If you’re a U.S. physician living and working here in Canada, you might think Uncle Sam isn’t much of a concern. But what about the IRS? Can they force you to pay taxes to a country where you’re no longer living?
More than one million U.S. citizens living in Canada are facing double tax troubles because of the recent IRS crackdown. Don’t panic, however, because Canadian law has a firewall to help U.S. citizens living in Canada.
If you aren’t up to date on your U.S. taxes and the IRS gets wind of the fact that you sold a home, they may come after you for U.S. taxes as a result of the house sale.
As part of the Canada-U.S. Tax Treaty, the Canada Revenue Agency won’t help the IRS shake you down for the money as long as you were a Canadian citizen at the time the debt came up.
The IRS also can’t seize any of your Canadian assets without first getting permission from a Canadian court — and there’s a precedent that will protect you.