This article from Investment Executive discusses more lenient revisions to the IRS tax amnesty program, and Cardinal Point’s Terry Ritchie comments on the benefits for Americans living in Canada. The changes are designed to encourage expats to fulfill their tax filing obligations in the U.S. Revisions to the existing amnesty program include the elimination of both the $1,500 annual maximum for owed taxes and the risk questionnaire. In addition, taxpayers will be required to certify that their previous failure to comply was non-willful.
According to Ritchie, “The IRS has now recognized that the previous programs really did not fit the traditional American in Canada client who most advisors work with.” While tax agencies in general are never pleasant to deal with, Ritchie sees these changes as a welcome relief to Americans living in Canada and their tax professionals. The changes will take effect July 1, the same day that the U.S. Foreign Account Tax Compliance Act (FATCA) is launched. Ritchie adds, “With the full implementation of FATCA at the beginning of next month, Americans in Canada would be finding it more difficult to hide from the IRS.” Read the full article here.