US Expats In Canada Get Extended IRS Deadline

The IRS has pushed back the deadline for US Expats in Canada to submit their tax information until September 9th

London, UK (Pryce Warner International) September 1st, 2011 – In the wake of Hurricane Irene, US Expats in Canada will now get roughly an extra month to return their tax information.

The original deadline was Wednesday though the exceptional circumstances recently have required the IRS to push back the deadline.

US citizens in Canada are liable to face penalties for not disclosing their foreign account information to the IRS regardless of whether or not they earn any income from US sources.

Despite this law having been around for many years, many US Expats remain unaware that if they do not submit their financial information they can receive a penalty.

Recent changes to the law now mean that even those who meet the deadline can face penalties. Expats that have filed tax returns with information on their foreign accounts in the past will not receive penalties but those that have not could face a charge of up to 25% of the highest amount of their holdings between 2003-2011.

However, some Expats can may only receive a reduced penalty. They would be eligible for this if their taxes are up-to-date in their country of residence, file returns to the IRS by September the 9th that are in compliance with the eight-year disclosure requirement and also have less than $10 000 in US based income every year.

David Retikin, an Investment Analyst with Pryce Warner International, a Financial Services Provider for Expats, commented: “Considering the devastating impact of Hurricane Irene, it seems only fair that Expats potentially affected should receive more time to file their tax returns. US Expats around the world however should always be aware of the rules regarding disclosure of foreign accounts. That so many remain unaware of these rules highlights why it is so important that anyone moving abroad consult independent financial advisors to ensure that all aspects of their taxes are handled comprehensively.”

Commentary by David Retikin for Pryce Warner International Group. Pryce Warner International Group provide Overseas Asset and Investment Management as well as QROPS & QNUPS Overseas Pensions.

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By Aneil Fatania
Financial Editor
Pryce Warner International Group
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