US Cross-Border Tax Blog

Published by W.L. Dueck LLP

WLDTax

While you were away

The weather this summer in the Lower Mainland was one of the best in memory.  So while you (and us) were busy on the water or on the golf course, both countries were busy changing and tweaking tax laws as they apply to individuals in a cross-border environment.

Internal Revenue Service – Streamlined Program Changes

In June, the IRS modified its procedures to allow US citizens to come forward to file delinquent US tax returns and forms without penalty.  While the program was enhanced to include others that were not previously eligible, the IRS added a requirement that may make those who travel frequently to the US ineligible.  We blogged about this, see these links:

FATCA Enacted

On July 1, 2014, the US’s Foreign Account Tax Compliance Act became law worldwide.  Canada and the US signed an intergovernmental agreement earlier in the year.  Our earlier blogs discussed this in detail, see these links:

Canada Revenue Agency – Form T1135

Canada Revenue Agency made changes to Form T1135 – Foreign Income Verification for the 2014 and later tax years.  Taxpayers can now combine and total amounts for non-Canadian properties held in accounts with Canadian trust companies and registered securities dealers.  This change should make reporting and gathering information much easier next year.

Further details can be found here:

http://www.cra-arc.gc.ca/E/pbg/tf/t1135/README.html

US Immigration

Want to renounce your US citizenship?  The fees to do so went from $450 to $2,350, an increase of over 400%.  Further details are here:

http://www.forbes.com/sites/robertwood/2014/08/28/u-s-hikes-fee-to-renounce-citizenship-by-422/

Written by Steven Flynn, CA, CPA

 

 

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