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 U.S. citizens to come forward to file delinquent U.S. 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 U.S. ineligible. We blogged about this, see these links:
- Internal Revenue Service announces changes to Streamlined Programs
- IRS Streamlined Procedures – Update on Non-Residency Requirements
FATCA Enacted
On July 1, 2014, the US’s Foreign Account Tax Compliance Act became law worldwide. Canada and the U.S. signed an intergovernmental agreement earlier in the year. Our earlier blogs discussed this in detail, see these links:
- FATCA and Non-U.S. Filers, the odds of the IRS finding you are increasing
- Will FATCA be implemented in Canada?
- US tax Confusion for US Persons in Canada
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 U.S. 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/
