable Tax
Airline surcharge tax
Airline Fuel Tax
Airport Maintenance Tax
Building Permit Tax
Cigarette Tax
Corporate Income Tax
Goods and Services Tax (GST)
Death Tax
Driving Permit Tax
Environmental Tax (Fee)
Excise Taxes
Income Tax
Fishing License Tax
Food License Tax
Petrol Tax (too much per litre)
Gross Receipts Tax
Health Tax
Inheritance Tax
Interest Tax
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Mortgage Tax
Personal Income Tax
Property Tax
Poverty Tax
Prescription Drug Tax
Real Estate Tax
Recreational Vehicle Tax
Retail Sales Tax
Service Charge Tax
School Tax
Telephone Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Water Tax
Workers Compensation Tax

And Now they want a Carbon Tax !

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago, & our nation was one of the
most prosperous in the world.. We had absolutely no national debt, had a
large middle class, and Mom stayed home to raise the kids.

[Gay State Conservative]

Unlike many members of my generation I had substantial confidence in the basic integrity of government officials when I was young.But now that it's plain that those who *didn't* share my confidence back then are now government officials *themselves* (or the parents of those officials) I find my level of confidence has dropped to zero.

I'm becoming more and more glad that I qualify for citizenship in another country.As time passes the thought of renouncing my US citizenship becomes more and more appealing.

[Alberta's Child]

The IRS and Revenue Canada are subject to reporting requirements under an agreement that actually has a lot of benefits for citizens of both countries working across the border. Basically, a U.S. citizen who works in Canada is obligated to file a U.S. tax return and pay U.S. taxes, but he/she gets credit for taxes already paid in Canada under the terms of this agreement.

It looks like the U.S. government is cracking down on U.S. citizens who live in Canada and haven't filed U.S. tax returns for some time.

[entropy12]

The dependent class has discovered that voting for leftists is a winner. The leftists can tax all those who have been successful and hand over the loot to the dependent class.

Robin Hood was very popular also.

[ChocChipCookie]

FATCA affects all banks worldwide, not just Canada. Simon Black has been writing about this for a couple of years.

[ViLaLuz]

If you like your house, you can keep your house.