Taxpayer asks:
I have what may be a stupid question. I read your answer about FBAR and I was wondering whether you have to report bank accounts in Canada or does this just apply overseas?
Taxgirl says:
Oh Canada. Land of moose, maple syrup and an occasionally decent hockey team…
Actually, Canada has a pretty sound economy and its banking system is considered the “world’s best” according to a 2008 World Economic Forum report. And since it shares the world’s largest common border with the US, it’s not unlikely that many US taxpayers have investments in Canadian banks.
If you have investments in a Canadian bank, those investments are subject to the FBAR requirements. If you are a US citizen or resident and have control over an account or accounts with more than $10,000 at any time during the year, you need to report it.
So, yes, Canada counts for purposes of FBAR. Even if they do talk funny.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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Whaddayamean we talk funny, eh? By the way, those FBAR rules also apply to US expats living “abroad” in Canada, and they must also report registered accounts, like RRSP’s and RRIF’s. Now I’m going home to melt some ice for coffee.