Hi, my name is Alan Madden. I'm a chartered accountant and a tax expert in the Mississauga, Toronto, and Oakville regions of Ontario, Canada. Today's short video is called "Filing Back Tax Returns for US Citizens Living in Canada." Before I start, I'll tell you why it's so important that you need to watch this video. US citizens must file a US tax return every single year and report their worldwide income to the IRS. They must also file an FBAR, which is a report of their bank and financial accounts held overseas. Failure to file could result in a penalty of up to $10,000 per year per account. In fact, the IRS has so much power that it could require the Canada Revenue Agency to disclose your personal financial information to them. Now that you know why it's so important, how do you become in compliance? There are three ways that you can become compliant with the IRS. The first way is through the streamlined process. The streamlined process allows full compliance without any penalties. With the streamlined process, you must file six years of past FBARs and three years of past US tax returns, plus the current year. To qualify for this program, you must meet four conditions. The first condition is that you are a US citizen or a green card holder. The second condition is that you have not lived in the US since January 1st, 2009. The third condition is that you have not filed a US tax return or an FBAR since 2008. The fourth condition is that you are a low compliance risk. The IRS considers you a low compliance risk if your tax returns are fairly simple and if you do not have a significant amount of tax owing to the IRS....
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Video instructions and help with filling out and completing Can Form 8854 Disclosure
