According to The Sun, IRS Targets Yanks In Canada.
I think this relates to the regs which were just released. Are these the ones Flaherty said he was “happy” with? I haven’t seen the regs yet, but I wanted to post this.
Despite the Sun headline, it is my understanding this does not just apply to Canada, but is, of course, worldwide.
Before anyone panics, remember, CRA will not collect any penalties for IRS for failure to file a report with IRS. CRA will not collect any tax liability on any Canadian citizen even if that person was also a US citizen at the same time.
Also remember what Steven Mopsick said. IRS is unlikely to pursue those of us who have been citizens elsewhere for years or decades. Michael J Miller said those of us who expatriated before 2004 were not required to advise DOS.
Calgary411 has posted a Moody’s Announcement at Brock. There is discussion going on there. Calgary’s conclusion is “Good luck roping more in.
For those of us who have been around, this is really nothing new. More scare tactics. It’s going to do exactly that for those who are first learning of it.
This is going to cause a stressful long weekend for a lot of people. If they find their way here, we need to reassure them. Don’t Wake The Sleeping Bear.
I get a Proxy Error on the link to the Sun Article. Is there another link that works?
ACA just announced the passing away of its founder, Andy Sundberg http://americansabroad.org/
http://www.swissinfo.ch/eng/politics/foreign_affairs/American_Citizens_Abroad_founder_dies.html?cid=33422364
I would like to express my condolences to his family, friends, and colleagues. He has made extraordinary contributions to the cause of US persons abroad and he will be sorely missed.
@Jefferson, thanks for posting this. Can’t help but wonder wonder if the stress of FATCA, etc contributed to his stress. He was only 71. My condolences also to his family.
Indeed he will. I only know him by email, and his regular commentary on what has happened to American’s abroad.
It was with his permission, that I re-posted several of his commentaries at Isaac Brock. For readers that have an interest, here are the links that out live him over here…
http://isaacbrocksociety.ca/2012/09/01/andy-sundberg-passes-away/comment-page-1/#comment-51296
@Jefferson: Sad news. A great loss to the fight.
@Just Me: How are you trying to access the article? When I try the link on my tablet, I get a message that it is not yet available on mobile devices. On my computer, there is not problem. Weird. I don’t think I can copy and paste the full article here without violating copyright.
Likewise, when I try to access the Sun article directly, I can do so on my computer, but not on my tablet. Twitter bitly link is also a problem on both tablet my and computer.
Is anyone else having a problem accessing the link to the Sun article?
The link doesn’t work for me either. I tried directly at the Toronto Sun site and seems there are problems there.
Must be something wrong with their server, as this morning, I now get the response… Service Temporarily Unavailable
Here is a link to the “Breaking News” on this from Moody’s
http://www.moodystax.com/moodystax-blog/21-us-taxation-services/201-breaking-news-irs-releases-details-of-special-streamlined-procedure.html
And here is a link to the instructions from IRS
http://www.irs.gov/uac/Instructions-for-New-Streamlined-Filing-Compliance-Procedures-for-Non-Resident-Non-Filer-US-Taxpayers
Now I’m having a problem at The Sun too. So, the problem seems to be with their site. I tried checking out some other articles there just as a test and I had the same problem.
I am not a Sun reader, so I don’t know if this is a one time issue or if it is common.
Just a quick note on the new IRS “streamlined” procedures. For many of us here at the Sandbox, the procedures means nothing as we haven’t considered ourselves subject to U.S. taxation since obtaining Canadian citizenship many years ago.
However, for those who feel it necessary to file U. S. returns, the new announcement is only a very slight improvement. There are still too many unknowns.
As one cross border tax professional blogged in March of last year, what the U.S. should have is a real amnesty program similar to CRA’s.
I’d really would like to hear Just Me’s take on this as compared to OVDI.
To me it is just typical IRS protocol. They learn nothing! I think they are incapable of institutional change. It is a mindset they have. They draw a program very narrowly, make it overly complicated, still require you expend a lot of LCUs and expense to become compliant and throw up lots of technical restrictions, while still threatening you with criminal prosecution if you don’t meet their definition of “reasonable cause”. It is not a welcoming program that many would want to enter, I think.
The entire Toronto Sun server seems to be having issues. Cannot access anything there, and links to it on all articles and blogs are broken. Maybe it’s the millions of former and dual US citizens hitting their site in panic because of the inflamatory headline that have overloaded their server. 🙂
Exactly! Art Cockfield has it right. It’s a trap. If you read the guidelines posted June 26, it was very obvious that the IRS was reserving the right to audit or to penalize anyone they want. It was touted as being great for those who had never filed taxes, but in the guidelines themselves they stated that not having filed taxes could be a reason for the IRS to audit and/or penalize. Say what? The media response has been very disappointing. I was so upset about that, and Flaherty’s self-aggrandizing public statement of approval, that I agreed to do a little interview with CBC radio which was supposed to air the next day. I was very excited, because a journalist actually came to my home to talk to me, and record my opinions, so I thought YES! CBC’s going to do a real story on this issue. Disappointingly, Calgary411 and I listened for it, but never heard it. I do not believe they ever aired it. We need someone like CBC to do real stories to a) counteract the inflammatory IRS-created propaganda that so many media outlets spout, and b) to wake up the general population about how the US is trying to encroach into other countries.
I heard a CBC sound byte on this on yesterday afternoon’s Calgary radio show. It was, as many media responses, very disappointing (the story will be that the IRS has even more solved US persons tax problems). It is all so tiring!
Note: I have updated links at the Isaac Brock site. IRS has released a completely revamped site, with mostly dead former links.
I will note this program is far more “strict” than what was done back in the early 1990s when there was a somewhat marginal attempt right after Gulf War One to get non resident non filers back in the system(and a which time nationality law just previously underwent a pretty substantial change).
Robert Wood at Forbes is suggesting caution at “low risk” OVDI. He doesn’t suggest an alternative here. I hope we will hear more.
http://www.forbes.com/sites/robertwood/2012/09/01/newest-offshore-irs-amnesty-not-for-everyone/
However, for many of us, we are not and have not been “US persons” for years or even decades–despite what IRS may now try to claim.
For us, the solution is simple. Don’t do anything. Don’t Wake The Sleeping Bear!
Do you remember some old adventure movies when unsuspecting adventurers get stuck in quicksand and disappear? The new guidelines from the IRS reminds me of those movies.
The IRS not only has leaden shoes, but also a leaden brain and a leaden soul.
And that’s being charitable.
I’m also reminded of the many excellent FATCA comments made by financial institutions and organizations at great cost to them in both time and money that have barely budged the geniuses at work at the IRS.
Here’s Roy Berg’s synopsis of what the new streamlined guidelines mean
http://www.moodystax.com/moodystax-blog/21-us-taxation-services/202-do-you-qualify-for-irss-new-streamlined-procedure-to-bring-us-tax-returns-current.html
The beginning sums up a lot: “If you are a US person residing in Canada and are one of the unfortunate few who does not have a graduate degree in US tax and who is not related to a cross-border US tax professional you may have missed filing one of the myriad of tax forms that are required every year (the failure to file of which can carry dire penalties).”
Roy adds a new metaphor for us: Entering the Lobster Pot by completing IRS questionnaire for new streamlined procedure. I’m staying out of the lobster pot, away from IRS quicksand, not waking the sleeping bear, off the FATCA train (which is going to collide and derail) and not setting sail on the Franklin expedition (which is going to hit a gigantic iceberg).
I’m not a US person. American Taxman Stay Away From Me!