U.S. filing obligations

Are you a US citizen living in Canada?

If you’re not up to date on your filing obligations (or don’t know what they might be), listen up!

The U.S. Foreign Account Tax Compliance Act (“FATCA”) is an international law requiring financial institutions to report information on accounts held by U.S. persons, including Canadians with dual citizenship or U.S. citizens living in Canada.

In 2018, the Canada Revenue Agency shared approximately 900,000 financial records belonging to Canadian citizens with the US Internal Revenue Service.

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What does this mean for you?

If you are a U.S. citizen living in Canada, you may have filing obligations, even if you no longer have any significant residential ties to the United States. Financial institutions may already be sharing information about your varied accounts with U.S. authorities for the purposes of investigation and/or to compel you to file appropriately. Penalties for non-filing vary and can be significant depending on the magnitude of the lapse.

If you are a U.S. citizen living in Canada and are unsure of what your obligations are, contact us and we can help you understand your potential responsibilities.

Reference: https://www.cbc.ca/news/politics/fatca-tax-us-canada-1.5353942