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Staggering Number of Canadian Trusts Going Unreported

By Gerry W. Beyer

Canada

Over700,000 U.S. citizens reside in Canada, but according to the IRS, only 324returns were filed in 2010 reporting ownership in non-U.S. trusts.  These citizens may face a minimum of $10,000in penalties for failing to report distributions from many Canadian trustsconsidered to be foreign trusts in the U.S. 

Latetaxpayers can bring their filings current by partaking in an IRS voluntarydisclosure program, participating in the new Streamlined Filing Procedure, or makinga quiet disclosure.  However, the IRS iscracking down on quiet disclosures by closely examining those taxpayers thatdecide to become compliant by simply filing their late returns.

See Roy Berg & LisaHandfield, IRS Says Hundreds of Thousandsof US Citizens Are Not Reporting Canadian Trusts, Mondaq, May 10, 2013.

Posted in:
Income Tax and Trusts