Today is Thanksgiving. Thinking of driving to the U.S. for Thanksgiving? Thinking of going for some “Black Friday” shopping? You might be interested in the following:
“OTTAWA — Shopping or other trips to the U.S., which have surged with the loonie’s rise to parity, could be cut short for thousands of Canadians by the IRS.
The approximately 70,000 Canadians living here who have dual U.S. citizenship, plus individuals with U.S. green cards, are for the first time facing tax scrutiny at the border, American tax lawyers are warning.
While it’s been known for years that the Canada Revenue Agency and the Internal Revenue Service exchange large amounts of information, it now appears that the IRS is also sharing information with Homeland Security, says Carol Fitzsimmons, with Buffalo-based law firm, Hodgson Russ LLP.
“A border crossing guard may have information readily available in his or her booth computer concerning a traveller’s unpaid U.S. tax liabilities and may bar the traveller’s entry into the United States,” she writes in the latest edition of the Canadian Tax Foundation’s publication Tax Highlights.
In addition, anecdotal evidence suggests that Homeland Security agents are becoming more sophisticated about U.S. tax laws and may ask travellers with a green card or non-resident U.S. citizens whether they have been filing U.S. tax returns, she says.”
Read the complete article here.