Avoiding the Snowbirds’ IRS trap

“Their ‘border binder’ contains a detailed snapshot of their lives, tangible proof of who they are, where they live for most of the year, who they bank with, even their credit card statements.  Like the other 70,000 members of the Canadian Snowbird Association, the Slacks would never leave home without it.  Overkill? Not if you don’t want to be treated like a U.S. taxpayer. Snowbirds tagged as a ‘substantial presence’ can still dodge the bullet on U.S. taxes. But they will need to file ‘Form 8840 Closer Connection Exception Statement for Aliens’ with the IRS. Failure to file this form could result in hefty fines, even if no taxes were owed.”

http://www.thestar.com/business/personal_finance/retirement/2013/02/11/avoiding_the_snowbirds_trap.html

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