Thursday, September 8, 2011 | Categories: Episodes
Part Two of The Current
IRS & U.S. Tax Law - Maury Williams & Bob
"No taxation without representation" has been a rallying cry among Americans ... from the Boston Tea Party right up to the current Tea Party. But according to U.S. law, the Internal Revenue Service is permitted to dip into the pockets of about a million Americans living in Canada, many of whom haven't voted in an American election in their lives ... choosing instead to live, work and pay taxes here in Canada.
Despite that, they are required by law to disclose to the IRS any bank holdings over 10,000 dollars and they may face a penalty of up to 10,000 dollars per year, per account if they don't. There was a time when the IRS didn't appear to be all that serious about enforcing the law.
But now, that time is gone. The IRS has given Americans living in Canada until tomorrow to file something called an Offshore Voluntary Disclosure Initiative form. Those who do, hope to walk away with a smaller penalty. Those who don't ... are on their own.
Maury Williams has decided to take that offer. He's an American-born Canadian citizen who teaches history at the University of British Columbia. He has lived in Canada since 1973 and he was in Kelowna.
And Bob has decided not to file the disclosure form. We're withholding his last name because he fears the IRS might try to track him down. But we can tell you that Bob came to Canada in 1970 and became a Canadian citizen in 1975.
IRS & U.S. Tax Law - Christine Perry
For some clarity on what's behind the IRS crackdown and how the law works when it comes to the Offshore Voluntary Disclosure Initiative, we were joined by Christine Perry. She is a cross border tax lawyer with the firm Keel Cottrelle and she was in our Toronto studio.
We did request an interview with the Internal Revenue Service, but that request went unanswered.
Other segments from today's show: