Don’t panic, American citizens in Canada: The IRS is not coming to seize your house

One million American citizens in Canada face double tax troubles. Max Reed explores these challenges in a spring series.

This spring, a new tax law hangs heavy over U.S. citizens who call Canada home.

The U.S. Foreign Account Tax Compliance Act, or FATCA, has generated a lot of attention because, as of July 1, 2014, it requires Canadian financial institutions to send information about their U.S. account holders to the Canada Revenue Agency, who will hand the info off to the Internal Revenue Service.

It’s all part of an IRS crackdown on foreign tax evaders that began in 2011. FATCA, understandably, frightens people.

Americans in Canada (U.S. citizens, certain U.S. green card holders, those who have a U.S. address) have always been expected to file, but FATCA makes these tax obligations more pressing.

This series will try to enlighten U.S. account holders and help them understand the implications in this post-FATCA world.

Don’t panic. The IRS is not coming to seize your house.