Fatca services.ca | FATCA & U.S. Voluntary Disclosures | 416-626-2727
taxescanada2011
2015-08-01
Views 4
http://www.fatca-canada-compliance-services.ca
Hello, this is Chris from fatcaservices.ca and I will be speaking about tax compliance for U.S. Persons who live abroad. As of July 1st, 2014, FATCA, also known as the Foreign Account Tax Compliance Act has taken into effect. Foreign financial institutions will, by law, be required to file financial account information of individuals with U.S. ties to the IRS. Many U.S. persons are unaware that even though they live outside of the U.S., they are still required to prepare a U.S. tax return every year.
Luckily, there are tax treaties that make sure you are not double taxed on the income you earn outside the United States. In addition to the tax return, there are several information returns which U.S. persons will also have to file. You may be required to file these information returns if you hold financial accounts outside of the U.S. and if their values meet a certain threshold in total. In addition, if you hold TFSAs or RESPs in Canada, there are special rules on how they are treated on your U.S. tax return. With FATCA in place, the IRS may be able to obtain all this information from your financial institutions. Even though you may not have filed a tax return or information return in the past, the IRS has implemented the Streamlined Filing Compliance Procedures which allows U.S. Tax Payers to submit delinquent returns. Under this voluntary disclosure, you will have to file 3 years of Tax Returns and Information returns and 6 years of the Reports for Foreign Banks and Financial Accounts. This has become a very complicated area and varies depending on your situation so it is best to contact a U.S. tax specialist who can assist. We have extensive experience in this area and can ensure that you are tax compliant. The rules keep on changing so it is very important to ensure that you take advantage of the present rules as they could cancel at any time. For more information you can check our website at fatcaservices.ca, email us at [email protected] or phone us at 416-626-2727. Thank you for listening.
Hello, this is Chris from fatcaservices.ca and I will be speaking about tax compliance for U.S. Persons who live abroad. As of July 1st, 2014, FATCA, also known as the Foreign Account Tax Compliance Act has taken into effect. Foreign financial institutions will, by law, be required to file financial account information of individuals with U.S. ties to the IRS. Many U.S. persons are unaware that even though they live outside of the U.S., they are still required to prepare a U.S. tax return every year.
Luckily, there are tax treaties that make sure you are not double taxed on the income you earn outside the United States. In addition to the tax return, there are several information returns which U.S. persons will also have to file. You may be required to file these information returns if you hold financial accounts outside of the U.S. and if their values meet a certain threshold in total. In addition, if you hold TFSAs or RESPs in Canada, there are special rules on how they are treated on your U.S. tax return. With FATCA in place, the IRS may be able to obtain all this information from your financial institutions. Even though you may not have filed a tax return or information return in the past, the IRS has implemented the Streamlined Filing Compliance Procedures which allows U.S. Tax Payers to submit delinquent returns. Under this voluntary disclosure, you will have to file 3 years of Tax Returns and Information returns and 6 years of the Reports for Foreign Banks and Financial Accounts. This has become a very complicated area and varies depending on your situation so it is best to contact a U.S. tax specialist who can assist. We have extensive experience in this area and can ensure that you are tax compliant. The rules keep on changing so it is very important to ensure that you take advantage of the present rules as they could cancel at any time. For more information you can check our website at fatcaservices.ca, email us at [email protected] or phone us at 416-626-2727. Thank you for listening.
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