Financial Institutions will be required to report accounts held by US citizens to the IRS

By: Lawrence & Associates, Accounting, Bookkeeping & Taxes  02-10-2011
Keywords: Assets in Canadian bank accounts

New Federal Legislation in the US now requires Canadian Banks and other Foreign Financial Institutions to reveal the names of American account holders.  This legislation is called the Foreign Account Tax Compliance Act or FATCA and will be effective in 2013.  Financial Institutions that do not comply will be subject to a 30% withholding tax on all US source income.  US citizens that refuses will also be subject to the 30% withholding tax.  Financial institutions have to enter into agreements with the IRS to do "due diligence" in identifying US account holders and the IRS may do audits.

Please see Lawremne & Associates to be compliant before FATCA takes effect.

Keywords: Assets in Canadian bank accounts

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