Globe and Mail – Americans living in Canada: Beware that the IRS is watching you

We are very pleased to share that David Altro and Matt Altro were asked to prepare a special for The Globe and Mail, which was published on September 19, 2018. Their article titled “Americans living in Canada: Be aware that the IRS is watching you” provides insight into tax & estate planning considerations for Americans living in Canada. The article discusses key issues for Americans in Canada with respect to their principal residence, foreign accounts in the aggregate of $10,000, US gift & estate tax, term life insurance, and whole life insurance.

To read the article you can see it in part below, or click here to view it on The Globe and Mail’s website.

Americans living in Canada: Be aware that the IRS is watching you

David Altro and Matt Altro
The Globe and Mail
September 19, 2018

“The Star-Spangled Banner” is a heartfelt anthem that we’ve always loved hearing at professional sports games here in Canada. Who isn’t moved by words such as, “O say does that star-spangled banner yet wave / O’er the land of the free and the home of the brave?”

However, for the more than one million Americans living in Canada, the U.S. might not feel like the “land of the free.” After all, U.S. citizens living in Canada are still subject to U.S. tax law and must report their worldwide income to the Internal Revenue Service (IRS) as well as the Canada Revenue Agency (CRA). If you’re an American living in Canada, beware: the IRS is watching you.

The IRS enforces many different tax rules on U.S. citizens living abroad. We’ve written about five of the most common tax traps for U.S. citizens living in Canada before, but there are other issues to consider, too. Here are five additional cross-border tax issues for Americans living in Canada.