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.
Doing the impossible
1 day ago