Canadians obtaining US citizenship

Both of my Adult Children will be acquiring their first US
Passports (citizenship acquired thruough their Father) soon at
the ages of 30 and 28.  Will they have to file nil tax returns
from the time they were 18?  Their father was 33 when he received
his first US Passport and Social Security Card.
david ingram replies :
They are "derivative" US citizens and the general rule is that
they must file US taxes for 6 years back - i.e. they need to file
US 1040 returns from 2000 to 2005.
However, they are NOT nil returns.  Your husband and two children
MUST file returns reporting all their world income.  They will
not likely owe income tax because of exemptions and foreign tax
credits but they need to file full returns and include form 8891
to report internal earnings of their RRSP's if they have any and
also file forms T DF 90-22.1
--- The penalty for not filing the 8891 is 35% of the amount in
their RRSP accounts and 5% for every year they do not report it.
- The penalty for failing to file form T DF 90-22.1 is up to
$500,000 plus 5 years in jail.
Go to and have them read the October 1993
newsletter, the November 1993 newsletter, the Oct 1995 newsletter
(top left hand box),
Then have them read the US/Canada taxation section in the second
box down on the right hand side.
If you need help, you know where we are.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week  Vancouver (LA)
time -  (please do not fax or phone outside of those hours as
this is a home office)
email to taxman at
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 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."
Be ALERT,  the world needs more "lerts"
David Ingram gives expert income tax & immigration help to
non-resident Americans & Canadians from New York to California to
Saudi Arabia to Mexico to China or Chile - Cross border, dual
citizen - out of country investments are all handled with
competence & authority.
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