Re:Why expat Americans are giving up their passports
by tbirdx on Thursday February 11, 2016 @08:04AM
(#11079845)
It is even worse for US Persons in Canada, many of whom have never even been a US resident in their entire life. The reason is our tax treaty... If you file in Canada, you're good. At least that is how it was. Now they are going after these people because capital gains are exempted from this aspect of the treaty so they think they are compliant by having filed in Canada, but then find out a house the sold 10-20 years ago should have been declared even if they have never had to file US taxes before.
Re:Why expat Americans are giving up their passports
by bespoke_engnr on Wednesday February 10, 2016 @06:53AM
(#11072119)
Ahh, thanks for the explanation (and the link). Much appreciated.
Later the rules changed, and they had to file taxes. Those who didn't know about the change ended up having to pay a big fine.
Lately, a new requirement was the need to file FBAR forms for every foreign bank accound and security: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Emplo...
Many people didn't know about the new requirement, and they had to pay big fines.
What will be the next new requirement that startles people who don't have any contact with the country? No one knows. That is the risk, the uncertainty that there might be a requirement that you don't even know about...