HOW WILL THE ENTRY/EXIT INITIATIVE AFFECT SNOWBIRDS?

Extended stays in the U.S. could soon come under scrutiny

While

the Entry/Exit Initiative hasn’t yet been fully rolled out, it’s on its way — and it will have implications for Canadian snowbirds that flock to the U.S. sunbelt over the winter months.

The initiative will allow both the Canadian and U.S. governments to know exactly how many days you’ve spent in the U.S. — something that wasn’t so rigorously controlled in the past.

Snowbirds have typically self-reported their residence status, often based on general calculations. But this hasn’t been working out so well for authorities. Indeed, the U.S. estimates there are 11 or 12 million aliens in the country — many of them related to visa overstays.

It’s not that snowbirds are wilfully breaking the law; oftentimes, they overstay by accident, due to confusion about visa rules. For snowbirds travelling back and forth to the U.S. multiple times over the course of a year, it’s easy to lose track of how long they’ve actually spent in the U.S.

CROSS-BORDER SHARING

Snowbirds are not the only ones who have been confused. Until now, U.S. and Canadian authorities weren’t able to track that data, either. While they knew when snowbirds entered the country, they didn’t have a system of recording when they left — so they had no way of knowing, in real time, if a Canadian citizen had overstayed their visa.

The Entry/Exit Initiative will change that, thanks to increased cross-border data collection between Canada and the U.S. For snowbirds, it means that spending extra time in the U.S. — even if it’s unintentional — could cause all sorts of problems, such as being taxed by the IRS or losing your provincial health insurance coverage back home in Canada.

On March 10, Prime Minister Trudeau and President Obama announced that both countries would proceed with the exchange of entry and exit records for all cross-border travellers. Soon afterward, on June 15, Canada’s Minister of Public Safety and Emergency Preparedness, Ralph Goodale, introduced Bill C-21 — otherwise known as the Preclearance Act, 2016.

If and when the bill is passed, it will allow for the expansion of the Entry/ Exit Initiative to include the collection and exchange of entry and exit information of all travellers, including Canadian citizens.

HOW TO PREPARE

Here’s how to prepare, so you’re not caught off-guard:

Canadians are allowed to stay in the U.S. no more than six months over a 12-month period. But the clock doesn’t start ticking at the beginning of each calendar year; those days are calculated based on a rolling 12-month period.

The Entry/Exit Initiative is designed to ease border congestion and could help speed up long lines of idling cars at border crossings. It could also help snowbirds at tax time; in the past, they’d have to contact both border agencies to request residency data — a process that could take a couple of months.

But it does mean spending extended periods of time in the U.S. could cost you if you’re not paying attention. It’s more important than ever to know the rules — and to play by them. If you’re out of Canada for more than 183 days over a 12-month period, that data will be shared with authorities on both sides of the border.

Aside from easing border congestion, the Entry/Exit Initiative is expected to save a substantial amount of money in social benefits paid to Canadians spending too much time outside of Canada. Indeed, Canada Revenue Agency and Employment and Social Development Canada expect to save between $194 million and $319 million over five years once the system is fully in place, according to reports.

“UNLAWFULLY PRESENT”

It will also make it easier for the IRS to track down people who owe them money. While the IRS will have access to real-time data, snowbirds will have to make sure they’re keeping track too or they could end up shelling out tax dollars on both sides of the border.

For snowbirds considered to be “unlawfully present” in the U.S., the consequences could be even worse: they could be banned from going back. If you’re unlawfully present from 180 to 365 days, you could face a three-year travel ban; after 365 days, you could face a 10year travel ban.

While Canadians are still awaiting the passing of the legislation, snowbirds would be wise to start keeping track of exactly how much time they’re spending in the U.S., so they don’t end up getting their wings clipped.