Dual Citizenship
David, my son is resident of Los Angeles - has lived in the USA for past 20 years or so - holds a valid green card is self employed and holds a valid Canadian passport He is wishing to secure US citizenship and continue to hold his Canadian citizenship Can this be done - how and where would he apply and are there any current tax issues he should be aware - all of his present income is earned in the US Would appreciate your comment Thanks -----------------------------------
david ingram replies:
There is no restriction on his having dual citizenship. goto www.centa.com and read my 12 pages on dual citizenship in the October 1993 newsletter in the top left hand box.
He can find all the applications for US citizenship etc at:
http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=ce2b2cd1f7e9e010VgnVCM1000000ecd190aRCRD&vgnextchannel=96719c7755cb9010VgnVCM10000045f3d6a1RCRD
There are no more tax issues as a citizen than with a green card.
However, if he did decide to leave the US and come back to Canada for a few years and then return to the US, his re-entry is guaranteed as a citiane and he could lose the green card if away too long without filling in an !-131 each year to try and keep the green card alive.
The only disadvantage would be that he will have to file a US tax return for the rest of his life, even if he returns to Canada full time.
-----------------------------------------------------------------------
He has a big decision to make.
I made a similar one this evening. I am giving back a major tax return because it is not the kind of return that I like doing. Even though I have the time, etc., to finish it 'now', I do not want to do it or any like it next year so I would be doing the client a disservice to finish it this year. She should be dealing with someone who wants to do this tyoe of return year after year. Thew return by the way involved a US / Canadian citizen with two Canadian companies and involved the preparation of two 5471 forms. These forms require the US citizen to report the intrernal figures for a foreign tax return on their personal return. The penalty for failure to file is $10,000 for the first 90 days and $10,000 every 30 days thereafter to a max of $50,000 per shareholder per year.
It was an epiphinal moment and I think it is the same kind of realization that a lot of people come to when deciding to become a US or a Canadian citizen.
david ingram replies:
There is no restriction on his having dual citizenship. goto www.centa.com and read my 12 pages on dual citizenship in the October 1993 newsletter in the top left hand box.
He can find all the applications for US citizenship etc at:
http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=ce2b2cd1f7e9e010VgnVCM1000000ecd190aRCRD&vgnextchannel=96719c7755cb9010VgnVCM10000045f3d6a1RCRD
There are no more tax issues as a citizen than with a green card.
However, if he did decide to leave the US and come back to Canada for a few years and then return to the US, his re-entry is guaranteed as a citiane and he could lose the green card if away too long without filling in an !-131 each year to try and keep the green card alive.
The only disadvantage would be that he will have to file a US tax return for the rest of his life, even if he returns to Canada full time.
-----------------------------------------------------------------------
He has a big decision to make.
I made a similar one this evening. I am giving back a major tax return because it is not the kind of return that I like doing. Even though I have the time, etc., to finish it 'now', I do not want to do it or any like it next year so I would be doing the client a disservice to finish it this year. She should be dealing with someone who wants to do this tyoe of return year after year. Thew return by the way involved a US / Canadian citizen with two Canadian companies and involved the preparation of two 5471 forms. These forms require the US citizen to report the intrernal figures for a foreign tax return on their personal return. The penalty for failure to file is $10,000 for the first 90 days and $10,000 every 30 days thereafter to a max of $50,000 per shareholder per year.
It was an epiphinal moment and I think it is the same kind of realization that a lot of people come to when deciding to become a US or a Canadian citizen.
What's Related