U.S. tax crackdown hits Canadian residents

Here's an informative article for US expats in Canada, from The Globe and Mail. As people in the comment section point out, it's not a change of tax policy on the part of the IRS. What's notable is this part, particularly what I've bolded:

Starting in 2013, the IRS will require financial institutions outside the United States to disclose all accounts held by current and former U.S. citizens and green-card holders. They will likely have to file years of U.S. tax returns and detailed annual account disclosure. Finance Minister Jim Flaherty said Friday that Canada is not a tax haven and that the U.S. Foreign Account Tax Compliance Act will place an onerous burden on Canadian financial institutions.


I have tried to stay in compliance with IRS requirements to the best of my ability since we've been expats. Now I'm hoping the Canadian banks we use won't mind keeping us on as clients if they need to report every account we have to the IRS.

Applying for Canadian citizenship

We've been here long enough now that we are eligible to apply for Canadian citizenship! Now before anyone freaks out, we are absolutely not giving up our American citizenship. The US and Canada both allow their citizens to have dual citizenship. Having Canadian citizenship will mean we're eligible to vote in the country where we live and work. And unlike permanent residency, citizenship cannot be lost.

As I did with our journey to permanent residency, I will document this process here, for those who wish to know what it entails.

*The first thing to do is figure out if you're eligible to apply for citizenship. The CIC website has information here to help you determine that. You need to be a permanent resident already, and meet the residence requirement. We haven't actually been permanent residents long enough, however, the time when we were living here under Eric's work permit counts half-time. They provide a residence calculator which tells you when you're eligible to apply. You have to list all the dates you were gone from Canada for work or vacation as well. If you know you're going to eventually apply for citizenship, it's easier to keep track of this as you go.

*When you're ready to apply, you can download and print the application forms and instructions from the CIC website. Each adult and child submits a separate application. For those who have applied for permanent residency, take heart! The citizenship application is only four pages long!

*Use the document checklist, and include copies of the various documents they want. No need to get anything notarized! We have to send in copies of our Confirmation of Permanent Residence form, Permanent Residency cards, US passports, and Saskatchewan Health cards. If you're applying on behalf of a child under 18, you also need to send a copy of the birth certificate.

*Have citizenship photos taken, using the specifications given in the instructions.

*Pay the fee, either at a bank or online with a credit card. Enclose the receipt. It's $200 per adult and $100 per child. Again, this is significantly cheaper than the permanent residency fees.

*Send to the Case Processing Centre in Nova Scotia, and hope for the best!

Introverted Parenting

Fascinating blog series here.