Friday, September 23, 2011

Beginning in 2014, the Foreign Account Tax Compliance Act will compel Canadian financial institutions to report accounts held by U.S. citizens to the IRS.

TORONTO - Dave, a bewildered American living in Canada, turns to an anonymous forum to ask whether — even though he has "nothing more to do with the USA other than my citizenship" — he should be filing taxes to Uncle Sam.

The answer is yes. But it's a question most of the one million or so Americans living in Canada appear to have ignored until now.

There are a number of people who fall into this category: green card holders unaware they are considered citizens; those who came as very young children and some who believe since their Canadian taxes offset their U.S. taxes, they are not required to file.

But times have changed and U.S. President Barack Obama has made it clear combating tax evasion is one of his priorities as the indebted country seeks ways to shore up revenue.

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