+34
Ottawa warns Canadians, especially snowbirds, to expect extra scrutiny when travelling to the United States, including a new April 2025 registration requirement and ongoing tax information sharing concerns.
Ottawa continues to warn Canadians to expect extra scrutiny when travelling to the United States. That includes the estimated one million retirees, known as snowbirds, who flock to warmer states like Florida and Arizona each winter.
New Registration Requirements For Snowbirds
According to the Canadian Snowbird Association, that number has dwindled by 15 per cent to 20 per cent since the United States turned hostile to Canada. Those still making the trek should be aware that as of April 2025, a new rule from Washington requires Canadians who spend 30 days or more in the United States to register with the Department of Homeland Security through an Alien Registration Form.
Not registering, or failure to provide proof of registration, could result in fines or even jail time. There is no fee to register, but the process could require indirect costs and advance planning. U.S. customs agents have the authority to search phones and electronic devices at border crossings. A 2014 information sharing agreement between the Canada Revenue Agency and the U.S. Internal Revenue Service could have already exposed more sensitive personal information.
The tax treaty attempts to determine which side of the border Canadians fall on for tax purposes. It uses a complicated substantial presence formula that gives the IRS access to personal information including the location of their permanent home, family members, driver's license and business activities. Personal information available to U.S. tax authorities could also include where they vote and social, political, cultural or religious affiliations. In 2016, Canada's Privacy Commissioner expressed concern about this sharing.
Privacy Concerns Regarding Data Sharing
The privacy watchdog recommended that the CRA notify impacted individuals when and why their data is provided to the IRS. Under the Privacy Act, general consent is required for the disclosure of personal information, but exemptions allow disclosures without consent. The Privacy Commissioner says Canadians can contact the CRA directly to find out what information has been shared with U.S. authorities.
Under the current agreement, snowbirds who spend more than 182 days in the U.S., based on a 3-year rolling average, can be taxed as U.S. citizens. Those who fall under the IRS 183-day count and are deemed not substantially present would not be obliged to pay U.S. tax.
However, they must file a Closer Connection Exemption Statement, form 8840, with the IRS to establish they are more closely connected to Canada. Since the tax pact was penned, a growing number of Canadians and even their advisors have been blindsided by unexpected tax bills, penalties, or worse from the IRS.
Risks Of Illegal Alien Status For Canadians
Kim Moody, CEO of Moodys Tax in Calgary, says such concerns get real for Canadian snowbirds who might have U.S. tax and filing obligations that are not up to date. If you spend too much time in the States without proper immigration status, you're considered to be an illegal alien, Moody says. If you're caught, you could be permanently banned from the United States, he adds.
Snowbirds who are not sure where they land on the tax divide should consider speaking with a qualified tax professional. Moody says the information sharing agreement was likely sparked by an influx of Canadians buying U.S. rental properties after the 2008 real estate crash, when high oil prices pushed the buying power of the Canadian dollar to over US$1.10. According to a 2023 snowbirdadvisor.ca report, approximately one half of Canadian snowbirds in the U.S. own real estate.
The Canadian Snowbird Association estimates that one million retirees typically head south each winter, but that number has fallen by 15 to 20 per cent.
BNNBloomberg 
CTVToronto:Dale Jackson: Snowbirds heading south can expect extra scrutiny from the U.S.This story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
U.S. Travel Rules Alien Registration Form CRA-IRS Information Sharing Substantial Presence Tax
Canada Latest News, Canada Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
In the face of a new neutrality law, Alberta educators grapple with referendum lessonsIn Brett Dibble’s Grade 12-level social studies classes, lessons about Alberta’s 10 fall referendum questions are among the first issues students dived into this school year.
Read more »
New coalition calls out Manitoba’s new rent control measuresA new coalition wants the province to back down on new rent control measures.
Read more »
Opinion: Why a former FTC chairman is offering Canadians optimism despite Trump’s economic coercionWilliam Kovacic believes that relationships between U.S. and Canadian institutions will endure because they were forged over decades
Read more »
Nanos Research Poll Finds 47 Percent of Canadians Oppose Airport Privatization PlanA new Nanos Research survey for CTV News shows more Canadians oppose the federal government's plan to let private investors operate the country's four largest airports than support it.
Read more »