U.S. immigrants bring tax troubles

In 2010, the U.S. Congress promised it would make major changes, effective 2012. Halfway through that year, Congress – and the Federal agencies it oversees – has kept its promise.

By Staff | July 23, 2012 | Last updated on September 15, 2023

2 min read

Recent statistics find the longtime trend of Canadians going South to find work has reversed. In fact, the Canadian government reports the number of Americans applying for temporary work visas doubled between 2008 and 2010.

In light of that, it’s no surprise the U.S. Internal Revenue Service has redoubled efforts to go after Americans living and working abroad to ensure they do their part to pay down the growing U.S. budget deficit.

Americans living here also need to keep up with U.S. tax obligations if they want to collect Social Security cheques after they regire; and, all totalled, recent changes mean advisors with U.S.-born clients must work harder to keep clients on the straight and narrow.

Among recent IRS changes is a filter over current U.S. withholding rules: the Foreign Account Tax Compliance Act. It requires all Canadian financial institutions to apply a 30% withholding tax to all U.S. clients on payments, including foreign financial institutions and non-financial foreign entities.

Read: U.S. stands firm on tax law changes

There’s more. Earlier this year, the U.S. tax collection agency announced Americans abroad who try to game the system could face additional penalties, including being denied entry into the U.S.

Here are some stories to get you up to speed on key tax issues for your U.S. clients:

IRS offers tax amnesty to Americans in Canada

Tax laws chasing funds across borders

New U.S. tax rule fuels frustration

U.S. tax law requires strategic planning

Does your client have U.S. tax risk?

Tax cheats beware

IFIC seeks changes to FATCA

Time to talk tax

Ask clients about cross-border activities

Cut U.S. tax ties

Tax tips for cross border clients