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joyfulguy

Important note for U.S. Cirizens resident abroad

joyfulguy
12 years ago

Our national radio had a program this morning reporting on a rule that requires U.S. citizens resident abroad to notify their government (I.R.S.) of bank accounts which they have abroad containing over $10,000.

Something about there being a tax? fee? of 5%.

The radio story says that houses (property?) are exempt. I don't know about assets such as stocks, bonds, mutual funds, etc.

The rule has been there for years, it appears, but few know of it ... a local office of one of our Members of Parliament (federal) says since 1913.

There's a deadline of tomorrow (Fri. Sept. 9) to report to avoid a major penalty ... of something like 25% of the amount. I don't know about stocks, bonds, mutual funds, etc. ... and I assume that cash value of life insurance might be included.

An accountant in Toronto says that they've been run off of their feet this summer, complying.

And one person who has lived in Canada almost all of his life, all of his working life, says that his accountants say that it's quite complicated and needs an accountant/lawyer to deal with ... at a cost of thousands.

I called son to tell him of it ... and he's in a bit of a tizzy.

When I called the MPs office, I said that my ex- had never earned a dollar in the U.S. following university ... she came to Korea to marry me and we lived there, on my Canadian salary, for 10 years, then with me as a clergyperson in Canada for a while, then she was second head for a while and head of food service in a significant hospital for 20 years and took early retirement when there was a question of closing it or another nearby (figuring that taking golden handshake was better than settling for a payout on closure).

But ... that she was lucky, in this situation ... having died 6 years ago (or was it 7?).

They said that they didn't know whether it applied to estates.

And, since children of U.S. citizens are eligible for citizenship, the rule applies to them, even if they were born elsewhere and never lived in the U.S.

My son (born in Korea, resident of Korea or Canada throughout his life) has dual citizenship, as does daughter, born in Canada and resident here through most of her life, livelihood here for a number of years and in the U.S. for several years on two occasions, including now.

Sorry to rain on your parade, if you are affected and have not qualified.

ole joyful

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