IRS is looking to collect from canadians

[shadowshiv]

So what would occur to people that happened to be born in the US, but whose parents were Canadian citizens? For example, a Canadian couple were visiting relatives or friends in the US and the woman went into labor and gave birth in a US hospital. Doesn't that automatically give that child dual citizenship?

Also, does a child gain dual citizenship if they have a Canadian parent and an American parent(even if the child was born in Canada)?

I will admit that I don't know very much about this topic, hence the above questions.

 

[petros]

And nobody complains about a 2.3% tax on our GDP by the UN?

 

[ironsides]

So what would occur to people that happened to be born in the US, but whose parents were Canadian citizens? For example, a Canadian couple were visiting relatives or friends in the US and the woman went into labor and gave birth in a US hospital. Doesn't that automatically give that child dual citizenship?

Also, does a child gain dual citizenship if they have a Canadian parent and an American parent(even if the child was born in Canada)?

I will admit that I don't know very much about this topic, hence the above questions.

Yes they would be a citizen, but that is all. No IRS paper work to fill out, they just take their baby and go home. That baby in the future may want a United States passport and will have no problem getting one. Still no IRS requirements. That person wants a job in the U.S. they then will have to pay federal taxes to the U.S. (IRS requirements.)

Second question: No if father is American, Yes if mother is American.

 

[TenPenny]

"Canadian banks are also being targeted under the U.S. legislation. In three years, they'll face added tax on U.S. profits if they don't turn over the names of American customers."


How would Canadian banks know who is American unless they provided a address in the States. If it really bothers some who hold duel citizenship, just renounce U.S. citizenship if it hold no advantage to you. Bottom line is that those Cabadians who hold duel citizenship are not required to file a U.S. IRS form. What the IRS really is after is American's hiding illegal incomes in foreign banks.

One Canadian bank that I dealt with, and I can't remember which, wanted me to fill out a form for the US gov't to declare that I was not a US citizen. I just ignored it.

Also, anyone who has a credit card or deals with MBNA Canada, or Citibank Canada, are dealing with a US owned bank, so they'll probably be quite pushy about this paperwork.

 

[Machjo]

Those who have "enjoyed" dual citizenship with the USA are being being held to the fire to help out with their extreme debt, with the threat of seizing assets held in Canada.

They are all to file a US Tax return claiming their Income.

One client was born in Canada and his parents registered him as a Canadian/American dual citizen. With our high Canadian dollar his Income is worth more in US dollars than it would have been 10 years ago and therefore more likely to be a taxable situation.

As far as I'm concenred, this is a violation of Canadian sovereignty. Just as Canada should not tax Canadians residing abroad, the US should not tax US citizens residing in Canada. Of course the US government should be allowed to revoke the citizenship of whomever it wants when they're residing abroad, since citizenship essentially belongs to the state. However, it should have no right to impose its laws beyond its borders, and the Canadian government should step up to the plate here to defend its sovereignty.

 

[TenPenny]

As far as I'm concenred, this is a violation of Canadian sovereignty. Just as Canada should not tax Canadians residing abroad, the US should not tax US citizens residing in Canada. Of course the US government should be allowed to revoke the citizenship of whomever it wants when they're residing abroad, since citizenship essentially belongs to the state. However, it should have no right to impose its laws beyond its borders, and the Canadian government should step up to the plate here to defend its sovereignty.

A citizen of a nation should be subject to rules, including taxation, by that nation, no matter where you are resident.

 

[IdRatherBeSkiing]

My wife is American and she asked her brother-in-law who works for the IRS this question when it was brought to her attention. SInce she does not make $10k / year in income nor hold $10k in assets, she does not have to file. But if she did, she would need to file for any year those conditions are met.

Since my son is also American (as well as Canadian) I will make sure he files when those conditions are true.

 

[EagleSmack]

So what would occur to people that happened to be born in the US, but whose parents were Canadian citizens? For example, a Canadian couple were visiting relatives or friends in the US and the woman went into labor and gave birth in a US hospital. Doesn't that automatically give that child dual citizenship?

Also, does a child gain dual citizenship if they have a Canadian parent and an American parent(even if the child was born in Canada)?

I will admit that I don't know very much about this topic, hence the above questions.

IF I had to guess and from what I am gathering from this thread, and this child is an American citizen and is on the rolls, when she/he starts working they will have to file. They may not owe, but they will have to file according to the IRS.

I personally think the fines are BS as it seems that these Canadians come to the US only to visit relatives or vacation. To have this hanging over their heads every time they come here is (IMO) unfair. But hey, that is our IRS and they can be vicious. Fair is not in their vocabulary.

My wife is American and she asked her brother-in-law who works for the IRS this question when it was brought to her attention. SInce she does not make $10k / year in income nor hold $10k in assets, she does not have to file. But if she did, she would need to file for any year those conditions are met.

Since my son is also American (as well as Canadian) I will make sure he files when those conditions are true.

Nowadays a $10K salary is normal for a teenager I would think. I know my son has been making that fairly quickly working an after school and weekend job.

 

[ironsides]

One Canadian bank that I dealt with, and I can't remember which, wanted me to fill out a form for the US gov't to declare that I was not a US citizen. I just ignored it.

Also, anyone who has a credit card or deals with MBNA Canada, or Citibank Canada, are dealing with a US owned bank, so they'll probably be quite pushy about this paperwork.

You did the right thing to ignore it. I would do the same thing with a credit card, I do not remember ever being asked my nationality.

 

[Trex]

Wrong. Read above.

I'm embarassed that this thread is filled with so much misinformation.

You may be a citizen of both the USA and Canada, but if you aren't filing tax returns to the IRS, you are breaking the law and can be criminally prosecuted if you return to the US, or by extradition from countries where tax evasion is a criminal offense (Canada, yes, Switzerland, no). Source, random Google search

** edit: Sorry, I just noticed you live in the US. If you ever do decide to live in Canada, you are required to file and pay US taxes until you die or renounce US citizenship.


>> BUT, far too many people, including Canadians with dual citizenship, are hiding some or all of their income behind banking secrecy laws, etc. The US is cracking down on this (as they should have long ago).

Please give us some real numbers with sources! I can't even count on one hand of any Canadian I know who has any knowledge of bank secrecy laws. It's automatic to assume that Switzerland or Cayman Islands are the only known countries with bank secrecy, but the aforementioned aren't exactly "optimal tax regimes".

Who is the US to "crack down" on the laws of sovereign countries? Switzerland is one of the most democratic countries in the world. The United States has no right to "crack down" on people doing business in that country, outside of their own borders. Either way, tax law in the US is constitutionally questionable.

Right you are Andem.

This thread is loaded with erronious assumptions while your posts are pretty much spot on information wise.

I am a dual national: Canadian British(which is EU).
I worked for an international consulting company for twenty five years while retaining residency in Canada.

I have also held multiple USA work permits under NAFTA because of my engineering background.
The IRS became very agressive about me agreeing to accept a green card ( bit of a switch I know but they actually tried to pressure me into American residency).
And yes I had to file for taxes with the IRS.
And yes I ended up paying American taxes.
And that was when I stopped accepting consulting work in the US.

All holders of a US passport must file American taxes.
All income must be reported.... and all means ALL.
That is American law.

In Canada if you retain residency you report all income.
ALL income.

If you choose to go non- resident and retain your Canadian passport you may be temporarily excempted from filing Canadian taxes.
I would recommend getting advice from a lawyer expierenced in international tax law as well as an accountant skilled in the same field.
However upon your return and resumption of Canadian residency once again you will be required to report and pay taxes on all income and that of course would include on all interest, dividends or capital gains of any foreign assets.

Most countries now have tax treaties and will happily report your foreign earnings to the Canadian or American tax authorities.
The last few holdouts are countries like Yemen, Iran, Iraq and so forth.

Going non- res on a Canadian or American passport and dodging taxes is a very tricky bit of business.
I always paid every penny due on my foreign income and assets.
But because of my travels and associations I know a fair bit about trying to dodge taxes internationally.

If someone is interested in how that works I can lay out the basics on another post.
Trex

 

[Ocean Breeze]

Is this to apply to Canadians only?? or folks from each country on the planet that have worked, work in the US??? How do folks from other nations feel about this?? (Assuming they have dual citizenship with the US and their home country)

Is the IRS asking banks from other nations to report on dual citizens as well??

The US is certainly getting desperate. Although It makes sense to pay taxes if you work in the US and have dual citizenship. Just as if you work in the UK and other areas...of the world , you need to comply to their laws.

...........what are the tax laws in Canada for Americans (and others) with dual citizenships working in Canada??

 

[EagleSmack]

Is this to apply to Canadians only?? or folks from each country on the planet that have worked, work in the US??? How do folks from other nations feel about this?? (Assuming they have dual citizenship with the US and their home country)

Is the IRS asking banks from other nations to report on dual citizens as well??

The US is certainly getting desperate. Although It makes sense to pay taxes if you work in the US and have dual citizenship. Just as if you work in the UK and other areas...of the world , you need to comply to their laws.

...........what are the tax laws in Canada for Americans (and others) with dual citizenships working in Canada??

Yup OB... Canadians only. They're out to get ya.


Follow along would you and do your own research.

 

[Machjo]

A citizen of a nation should be subject to rules, including taxation, by that nation, no matter where you are resident.

So you expect a chinese national residing in Canada to be subject to Chinese rather than Canadian laws? Think about it.

 

[JLM]

So you expect a chinese national residing in Canada to be subject to Chinese rather than Canadian laws? Think about it.

A person should only be taxed by countries from which he is deriving income. THAT is a no brainer. :smile:

A person should only be taxed by countries from which he is deriving income. THAT is a no brainer. :smile:

I'm going to amend that to "income or benefits".