US CITIZEN LIVING IN CANADA WITH SPOUSE

[DEO]

TP left the U.S. about 18 years ago and migrate to Canada to live with her spouse. Since then she has not given up her status in the US, neither has she filed any taxes.

She was filing Canadian taxes jointly with her spouse since she started living there.

What taxes would she be liable for in the US since she has not given up her green card?

Your input is highly appreciated.

 

Deo

[Catherine]

US citizens/permanent residents are required to file tax returns in the US every year on worldwide income.  Yes, there are exclusions, yes there are special provisions when the spouse is not and never has been a US resident subject to US taxation.  FBAR requirements as well on ANY account she is signatory on or has a financial interest in.  Those requirements do NOT go away and must be addressed.  The streamlined disclosure for FBAR might be helpful in this instance.  But there are still the prior-year returns. 

But there are also ramifications in the Canadian tax system, and I recommend you contact Tim Parris in Ottawa who is a specialist in US-Canadian taxation issues.  I have an (old) phone number for him in Ottawa - no idea if it's still good - that I can send you by PM if you wish.  He is also on facebook and linkedin - you could look there where there may be more recent contact info.