Passive Foreign Investment Companies (PFIC) and Canadian mutual funds 2

Why are PFIC rules important for holders of Canadian mutual fund? Many American citizens living or working in Canada have invested in Canadian mutual funds – likewise, many Canadians who subsequently moved to the United States retained their Canadian mutual funds holdings. They likely are unaware of the PFIC rules. Consequently many American taxpayers holding ...

Form 8891 – an obituary

Form 8891 – an obituary
History Before April 15, 2002, and despite the fact that tax deferral for RRSPs was provided by the US Canada tax treaty of September 26, 1980, RRSPs didn’t have specific forms, hence 3520s and 3520-As were used by the minority of taxpayers wanting to be compliant with the rules relating to having an interest in foreign trusts. To these, a form ...

Former IRS Head Miller Unsure if FATCA’s Benefits Outweigh Costs

Former acting IRS Commissioner Steven Miller on October 6 said that while he hopes the Foreign Account Tax Compliance Act leads to less offshore tax evasion, he’s not sure if the benefits of the law will outweigh its costs. “I can’t even say with conviction that I’m sure, looking strictly on a cost-benefit basis, that ...

FATCA ‘Tormenting’ Taxpayers, Olson Says

By the time lawmakers and taxpayers have figured out whether the Foreign Account Tax Compliance Act was worth the trouble, it might be too late to undo any damage, National Taxpayer Advocate Nina Olson said October 7. “However much I’ve tried to figure out what on earth [FATCA] means, and the consequences of it, I ...

The IRS makes it easier for RRSPs to be elected as tax-deferred under US law

Original source: IRS Simplifies Procedures for Favorable Tax Treatment on Canadian Retirement Plans and Annual Reporting Requirements IR-2014-97, Oct. 7, 2014 WASHINGTON ― The Internal Revenue Service today made it easier for taxpayers who hold interests in either of two popular Canadian retirement plans to get favorable U.S. tax treatment and took additional steps to simplify ...

Le Treasury Department rend la vie plus facile aux détenteurs de comptes épargne retraite canadiens

Résumé: Le Treasury Department rends automatique l’élection de différer l’imposition des REER et FERR en vertu de l’article XVIII (7) de la Convention fiscale entre les Etats-Unis et le Canada.   Les « US persons » ne sont généralement pas soumis à l’impôt sur le revenu aux États-Unis sur les comptes de retraite individuels (“IRA”) jusqu’à ce ...

The Treasury Department makes life easier for holders of Canadian retirement savings accounts

Summary: The Treasury Department automatically give the election to defer taxation of RRSPs and RRIFs under Article XVIII (7) of the Convention between the United States and Canada. If the beneficiary of an RRSP or RRIF is a US citizen or resident for tax purposes in the United States income deferral of tax on US ...

Renting Your Vacation Home

If you own a home in a vacation locale – whether it is your primary residence or a vacation home – and are considering renting it out to others, there are complicated tax rules, referred to as the “vacation home rental rules,” that you need to be aware of. Generally, the tax code breaks a ...

Besides FATCA, how would they find me? 1

Besides FATCA, how would they find me?
They could find you when you get or renew your US passport, which is required to enter the United States; The way it is supposed to work is that you are mandated to provide your US Social Security Number (SSN) when you apply for a passport. The Department of State then forwards your address and ...

FATCA & U.S. Expats in Mexico

FATCA is stirring a wave of confusion among U.S. expat communities around the world. As of this article, roughly 110 countries are either on-board with FATCA, or having active discussions with the United States. Mexico has signed FATCA agreement with the U.S. (as of November 4, 2013). Local banks will soon report account information of U.S. ...