Beware the taxman
Tax Change Alert Are you a Canadian Snowbird? Do you usually winter out in the United States? The IRS & CRA are now sharing information and closely tracking how much time you spend in the ...
Forum Discussion
joebedford wrote:
I just don't get why someone would limit their stay in the US to 120 days. To avoid filling out a 5-minute form? I don't get it.
It quite simple, if you have sufficient holdings within the US you might fail the test for being an exception to having a closer connection to the US.
If you stay year after year for more than 120 days then you will likely be required to file the 8840 form based upon the 3 year formula. Failing to do so could subject you to a fine of up to $10,000 according to US Customs & Immigration. Once you complete the 8840 form and the IRS determines that you have a closer connection to the US because of your holdings or physical residences then you could be subject to US taxation.
... Eric
