Tax evaders: Accidental Americans.

[ZenOps]

http://www.cbc.ca/news/politics/fatc...anks-1.2524444

Are either of your parents US citizens? Well, you definitely are on the hook to pay US taxes now.

Having a Canadian citizenship does not supercede a parental US citizenship.

Dun dun duhhh.... The tax grab continues.

BTW: The smart ones in the US went "stateless" to not have this burden put upon their children. Its getting very late in the game to renounce your US citizenship if you wish to do so.

[Nitro5]

We need something like this. I remember that crisis in Lebanon a few years ago with people that haven't lived in Canada for 29 years wiping out their passport demanding that Canada saves them. I have no problem with airlifting these Canadians out, but they should be paying taxes to support the benefits of being Canadian all those years.

[CapnCrunch]

"or that the U.S. automatically confers citizenship on anyone with at least one U.S. parent"

What the hell? So your kids, and your kids kids, and their kids, and so on are all Americans forever?

[Xtrema]

Originally posted by CapnCrunch
"or that the U.S. automatically confers citizenship on anyone with at least one U.S. parent"

What the hell? So your kids, and your kids kids, and their kids, and so on are all Americans forever?

Only financially....

[rage2]

Originally posted by CapnCrunch
"or that the U.S. automatically confers citizenship on anyone with at least one U.S. parent"

What the hell? So your kids, and your kids kids, and their kids, and so on are all Americans forever?

It stops if you don't live in the US. Your kids wouldn't be American.

http://www.uscis.gov/us-citizenship/...hrough-parents

They're going after actual people that take advantage of US citizenship first, which means if you've lived there, or used a US passport, or worked there, etc.

Generally speaking, if you're just a T4 earner, it won't affect you as you won't be liable for US taxes. You're fucked if you own multiple properties, businesses, capital gains, etc.

Last few years they were randomly checking people entering US with US passports, or Canadian passports with US birthplace to ensure you're up to date on US tax filings. Now they'll go directly after your info through bank requests. Not sure if Canadian banks have access to seize funds and property though.

[rage2]

Here's a great high level read for US citizens and green card holders that are affected.

http://www.bmo.com/pdf/nesbitt/USCit...20BMO%20NB.pdf

Some of the shit sucks. Capital gains exemption for primary residence in the US is capped at 250k lifetime only in certain cases, so you gotta pay US taxes against that whenever you sell a home for more than the purchase price.

[ZenOps]

Don't know the maximum backtaxes, or how they would calculate them. Its a nightmare for citizens because you know that the banks were having difficulty figuring it out.

I can imagine that if you are found owing and have a bank account, they will simply take the money from the account. I can imagine that if they can do that, they can also raise the maximum amount they can take, and raise the seven or so years that you are supposed to be "safe".

Taxmen... Evil. I don't even know if you renounced your US citizenship by now that you would be exempt from backtaxes, but I can imagine you might be able to argue it (for your kids anyhow)

That "Freeman on the land" looks ever more tempting with each passing day.

[Xtrema]

Originally posted by rage2
Not sure if Canadian banks have access to seize funds and property though.

I believe what I heard this morning is the process will be handled by CRA. So it's a Canadian agency seizing funds on IRS request.

And only people with more than $50K in bank will be scrutinized and raise a red flag.

[bignerd]

Previously they were saying the CRA would collect the info and send it on but would NOT seize money owed to US.

It is all pretty confusing. I have dual citizenship, have never done taxes as I had it when I was a teen and didn't know I was supposed to. Have never lived or worked there, so really is a pain to do the taxes. They say they won't be sending info until 2015 so not even sure where to begin...

Start doing taxes going forward? Have to do the last 7 years of back taxes? Don't know. Hoping better and more accurate info will be forthcoming.

[rage2]

Originally posted by bignerd
It is all pretty confusing. I have dual citizenship, have never done taxes as I had it when I was a teen and didn't know I was supposed to. Have never lived or worked there, so really is a pain to do the taxes. They say they won't be sending info until 2015 so not even sure where to begin...

Start doing taxes going forward? Have to do the last 7 years of back taxes? Don't know. Hoping better and more accurate info will be forthcoming.

The info's been out forever, these laws and tax obligations have been in the books since the 80's. It's just that now they're going after Canadians. Like I said, if you're a T4 earner, you basically won't owe anything and it's all paperwork. It's when you earn money and get Canadian tax exemptions (or lower taxes compared to US) where it gets problematic.

The only thing that changed now is that IRS has access to Canadian bank info.

If your earnings is more complicated than a T4, you need to talk to a US tax accountant to figure things out for you. I believe the amnesty program is over now, so if you do owe anything to the US, you're liable for penalties as well.

I mentioned this in the previous US thread, but if you're a US green card holder, this affects you as well, as you're basically a US citizen in the eyes of the IRS.

[bignerd]

I have a few things other than T4's but no significant amounts and until recently never made much money.Most investments are in LIRA's and RRSP's which are also supposed to be exempt.

I have read into it some and some of what I was reading was that they were going to be collecting info on joint accounts and all which is where it gets somewhat confusing.

It is tempting to just get caught up and renounce it since I do feel it isn't any of their business since I don't work or live there, and certainly am not hiding unpaid taxes but US citizenship is a pain to get. Might want to work down there one day.

[frizzlefry]

I find it funny how many people try so hard to avoid taxes in the USA. If I was a yank, knowing what taxes I would pay elsewhere, I'd be all.....

[sabad66]

can anyone recommend a US tax advisor/accountant? I think i'm just going to start this year and not bother with back taxes since my income was way below the 97k limit the past few years. h&r block does it but would rather go with someone a bit more reputable that I can use every year

[ZenOps]

Originally posted by frizzlefry
I find it funny how many people try so hard to avoid taxes in the USA. If I was a yank, knowing what taxes I would pay elsewhere, I'd be all.....

Its not always necessarily the straight up dollars. IE: If you were a Vietnamese American that expated during the Vietnam war, you might have tried to make sure that no tax dollars, or any sons or daughters tax dollars went into the US war machine.

There are still many who would pay less if they adhere to the US tax code (instead of an adopted country) but they simply do not want to or are morally objected against contributing to the US.

If one sheltered in Canada, I'd assume they would be sympathetic to the monarchy. If Donald Trump becomes president and institutes a 25% tax on China, then I'd expect many Chinese US descendants to renounce their US citizenship.

[googe]

Originally posted by rage2



If your earnings is more complicated than a T4, you need to talk to a US tax accountant to figure things out for you. I believe the amnesty program is over now, so if you do owe anything to the US, you're liable for penalties as well.

It has nothing to do with being a T4 earner, because even that depends on if you make over $97,600 or not.

[dexlargo]

There's also a tax treaty between Canada and the US. Certain types of income are exempt - no matter what the amount is. Most notable to me is Article XIX which basically exempts income paid to government employees.

Full wording of the treaty/convention: https://www.fin.gc.ca/treaties-conventions/usa_-eng.asp

Additionally, renouncing US citizenship does NOT eliminate obligations for filing and paying taxes from years prior to renouncing.

Originally posted by rage2
Some of the shit sucks. Capital gains exemption for primary residence in the US is capped at 250k lifetime only in certain cases, so you gotta pay US taxes against that whenever you sell a home for more than the purchase price.

Maybe I misunderstand your point, but that would only affect you if you were selling property located in the US. If you sell your primary residence in Canada, it is exempt from capital gains in Canada and Article XIII paragraph 4 of the tax treaty says that if the property is sold in the same country in which you reside, only that country may collect capital gains on that property - Canada chooses not to, so you pay no capital gains on it anywhere.

[ZenOps]

But does renouncing remove obligations for children with alternate citizenship?

And for young people, it would be silly to renounce (as you give up on the ability to ever become a Hawaiian welfare recipient if you ever totally screw things up that badly)

Renouncing is really only for old people who have made a few million and are looking to pass on (estate tax, etc) under a different or no affiliation to any country.

People are not salmon. Growing up with you guys is great, but I do see the point of flying my own flag (Instead of being forced on the team that has stars, or a big leaf on it, depending on what some MP decides is legal at any given time)

[dubhead]

So I need to renounce the citizenship I didn't even know I had? (My dad's American)

[rage2]

Originally posted by googe
It has nothing to do with being a T4 earner, because even that depends on if you make over $97,600 or not.

That's why I said generally speaking. I wasn't sure what the limit was.

Originally posted by dexlargo
Maybe I misunderstand your point, but that would only affect you if you were selling property located in the US. If you sell your primary residence in Canada, it is exempt from capital gains in Canada and Article XIII paragraph 4 of the tax treaty says that if the property is sold in the same country in which you reside, only that country may collect capital gains on that property - Canada chooses not to, so you pay no capital gains on it anywhere.

Weird, I wonder why BMO had that in their US Citizens living in Canada doc. I just assumed it was like any other income, liable on both sides, and no credits given because none is paid in Canada due to exemption.

All this shit is complicated as fuck.

[Toma]

America is one of the ONLY places on earth, that no matter where you live, or if you have never set foot in the US....

If you are American (ie, one of your parents was), you are liable for taxes, and must file a yearly American tax return).