Anonymous
Anonymous asked in Politics & GovernmentImmigration · 3 weeks ago

If the United States asked Canada to extradite US citizens living in Canada to the US for tax non-compliance, would Canada cooperate?

For example, I was born in the US to two non-US citizen parents who are both Canadian citizens. I understand that because I was born south of the border, I am automatically a US citizen and therefore am obligated to file tax returns, FBARs and information returns annually. I do not do this, as I see no need to since I don't have any US assets and never plan to live in the US. Renunciation costs an enormous amount of money and wait times are ridiculous.

Do you think if the United States one day asked Canada (or any other country that is an ally of the US, for that matter) to arrest, extradite, or force into bankruptcy, 'US persons' living in Canada to the US for tax non-compliance would Canada cooperate?

Update:

Btw I've always lived in Canada and am a Canadian citizen paying Canadian taxes.

5 Answers

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  • 3 weeks ago

    To effect an extradition, ,the offence has to also be an offence in Canada.  Not paying American taxes when you do not live there is not seen as an offence in Canada, so, dual citizens are safe in Canada.

  • 3 weeks ago

    Yes, the US and Canada have extradition treaties - but they don't cover failure to report taxes. 

  • 3 weeks ago

    No, neither Canada nor any other civilized country would extradite a citizen for failure to file a US tax return. Nor would the US press such charges. This would only become an issue if you either (1) decide to live in the United States, or (2) become a celebrity (think Justin Bieber) who makes millions a year.

  • 3 weeks ago

    IRS agents are in most US embassies & consulates. With federal fraud charges (yes, they can charge you so that Canadian authorities will extradite you), or attaching your assets for taxes, interest, penalties, etc. they gotcha. Since you are a US citizen, they can notify your Canadian bank of your US citizenship & the bank's resultant obligations under US law. So your bank will happy to cooperate rather than have the bank's US assets held. Stop being an ostrich. Square up your US tax reporting obligations so you can renounce. Ironically, if you are an ordinary wage-earner like most people, you probably never owed US income taxes by the time you used the Foreign Earned Income Credit (which exempts EARNED income - salary/wages - only) within each year's annual earning limits, plus credit for the income taxes you pay Canada. Now you have penalties to pay, possible prison.

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  • Foofa
    Lv 7
    3 weeks ago

    There are US citizens living in the US who have outstanding tax returns and no one's arresting them unless they're Wesley Snipes level offenders. Because you work in Canada and that nation has a reciprocal tax agreement with the US you don't actually owe the IRS any money. So all you're really "guilty" of is not turning in the paperwork to say you owe nothing. People in the US who don't owe taxes here quite often don't bother filing returns. 

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