Should one give up US citizenshi[ quote to be a paying customer please -
Hi David,
I am distressed by reading your comments regarding
my possible future obligations to the IRS as a dual citizen. I
was born in BC to US parents, grew up in the States from age 4 to 33
and have been living back in BC for the past 19 years. I have a
small IRA (12,000 USD) in the US, which I opened 20 years ago and have not
added to since. I have no other US assets, nor have I earned
income there for 20 years. I have intermittently filed US income tax returns
over the years - never owed them anything due to foreign tax
credit. I have not filed for the past two years because
I changed accountants, I moved within BC and the new guy doesn't file
US returns. I have however, completed W8 forms with various
investment firms. I don't have a US passport nor do I receive any benefits from
the US. I never intend to reside in the US or seek employment
there. I have not voted since I left. However, my networth is
beginning to grow as is my income (earned and investment) and I do not want
Uncle Sam to view me as an opportunity to pay for the many unfunded liabilities
they have promised the aging babyboomers (I am one of those
boomers)
I am wondering whether I should relinquish my US
citizenship and whether I can consult with you or would you recommend
someone else to discuss my situation in detail? What fees might I expect?
I am in the Vancouver area. I want to know what potential ramifications there
might be from a legal and tax perspective of relinquishing. I imagine
I would first collapse my IRA - pay the tax and then attend the US
Consulate, complete a questionnaire, and take an oath, etc. but I wonder
about any potentially negative implications? Do I need to file the last 2
years taxes and next year's if I collapse my IRA?
I obtained US citizenship for my 10 and 12 year old
daughters who were born in Canada by registering them for the US citizens born
abroad program - so now they have dual citizenship. What do I do for them as I
don't want them to be obliged to have to declare their world income to the IRS
into perpetuity?
Would you please provide us a quote for back
filing my US tax returns for the last 2 years, I have a copy of my CAD
returns and don't owe $ to the IRS? I am a xxxxxxxxxxxxxxx employed by
xxxxxxxxxx,
I own 3 rental properties in the Lower
Mainland and had some stock investments (jointly with my wife) - all
of our income has been earned in Canada and I have no ties to the US
(except the IRA mentioned above). We are also wondering what it might cost to
have you be our accountant to file our CAD and US taxes for 2007 and discuss
relinquishing the US citizenship?
Regards,
-----------------------------------------------------------------------------------------
david ingram replies:
Do NOT expect replies as fast as this in the
future. It was sent to an address that I do NOT answer questions from as
well. I have over 700 unanswered email questions that arrived before
yours.
However, this arrived as i was cleaning up my
files so here goes.
Giving up your US citizenship to avoid income tax
filing results in your being banned from the US in perpetuity. It is
usually not a good idea an dfewer than 50 people a year actually go through the
process because of the ramifications.
In addition, you trigger a 'departure' tax when you
do and the rules are that you are supposed to keep on filin US returns for 10
more years.
What you are talking about is filing two
returns. More work, and more cost but rarely more tax. people in 43
states and the Province of Quebec file two physical returns and it does not
kill them.
You should likely come and see me for a $400.00
hour.
In general, for a current year, we charge $800 to
$2,800 for a US / Canadian return. If you have three rentals and capital
gains, you are likely in the $1,500 range.
Doing the two old ones at this time of
year wouold likely be under $1,000 unless you have multi stock trasdes,
etc.
and you must do them. Not filing
form TDF 90-22.1 is now a stated minimum $10,000 penalty. Not filing
form 8891 for your RRSP is a fine of 35% of the prinicipal plus 5% for
every year not reported.
And, cheer up. In another 9 years, you
qualify for US social Security.
----------------------------------------
David Ingram wrote:
It is
very unlikely that blind or unexpected email to me will be answered. I
receive anywhere from 100 to 700 unsolicited emails a day and usually
answer anywhere from 2 to 20 if they are not from existing clients.
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However, I
regularly search for the words"PAYING CUSTOMER" and always answer them first if
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since June 16th (124 days), my 'spammed out' box has 34,939 unread messages, my
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Therefore, if an email is not answered in 24 to 36 hours, it is lost in space. You can try and resend it but if important AND YOU TRULY WANT OR NEED AN ANSWER, you will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321. expert US Canada Canadian American Mexican Income Tax help.
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This is not intended to be definitive but in general I am quoting
$900 to $2,900 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interest slips and you
lived in one country only (but were filing both countries) - no self employment
or rentals or capital gains - you did not move into or out of the country in
this year.
$1,100 would be the same with one rental
$1,300 would be the same with one business no rental
$1,300 would be the minimum with a move in or out of the country. These
are complicated because of the back and forth foreign tax credits. - The IRS
says a foreign tax credit takes 1 hour and 53 minutes.
$1,600 would be the minimum with a rental or two in the country you do
not live in or a rental and a business and foreign tax credits no move in
or out
$1,700 would be for two people with income from two countries
$2,900 would be all of the above and you moved in and out of the
country.
This is just a guideline for US / Canadian returns
We
will still prepare Canadian only (lives in Canada, no US connection period)
with two or three slips and no capital gains, etc. for $175.00
up.
With a Rental for $375
A
Business for $375 - Rental and business likely $500
And an American only (lives in the US with no Canadian income or filing
period) with about the same things in the same range with a little bit more if
there is a state return.
Moving in or out of the country or part year earnings in the US will
ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that
when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18
RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales) are likely $50.00 for the first and $20.00
each after that.
Catch - up returns for the US where we use the Canadian return as a guide will be $150 to $500.00 depending upon numbers of bank accounts, RRSP's, existence of rental houses, etc.
Just a guideline not etched in stone.
This from
"ask an income trusts tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. David
Ingram deals on a daily basis with expatriate tax returns with multi
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