any exceptions for filing 1040's duals -10yrs in - david ingram expert US CANADA cross border non-resident income tax help and p

A non tax lawyer hinted that there may be exceptions or simplifications for dual citizens that are long term residents of Canada(>10years)who resided short term in the US under the tax treaty but he had no details.
I was born in the US, but my parents moved here when I was a young child, just turning 7. I have lived in Canada continuously since 1964 and I have no accounts or real property in the US. I have been filing full 1040's,8891's, T90's, without owing anything for years.

Are there any simplifications to full filing, are there any types of income that don't have to be reported, or anything else, either in the regulations, or in the IRA private rulings for people that are not "active" US citizens but are living as active citizens of Canada permanently with no intention of residing again in the US. Most information available is applicable to people going back or forth, or have real ties to the US.
(I got an error message using the form on the website so I am emailing this question directly)
david ingram replies:

No US ties or association are necessary, just US citizenship gets you the honour of having to file US tax returns for your whole life.

There are no exceptions for a US citizen and the craziest penalty I ever saw was a $10,000 penalty for failing to file a TDF 90 for a 105 year old lady who had not lived in the US for 50 years and  was in a North Vancouver old folks home and suffering from senility.  Her financial affairs were being looked after by a niece who lived in Holland and came to Canada two times a year to look after her aunt's affairs.

To their credit, Justice did cancel the penalty when i explained the circumstances but the accountant had filed a return showing $38,.000 of interest from the Royal Bank in Edgemont Village and checked off "NO" to question 7 on Schedule B.

You are stuck.  Even if you give up your citizenship to escape it, the IRS still demands 10 more years of tax returns and says that yo may not enter the US for the rest of your life.This was part of Pres Bill Clinton's Illegal Immigrant Bill of Sept 30, 1996.

It is too bad that you have not been able to use your citizenship with a cross border occupation of some sort.

You seem to be completing all of the forms.  the only one that might be missing is the 5471 if you are a 10% or more owner of a Canadian (or French or German for that matter) corporation.

As of Jan 1, 2009, the minimum fine for failure to file form 5471 is $10,000 for even being late.

The IRS is allowing up to Jan 1, 2009 to get old ones caught up.

You will / might get something more by going to and reading the Oct 93 newsletter on Dual citizenship and the Oct 1995 newsletter on the duties of a US citizen in Canada. 

These two newsletters are in the top left hand box on the front page.
In the second box down, you will find some information on what the US citizen or Green card holder living in Canada or any other country has to file with the US.  When it was written the 8891 form was not available  and should be added.

Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert income tax help, assistance, preparation, or consultation  in connection with personal or business affairs such as at If you forward this message, this disclaimer must be included."
David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico  family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority.



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