We are very pleased to share that David Altro and Avi Guttman were asked to prepare a special for The Globe and Mail, which was published on December 11, 2019. Their article titled “U.S. tax-filing requirements that Americans living in Canada should know” provides insight into the filings which are in addition to the 1040s. The article reviews foreign bank account reporting (FBAR) laws, the foreign account tax compliance act (FATCA), passive foreign investment company (PFIC), and other reporting requirements.
To read the article you can see it in part below, or click here to view it on The Globe and Mail’s website.
Globe & Mail – U.S. tax-filing requirements that Americans living in Canada should know
David Altro and Avi Guttman
The Globe and Mail
December 10, 2019
Canadian tax authorities shared nearly a million bank records with their U.S. counterparts this fall, making it more important than ever that Americans and dual citizens living in Canada be aware of their tax obligations south of the border.
The Canada Revenue Agency (CRA) has sent the financial records of 900,000 dual citizens and Canadian residents to the U.S. Internal Revenue Service (IRS) for the 2018 year, according a recent news story. It noted that the number of financial records of Canadian residents being shared with the IRS has risen steadily since an information sharing agreement began – from 150,000 in 2014 to 300,000 in 2015 and 600,000 for the 2016 tax year.
These financial records were shared with the IRS under a controversial U.S. law known as the Foreign Account Tax Compliance Act, or FATCA. Long before FATCA, all U.S. citizens and green-card holders living in Canada – and anywhere in the world – were required to report their non-U.S. financial assets to the IRS, under the Foreign Bank Account Reporting laws – or FBAR. […]