For more than two years, we’ve been covering the implementation of the Foreign Account Tax Compliance Act (FATCA) and all its implications. Well, the big day has arrived! FATCA takes effect on July 1st (on Canada Day, interestingly enough), and we’re catching you up on the good, the bad and the ugly by highlighting key coverage from our Press Room. We’re also waiting with bated breath to see how it all plays out…
In a nutshell, FATCA is the result of U.S. legislation designed to derail tax evasion by U.S. citizens and residents abroad and the international banking institutions in which they hold money. The Act is also intended to generate significant revenue by ensuring that the roughly 7 million Americans who live or work abroad become tax compliant with the Internal Revenue Service (IRS).
Without delay, here’s a roundup of everything you wanted to know about FATCA (but were afraid to ask):
- “FATCA—Forget About Trusting Canada Again?” includes some of my most recent (and candid) thoughts on the subject. This article discusses whether Canada had a choice in complying with the Act, the impact on clients, and how advisors can best guide their clients.
- Just in time for FATCA’s implementation, the I.R.S has launched a revised tax amnesty program that benefits Americans living in Canada.
- In our News to Note section, we highlighted this piece on the logistical nightmare that is FATCA compliance.
- One result of FATCA is that there are new rules for U.S. taxpayers holding mutual funds outside registered accounts. In this article, we look at the necessary forms to file and the consequences of this new rule.
- In this video clip, I give Globe and Mail’s Rob Carrick an update on the FATCA-related IRS crackdown on Americans who live and work in Canada but haven’t been filing their annual tax returns.
- In this article, my colleague John McCord discusses the importance of disclosing foreign-based accounts to the IRS if you’re an American expat—and how FATCA is behind it.
If you have questions or concerns about FATCA and its potential impact on you, the cross-border specialists at Cardinal Point Wealth Management are here to help.