January 13, 2014: Calgary 411 Interviewed By CBC On Consequences of U.S. FATCA Law to Her Family

This Jan 13 2014 interview, entitled “U.S. FATCA tax law catches unsuspecting Canadians in its crosshairs” is at:
Some excerpts from this important interview given by a brave and outraged Canadian mother:

“A Calgary woman’s developmentally disabled son is caught in a U.S. tax quagmire that she fears may cost him the money she spent years setting aside for his financial future.
“He’s entrapped,” said [Calgary 411], the 70-year-old mother. “There’s no way out. He is entrapped into U.S. citizenship.”
Her 40-year-old son was born in a Calgary hospital, but automatically received U.S. citizenship because both his parents were American. That simple fact may soon create financial woes for [my family].”

“Tax law expert Allison Christians calls the …case “ridiculous” and a “classic example of why the law is unjust.”

“For [Calgary411], the financial burden has already been costly. She spent thousands of dollars seeking legal advice on how to renounce her son’s U.S. citizenship. Under the law, a parent, guardian and trustee cannot renounce on someone’s behalf.
‘I wanted my son to have something when I was gone from this Earth.’
She refuses to file U.S. taxes for her son, fearful that it would chip away at the funds she’s stashed in a Registered Disability Savings Plan (RDSP) and a Tax Free Savings Account (TFSA).
“I see no common sense in it,” she says. “Put me in jail. I don’t care. But I’m not going to do that.”

5 thoughts on “January 13, 2014: Calgary 411 Interviewed By CBC On Consequences of U.S. FATCA Law to Her Family

  1. Once again, IRSC and I have cross-posted simultaneously without realizing it. I’m suggesting we leave both posts up; his quotes from the article, saving readers the bother of following the link (though I encourage this, also see a couple of excellent linked CBC articles listed below the Tapanila article).
    I think this excellent article and coverage deserves a double-posting.
    As noted on my other post, please everyone blitz your MP and his/her party leader with this link and cover comments. I also sent a strong message to Flaherty and Harper separately about how unacceptable an IGA will be to Canadians and how this will affect them in the next election if they proceed with an IGA.

  2. @Schubert & IRSCompliant – I agree – totally worth multiple postings – that CBC is finally paying REAL attention – and not painting us as rich tax evaders is worthy of notice.
    @Calgary411 – kudos to you! Great interview, great article. The comments on the CBC page are now numbering over 1500! And most of them are from thinking, reasoning people, not trolls. Great work, really!

  3. Why is he an American citizen?. Did she register his birth with a US consulate ? The onus will be on banks to find out who is a US person and they will do that by asking where he was born . He was born in Canada , end of story. If the IRS wants a complete family tree they can get it themselves, but I doubt the Canadian banks will pursue it much further if he was indeed born in Canada. His ties to US citizenship are tenuous at best.

  4. @disala – although born in Canada, he is automatically a US citizen by dint of being born to two US citizens. His mother went through the hoops to formally renounce, so the US is, indeed, aware of his existence and US citizenship, as she is his guardian. She had to file FBARs on the registered disability savings accounts set up on his behalf.

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