Tag Archives: IRS

American citizens who live in Canada face special tax challenges. A new IRS announcement has detailed the specific ways that this group can get at least some tax relief. These Americans must file a tax return each year with the Internal Revenue Service. For more than a decade, the situation has been a mess, with poor communication between the tax agency and the state department. At last, the U.S. government has decided to get serious about enforcing its own tax policy abroad. Tax relief for U.S. citizens who live in Canada has arrived, in the form of a new IRS policy which purports to forgive any late-filing penalties if you owe no tax. Oddly, the U.S. is one of the very few nations in the free world that requires its citizens who live abroad to pay income tax on money they earn outside of the country. Continue reading