USResidentsin Canada - - Foreign tax credit IRS has stated...

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U.S. CITIZENS AND GREEN CARD HOLDERS LIVING OUTSIDE THE UNITED STATES TAX RETURN Required to file annually, reporting world income, if gross income is equal to or greater than the applicable exemption amount and standard deduction. February 8, 2011 Offshore Voluntary Disclosure Initiative Amnesty to August 31, 2011 Pay back taxes and interest for six (??) years. No criminal prosecution. Penalty up to 25% of the maximum amount in undeclared accounts at any point between 2003 and 2010. 12.5% penalty for accounts less than $75,000 in aggregate 5% penalty in limited situations On Demand after August 31, 2011 Possible criminal prosecution. May lose certain credits, exemptions and deductions Possible seizure of bank accounts through CRA Possible seizure of automobile when crossing in to U.S. Non-reporters could also be caught when they renew their passport. Potential Relief - Canada-U.S. Tax Treaty
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Unformatted text preview: - Foreign tax credit IRS has stated that no penalty will be assessed if no tax is owed. NON-U.S. FINANCIAL AND OTHER ASSETS Foreign Bank and Financial Account Report Assets over $10,000 Non U.S. Located Assets to Report- Real property- Bank and investment accounts- Bonds- Securities- Other financial instruments- Mutual funds- Interests in corporations and partnerships- Automobile- Artwork- Jewellery- Prime residence in some situations IRS has stated that no penalty will be assessed of the failure to file is due to reasonable cause. NEW FOREIGN ASSET RULES FOREIGN ACCOUNT TAX COMPLIANCE ACT In effect after 2013 Aggregate value $50,000 and over Tax years beginning after March 18, 2010. $10,000 penalty for failure to file. Penalty up to $50,000 for continuous failure to file following notification by IRS. 40% tax on unreported income from these accounts. Enforced by a 30% penalty on the U.S. income of non U.S. financial institutions...
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USResidentsin Canada - - Foreign tax credit IRS has stated...

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