The IRS recently released FAQs concerning its amnesty programs for noncompliant taxpayers who want to become compliant with their U.S. tax filing obligations. The FAQ for the nonresident flavor of the new streamlined amnesty program, SFOP, is particularly troubling for snowbirds (i.e., folks, particularly Canadians) who migrate to the U.S. each year but who have not filed forms 1040 for the three-year period for which tax returns must be filed under streamlined. If these snowbirds spend more than just 35 days (36 in a leap year) in the U.S. during each of these three years, they are ineligible for streamlined and must either use OVDP or file without the protection of an IRS amnesty program to get compliant. Before the FAQ, there was an interpretation of the streamlined procedures' "non-residency requirement" that qualified these nonfiler snowbirds under streamlined using section 911 of the Code. The result is troubling for those affected.Follow the link above for the full blog entry.
Wednesday, October 22, 2014
Blog on the Disqualification of Some Canadian "Snowbirds" from Streamlined Treatment (10/22/14)
Moodys Gartner Tax Law has published a blog entry, here, on the Canadian Snowbird trap in the Streamlined procedures. The following summary was provided: