What is FATCA, and why should I care?
FATCA stands for the US Foreign Asset Tax Compliance Act.
It is a law which is focused on YOU as an American living abroad.
The IRS continues to narrow its focus on Americans living abroad to continue making it harder and harder for Americans to shirk their filling obligations when living abroad.
Opened up a bank account recently in Canada?
Ever wondered why the bank asked you if you were a US citizen?
FATCA is the reason.
When you answer yes, they will ask for your social security number, so that the IRS has record of your banking activity in Canada.
There is a CBC article explaining how a Vancouver dual US/Canadian Citizen is being sued by the IRS for approximately $1.1 Million Canadian Dollars.
Does this worry you because you are behind on your US taxes? No need to worry- at US tax resources we have you covered.
If you qualify, you may be eligible for the IRS’ Streamlined Foreign Offshore
Procedure. No matter how far you are behind you are, you only need to file three years of past due tax returns and six years of Foreign Bank Account Reporting (FBAR) forms. No penalties will be assessed for the late filing of the tax returns and FBAR’s.
Contact us to learn more.
About the author: Ian Davis is currently Canada’s only former IRS auditor; and Founder and President of US Tax Resources Inc. A Canadian firm whose mission is to provide stress relief from US tax through simple and affordable tax preparation and advisory services.
Ian is a dual US/Canadian citizen living with his family in Canada.