A comment at the Isaac Brock Society included the following:
On Oct. 18th, 2012 I applied at the Royal Bank to become a signature to my husbands direct investing account. The question of my birth place was on the application form and as always I advised I was born in the U.S. At the time I was unaware of FATCA.
During that meeting, via phone, I was advised by RBS Direct Investing that my RRSP account was frozen and I could no longer trade within that account. The individual I dealt with at RBC Direct Investing was a Senior Manager. My account would be frozen until such time as I completed a “w-9″ form which required a SSN which I have never had. I have made appts. twice at Toronto Consulate to apply for SSN but have cancelled as I am not sure it is the right move for me to make at this time.
I did write letters to the PM, Jim Flaherty and my MP….in fact, just mailed them yesterday regarding my situation and I did relay the issue with the Royal Bank.
My husband and I will be attending the meeting on June 15th ….bit of a distance for us but we will be there.
It should be self-evident, however, that such a result is absurd, and cannot have been intended.
Congress cannot possibly have meant to treat individuals who had long since relinquished their U.S. citizenship, and whose expatriations had always been respected for federal tax purposes, as if they had been citizens all along.
Undoubtedly, Code Sec. 877A was meant to apply solely to individuals that, on (or after) the date of enactment, were otherwise treated as citizens (or long-term residents) for federal tax purposes.
Any individual who took all steps required to successfully terminate citizenship for federal tax purposes, under the tax laws as in effect immediately prior to enactment of the 2008 Act, would not again need to relinquish U.S. citizenship and thus could not be within the intended scope of Code Sec 877A(g)(4).
Will the 2013 Canadian Federal Budget include some references to Canadians who the IRS defines as U.S. persons? As we all know the US is currently trying to get Canada to surrender part of its sovereignty by signing a FATCA IGA.