IRS Goes After Americans Living in Foreign Countries – FACTA

FATCA, the Foreign Account Tax Compliance Act was recently enacted by the Obama Administration. The act requires all those living in foreign countries to file U.S. tax returns and detailed annual foreign account disclosure statements, going back to 2003. This has created a dilemma for Americans living in Canada, most of them unaware of the law.

The act affects Americans with dual citizenship and those that are legal landed immigrants in Canada. While they have diligently paid their taxes in Canada, the IRS is pursuing them for disclosure of accounts and annual tax returns, subject to fines of up to $10,000 per year. It should be noted that none of this income is necessarily earned in the United States.

To complicate the issue, foreign banks would be forced to disclose all accounts held by U.S. citizens and impose a 30% tax. Banks would be subject to heavy penalties.  Read More Here

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Karl Gotthardt - Politisite Managing Editor Maj. Gotthardt is a Retired Military Officer with 35 years service in the Canadian Armed Forces. He spent most of his time in the Military in Infantry Battalions. Karl took part in training for Afghanistan as an Operator Analyst with the Canadian Maneouvre Training Centre. Karl is a qualified military parachutist and military free fall parachutist. He earned his U.S. Master Jump Wings in Fort Benning, Georgia. Karl enjoys working with horses for the last 24 year. He owns six. He has experience in breeding, training and of course riding.Karl was born in Germany and is fluent in both English and German and he speaks enough French to "get in trouble". Karl has written or writes at NowPublic, All Voices, Tek Journalism and many others.

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