What Canadians need to know about the IRS’ potential crackdown on foreign property ownersSeptember 5, 2017 9:34 am
If you’re a Canadian who owns U.S. residential real estate, now may be a good time to ensure you are compliant with U.S. tax laws as the U.S. Internal Revenue Service may soon be cracking down on non-compliant foreign property owners as a result of a critical report issued last week by the Treasury Inspector General for Tax Administration (TIGTA).
TIGTA reports directly to the U.S. Treasury and is charged with providing independent oversight of IRS activities. Its report looked at property ownership by non-residents and concluded that “additional controls are needed to help ensure that non-resident alien individual property owners comply with tax laws.”
The report estimated that non-resident alien individuals’ investment in U.S. property increased from US$34.8 billion during the 12-month period ending March 2013 to US$43.5 billion during the 12-month period ending March 2016. The audit conducted by TIGTA was initiated to evaluate the IRS’s efforts in identifying and addressing non-resident alien individuals who should be paying tax on rental income of U.S. property.
Categorized in: The Vancouver Sun