Wendy McElroy has written an article over at the Ludwig von Mises Institute. Although her language is harsh, she makes some excellent points about the people the US’s tax policies are hitting with their scattershot approach, and speculates as to the reason that the US is implementing these kinds of policies now.
The IRS is making a worldwide push to squeeze money from Americans living abroad and from anyone who holds dual citizenship, whether they know it or not. It doesn’t matter if the “duals”want US status, have never set foot on US soil, or never conducted business with an American. It doesn’t matter if those targeted owe a single cent to the IRS. Unlike almost every other nation in the world, the United States requires citizens living abroad to file tax forms on the money they do not owe as well as to report foreign bank accounts or holdings such as stocks or RSSPs. The possible penalty for not reporting is $10,000 per “disclosed asset” per year.
Thus, Americans and dual citizens living in Canada (or elsewhere) who do not disclose their local checking account — now labeled by the IRS as “an illegal offshore account” — are liable for fines that stretch back ten years and might amount to $100,000.
Going after the college money earned by children born and raised in Canada (or elsewhere) is just one part of the international enforcement effort.