These Canadians are "accidental Americans" because of a quirk of their birth. Or, to use your term, "technically" Americans. Like you, they have lived their entire lives as citizens of just one country--Canada. Some are now in their 80s and 90s.
They, like you, were shocked and dismayed to learn another country considered them citizens. Much worse was learning that country demanded they should have been filing income tax returns to United States Internal Revenue Service (IRS) on their entirely earned Canadian income.
Instead of making it easy for these Canadians to renounce US citizenship, IRS demands five years of U.S. income tax returns from them. There is usually no tax owing, but accounting and legal fees are exorbitant.
Even worse are demands "US persons" file Foreign Bank Account Reports (FBAR), detailing all assets over $10,000 held in Canadian financial institutions. Failure to do so can result in massive financial penalties of the greater of 50% of the value of the account or $100,000. This includes accounts held with Canadian-born spouses or business partners..
Finally, IRS is trying to force its way into Canada with outrageous demands that Canadian banks and other financial institutions give IRS information on total assets, account balances, transactions, account numbers and other personal identifying information on all "US persons" in Canada under U.S. Foreign Account Tax Compliance Act (FATCA).
I can imagine your screams if Canada tried to demand you and your banks provide anything similar on the accounts you and your American-born wife hold.
U.S. Congress and IRS show utter contempt for Canada and other countries around the globe as they launch their FATCA attack on laws, constitutions, financial institutions and people worldwide.
In addition to "technical" Americans, IRS is also after:
Naturalized Canadian citizens who were told by US Consulates three, four or five decades ago that they were "permanently and irrevocably" relinquishing US citizenship by becoming Canadian citizens. They have lived as Canadian citizens only since then.
Canadian citizens born and raised in Canada by a parent who was born in U.S. (similar to how you were raised in United States by a parent born in Cuba)
Naturalized Canadian or American citizens with dual Canadian and U.S. citizenship, but only Canadian income;
.
Canadian citizens who temporarily worked in U.S. on a Green Card
Some Canadian "snowbirds" who support U.S. economy spending winters in southern states, but with no U.S. income and paying taxes to their homeland--Canada.
President Obama and Senator Carl Levin insist we are all a bunch of tax-evading traitors and criminals because we have legal checking, savings, retirement, education, and disability accounts in the communities where we live, work, retire, save, invest--and pay taxes.
Why Not Renounce?
So, why don't we simply renounce our US connection like you plan to do with your Canadian citizenship?
Not so fast, says Congress, IRS, and US Treasury.
They, like you, were shocked and dismayed to learn another country considered them citizens. Much worse was learning that country demanded they should have been filing income tax returns to United States Internal Revenue Service (IRS) on their entirely earned Canadian income.
Instead of making it easy for these Canadians to renounce US citizenship, IRS demands five years of U.S. income tax returns from them. There is usually no tax owing, but accounting and legal fees are exorbitant.
Even worse are demands "US persons" file Foreign Bank Account Reports (FBAR), detailing all assets over $10,000 held in Canadian financial institutions. Failure to do so can result in massive financial penalties of the greater of 50% of the value of the account or $100,000. This includes accounts held with Canadian-born spouses or business partners..
I can imagine your screams if Canada tried to demand you and your banks provide anything similar on the accounts you and your American-born wife hold.
U.S. Congress and IRS show utter contempt for Canada and other countries around the globe as they launch their FATCA attack on laws, constitutions, financial institutions and people worldwide.
In addition to "technical" Americans, IRS is also after:
Naturalized Canadian citizens who were told by US Consulates three, four or five decades ago that they were "permanently and irrevocably" relinquishing US citizenship by becoming Canadian citizens. They have lived as Canadian citizens only since then.
Canadian citizens born and raised in Canada by a parent who was born in U.S. (similar to how you were raised in United States by a parent born in Cuba)
Naturalized Canadian or American citizens with dual Canadian and U.S. citizenship, but only Canadian income;
.
Canadian citizens who temporarily worked in U.S. on a Green Card
Some Canadian "snowbirds" who support U.S. economy spending winters in southern states, but with no U.S. income and paying taxes to their homeland--Canada.
President Obama and Senator Carl Levin insist we are all a bunch of tax-evading traitors and criminals because we have legal checking, savings, retirement, education, and disability accounts in the communities where we live, work, retire, save, invest--and pay taxes.
Why Not Renounce?
So, why don't we simply renounce our US connection like you plan to do with your Canadian citizenship?
Not so fast, says Congress, IRS, and US Treasury.
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