2015 “Solving US Citizenship Problems” – “Have You Received a FATCA Letter?”

 

NB: CALLING ALL EU BROCKERS

I am looking for known contacts in Budapest, Bratislava, South Tyrol, Burgenland & Vienna. Interested in local information only. Complete confidentiality assured. If you know someone, please email me at nobledreamer16 at gmail dot com

TORONTO Saturday, February 14, 2015

9:00-11:00 am -$20.00    &   12:00-6:00pm – N/C

100 St. Joseph St., Carr Hall Room 105, Toronto MAP

 
 
LONDON UK Monday, March 2, 2015

18:30 – 20:30 (GMT), £15
 
University of London – International Hall Meeting Room

Lansdowne Terrace, London MAP

 
PARIS FRA Details TBA

 
INNSBRUCK AUT Friday, March 6, 2015

5:00 – 8:00 pm € 15

HTL Trenkwaldstrasse, Aktsaal W214, 2. Stock Werkstatttrakt

Trenkwaldstrasse 2, A-6020 Innsbruck MAP

 

VIENNA AUT Saturday, March 7, 2015

2:00 – 5:00 pm (CET), €15

Kolpinghaus Wien Zentral, Raum Festing

Gumpendorfer Strasse 39, A-1060 Vienna MAP

 
BUDAPEST HUN Monday, March 9, 2015

2:00 – 5:00 pm (CET) – Ft 4500

Buddha Bar Hotel, Zen-Karma Meeting Rooms

Váci utca 34, H-1052 Budapest MAP

 

HAMILTON Thursday, March 26, 2015

6:30 – 8:30 pm – $20.00

McMaster Innovation Park, 175 Longwood Road S., Suite 105
Hamilton, ON L8P 0A1 MAP

 
LONDON ON April 22, 2015 Details TBA

Have you received a FATCA letter or been warned of the consequences of being a U.S. person?

 
Why am I getting letters from my bank all of a sudden?

The “FATCA Hunt” – the hunt for U.S. persons (whatever that is) began on July 1, 2014 which was “Canada Day”. Although both the definition of “U.S. person” and whether one meets the definition is not always clear, the search has begun. The level of FATCA awareness has begun. Some organizations are actively warning people that “U.S. Personness” matters. The purpose of the warning is presumably to encourage people to ”come clean” and deal with their U.S. tax situations. In some cases, there is no particular warning – just a letter indicating that they are suspected to be a “U.S. person”. Often one must prove to the institution sending the letter that one is not a U.S. person.

What individuals are U.S. taxpayers? Who is a U.S. citizen?
There are individuals that the U.S. government would define as “U.S. citizens” who:

  • do NOT agree that they are U.S. citizens because they have performed a “relinquishing act” under applicable U.S. laws;
  • do NOT even know that they may be U.S. citizens because they have never lived in the United States
  • are citizens and residents of countries that do NOT allow multiple citizenships

To put it another way: one’s status as a U.S. citizen is NOT always clear.

I have never heard of these requirements! What determines the income that must be reported to the IRS? What “Information Returns” are required to be reported to the IRS?

  • FBAR (Now called FinCen 114)
  • FATCA 8938 – Report of Specified Foreign Assets
  • 5471 – Information return for Foreign Corporation
  • 3520 – Information return for a “Foreign Trust”
  • 3520A – related to the 3520

I am only a snowbird! Why does this affect me?

  • Substantial Presence Test
  • Form 8840 Closer Connection Exception Statement for Aliens
  • Caution: Streamlined Programs & 35 day rule – Catch 22

What are the ways I can become compliant?

  • Offshore Voluntary Disclosure Program – AKA “OVDP – Not appropriate for the vast majority of people
  • Streamlined Compliance – A pre-packaged way to “clean up” past compliance problems
  • Obeying the law – filing amended tax returns outside the “IRS Created” programs
  • Delinquent FBAR Submission Procedures

What costs are involved in renouncing U.S. citizenship?

  • The costs of a total of 6 years (5 years prior the year of renuncation plus the year of renunciation) of tax compliance and information returns
  • The cost of any back taxes and penalties
  • A $2350 administrative fee
  • possibility of having to pay an “Exit Tax” (which can be the biggest problem)

WHO: John Richardson, B.A., L.L.B., J.D., is a Toronto lawyer and a member of the Ontario Bar.
Citizenshipsolutions.ca

Hope to see you, your families & friends. Spread the word!

Information presented is NOT intended or offered as legal or accounting advice specific to your situation.
 
 

5 thoughts on “2015 “Solving US Citizenship Problems” – “Have You Received a FATCA Letter?”

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Optionally add an image (JPEG only)