The United States imposes worldwide taxation on people who are US citizens and residents (Green Card or substantial presence) even if they live outside the United States ANDA are “tax residents” of other countries!
To understand the problem, read the post referenced in the following tweet:
Letter of a Canadian businessman to his son on the occasion of the son's high school graduation http://t.co/XYMZdW3m … #americansabroad
— US Taxation Abroad (@TaxationAbroad) September 14, 2012
The United States requires U.S. persons (citizens, green card holders and those who spend too much time in the U.S.) to file U.S. tax returns. This includes many Canadian citizens who also have the status of being U.S. persons.
The reality is that that many U.S. persons have not known or understood this. Therefore, many U.S. persons abroad are NOT tax compliant. This is becoming a bigger issue because:
1. FATCA (if imposed) will over time result in the identification of U.S. persons
2. When U.S. passports are renewed the information is turned over to the IRS.
This is something you should know.
In any event, here are two kinds of tax sites for U.S. citizens abroad:
Those who have been filing their U.S. taxes and just want help with tax return preparation – USTaxPrep.CA
Those who have NOT been filing their U.S. taxes or seek a more detailed understanding of the life of U.S. citizens abroad – USTaxationAbroad.ca
List of “quick and dirty” tax issues for U.S. persons abroad
Those wishing to “flag” specific tax issues for Americans abroad may want to check this page.