The U.S. Department of Homeland Security is now tracking your
entrance to and exit from the U.S. by land, sea, and air?
If you are a non-immigrant alien (from a U.S. perspective), you
can now view the dates that you have entered and exited the U.S. on
the website below for U.S. Customs and Border Protection by
entering your name, date of birth, and passport details: https://i94.cbp.dhs.gov
The Foreign Account Tax Compliance Act (FATCA) is U.S.
legislation requiring certain non-U.S. entities (including Canadian
financial institutions) to report information to the U.S. Internal
Revenue Service (IRS) regarding accounts held by certain U.S.
persons. FATCA helps ensure that overseas (non-U.S., including
Canadian) income is reported by U.S. persons to the IRS. Enacted on
March 2010, FATCA became operational on July 1, 2014.
As a result of FATCA, in February 2014, Canada entered into an
intergovernmental agreement (IGA) with the U.S. to implement
FATCA's provisions. Effective as of June 19, 2014, Canadian
legislation to implement and ratify the IGA is now in force. As a
result of the IGA, entities in Canada that are required to report
information under FATCA will provide the information to the Canada
Revenue Agency (CRA), who will in turn provide the information to
If a Canadian entity fails to comply with the new legislation, a
30 per cent withholding tax may be levied on U.S. source payments
made to the Canadian entity. As well, penalties may apply to the
Canadian entity under the Canadian Income Tax Act.
Canadian entities should determine what their requirements are,
if any, under FATCA to report information about U.S. account
holders to the CRA. The legislation and supporting guidance is
complex; competent professional advice should be sought to assist
with understanding and complying with the legislation.
If you are one of the estimated one million U.S. citizens living
in Canada, consider if your U.S. personal income tax filings are up
to date. A U.S. citizen is required to file a U.S. personal income
tax return (and various other compliance documents) each year,
regardless of the fact that they may reside outside of the U.S. The
fact that the Canadian-resident U.S. citizen does not owe any tax
does not absolve the U.S. citizen from their U.S. filing
If you are a Canadian-resident U.S. citizen and have not yet
become compliant with respect to your U.S. personal tax filing
obligations, consider if now is the time to do so. The IRS offers a
streamlined program to encourage taxpayers to come forward and
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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