Tax Disclaimer

1. No Tax Advice

DualFiler provides general educational information about cross-border tax topics affecting Canadians in the United States. Nothing on this Platform constitutes tax advice, legal advice, financial advice, or any form of professional counsel.

The information presented on this Platform is not a substitute for professional tax advice tailored to your individual circumstances. Cross-border tax situations are inherently fact-specific. Two individuals with seemingly similar profiles may have dramatically different filing obligations based on factors including but not limited to: the specific dates of entry and departure from each country, the nature and location of their assets, the source and character of their income, their marital status, the residency status of their spouse, prior treaty elections, prior filing history, and pending immigration applications.

You should consult a qualified, licensed cross-border tax professional before making any decisions regarding your tax filings, treaty elections, voluntary disclosures, or any other tax-related matter. The consequences of incorrect cross-border tax filings can include substantial penalties, interest, criminal prosecution, and immigration consequences.

2. No Professional Credentials

DualFiler is an educational technology platform. The Platform, its operators, and its contributors do not hold, and do not claim to hold, any of the following professional designations or authorizations for the purpose of providing services through this Platform:

• Certified Public Accountant (CPA) licensed in any U.S. state or territory
• Enrolled Agent (EA) authorized by the IRS to represent taxpayers
• Licensed attorney or member of any state or provincial bar association
• Chartered Professional Accountant (CPA) designated in any Canadian province
• Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA)
• Registered Tax Return Preparer or Annual Filing Season Program participant
• Authorized representative registered with the CRA under T1013
• Any other professional designation that would authorize the provision of tax, legal, or financial advice

No person associated with DualFiler is acting in a professional capacity when providing content for this Platform. All content is provided in a purely educational and informational capacity.

3. Not a Tax Return Preparer

DualFiler does not prepare, complete, sign, file, transmit, or submit any tax return, amended return, information return, election, or report to any government agency on behalf of any user. This includes but is not limited to:

• IRS Form 1040, 1040-NR, and all schedules and attachments
• FinCEN Form 114 (FBAR)
• IRS Forms 8938, 3520, 3520-A, 8621, 8833, 8840, 1116, and all other international information returns
• CRA T1 General, T1135, T2209, NR4, T1159, and all other Canadian tax forms
• Any state, provincial, or local tax return

DualFiler is not an Electronic Return Originator (ERO) registered with the IRS e-file program. DualFiler is not certified under the CRA NETFILE program. DualFiler does not generate completed tax forms that can be printed and mailed. Any form names, numbers, or references on the Platform are provided solely for educational identification purposes.

4. Not Subject to Circular 230

The content provided on this Platform is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

In accordance with IRS Circular 230 (31 C.F.R. Part 10), DualFiler is not a “practitioner” as defined in Section 10.2(a) of Circular 230. No content on this Platform constitutes a “covered opinion” or “other written advice” as those terms are used in Circular 230. The educational content on this Platform is not provided in the context of a practitioner-client relationship and does not meet the requirements for reliance opinions, limited scope opinions, or marketed opinions under Circular 230.

Any taxpayer relying on information from this Platform does so entirely at their own risk and cannot use such reliance as a defense against penalties imposed by the IRS.

5. Exchange Rate Disclaimer

Exchange rates displayed on this Platform are provided for educational and illustrative purposes only. Cross-border tax filings require the use of specific exchange rates published by specific government agencies for specific purposes:

• IRS Annual Average Rate: Used for converting income reported on Form 1040 and Form 1116. Published by the IRS.
• Bank of Canada Annual Average Rate: Used for converting income reported on the T1 General and T2209. Published by the Bank of Canada.
• U.S. Treasury Year-End Rate: Used for converting account balances for FBAR (FinCEN 114) and Form 8938 (FATCA). Published by the U.S. Treasury Department’s Bureau of the Fiscal Service.

Using the wrong exchange rate for the wrong purpose can result in materially incorrect reporting. For example, using the annual average rate instead of the year-end Treasury rate for FBAR reporting could incorrectly push your aggregate account balance above or below the $10,000 reporting threshold.

The exchange rates displayed on this Platform may be placeholders, estimates, or outdated. Always verify the applicable exchange rate directly from the relevant government source before filing any return or report.

6. Calculator Disclaimer

All calculators on this Platform — including the FBAR Penalty Calculator, Foreign Tax Credit Estimator, Substantial Presence Test Calculator, and Currency Converter — produce estimates for educational purposes only. Calculator outputs:

• Are based on simplified models that may not account for all relevant factors in your specific situation.
• May use penalty amounts, thresholds, and rates that are outdated or subject to annual inflation adjustments.
• Do not constitute a determination of your actual tax liability, penalty exposure, or filing requirements.
• Should never be used as the sole basis for any tax filing, payment, election, or disclosure decision.
• May contain errors in logic, data, or calculation that we have not yet identified or corrected.

The actual penalties, taxes, credits, and obligations applicable to your situation can only be determined by a qualified tax professional with full knowledge of your circumstances.

7. Treaty Interpretation Disclaimer

References to the Canada-United States Tax Convention (the “Treaty”) on this Platform are provided for general educational purposes only. Treaty interpretation is a specialized area of tax law that requires consideration of:

• The specific text of the applicable Treaty article, including any protocols or amendments
• The Technical Explanations published by the U.S. Treasury Department
• The CRA’s published interpretations and income tax folios
• Relevant case law from the Tax Court of Canada and the U.S. Tax Court
• The OECD Model Tax Convention commentaries
• The Vienna Convention on the Law of Treaties interpretation rules
• The interaction between Treaty provisions and domestic law, including the Savings Clause (Article XXIX(2)) and its exceptions

The Savings Clause in particular creates significant complexity. Under Article XXIX(2), the United States may tax its citizens and residents as if the Treaty had not come into effect, subject to limited exceptions. This means that U.S. citizens and green card holders cannot rely on most Treaty provisions to reduce their U.S. tax obligations. DualFiler’s educational content may not fully account for the Savings Clause’s impact on every scenario discussed.

8. TFSA/PFIC Warning

The Tax-Free Savings Account (“TFSA”) is one of the most dangerous cross-border tax traps for Canadians in the United States. Users should be aware of the following critical issues:

• No IRS recognition: The TFSA is not recognized by the IRS as a tax-sheltered or tax-exempt vehicle. There is no US-Canada tax treaty provision that exempts TFSA income or gains from US taxation.
• Foreign trust treatment: The IRS treats the TFSA as a foreign trust, requiring annual filing of Form 3520 and Form 3520-A. Failure to file these forms carries minimum penalties of $10,000 per form per year.
• PFIC exposure: Canadian mutual funds, ETFs, and pooled investment vehicles held within a TFSA are likely classified as Passive Foreign Investment Companies (“PFICs”) under IRC Section 1291. PFIC taxation imposes punitive tax rates plus an interest charge that can result in effective tax rates exceeding 50% on gains.
• Annual Form 8621: Each PFIC held within the TFSA requires a separate Form 8621 for each tax year. A TFSA holding 5 Canadian mutual funds generates 5 Form 8621 filings annually.
• No retroactive QEF or Mark-to-Market election: The Qualified Electing Fund (QEF) and mark-to-market elections under IRC Section 1296 may not be available for prior years, locking the taxpayer into the punitive default PFIC taxation regime under Section 1291.

If you are a US tax resident with a TFSA, seek professional tax advice immediately. The compounding penalty and compliance costs of an unreported TFSA can exceed the value of the account itself.

9. FBAR/FATCA Disclaimer

Information about the Report of Foreign Bank and Financial Accounts (“FBAR,” FinCEN Form 114) and the Foreign Account Tax Compliance Act (“FATCA,” Form 8938) is provided for educational purposes only.

FBAR and FATCA are separate reporting requirements administered by different government agencies with differentthresholds, different filing procedures, and differentpenalty structures. Meeting the threshold for one does not necessarily mean you meet the threshold for the other. Conversely, you may be required to file both an FBAR and a Form 8938 reporting the same accounts.

DualFiler does not file FBARs or FATCA reports on your behalf. FBAR must be filed electronically through FinCEN’s BSA E-Filing System. Form 8938 must be attached to your income tax return. For full details, see our FBAR/FATCA Disclosure.

Penalties for willful failure to file an FBAR can reach the greater of $100,000 or 50% of the account balance per violation, plus potential criminal prosecution carrying fines up to $500,000 and imprisonment up to 10 years. These are among the most severe penalties in the entire Internal Revenue Code. Do not rely solely on this Platform to determine your FBAR or FATCA obligations.

10. No Guarantee of Accuracy

While we strive to provide accurate and up-to-date information, DualFiler makes no representations, warranties, or guarantees regarding the accuracy, completeness, reliability, suitability, or currentness of any content on the Platform. Specifically:

• Tax laws, regulations, and IRS/CRA administrative guidance change frequently, often with retroactive effect.
• Penalty amounts are adjusted annually for inflation and may not reflect the most current indexed amounts.
• Filing thresholds, deadlines, and procedures may change between the time content is published and the time you read it.
• Court decisions may alter the interpretation of tax provisions discussed on the Platform.
• Exchange rates fluctuate daily and are only finalized after the end of the tax year.
• The content may contain typographical errors, computational errors, or errors of omission.

Always verify all information against the primary government sources: IRS.gov, the Canada Revenue Agency website, FinCEN.gov, and the U.S. Treasury Department’s Bureau of the Fiscal Service.

11. User Responsibility

You, the user, bear sole and complete responsibility for:

• Determining your own tax residency status under the domestic laws of both the United States and Canada, as well as under the Canada-US Tax Treaty.
• Identifying all tax returns, information returns, and reports that you are required to file with any taxing authority.
• Filing all required returns and reports accurately, completely, and by the applicable deadlines.
• Paying all taxes, interest, and penalties owed to any taxing authority.
• Making all tax elections (including treaty elections, PFIC elections, RRSP deferral elections, and S.217 elections) correctly and on time.
• Maintaining all records and documentation necessary to support your tax positions for the applicable statute of limitations period.
• Engaging qualified professional advisors as needed for your specific circumstances.

12. Annual Verification Required

Tax rules, thresholds, penalty amounts, filing deadlines, exchange rates, and administrative procedures change every year. Content on this Platform is written with reference to a specific tax year (currently Tax Year 2025, filed in 2026). You must independently verify all information against the current year’s official publications before relying on it.

Key items that change annually and must be verified include:

• FBAR non-willful and willful penalty amounts (inflation-adjusted annually by FinCEN)
• FATCA (Form 8938) reporting thresholds
• IRS annual average exchange rate (CAD to USD)
• Bank of Canada annual average exchange rate (USD to CAD)
• U.S. Treasury year-end exchange rate
• Standard deduction and tax bracket amounts
• Foreign earned income exclusion threshold
• Filing deadline dates (which may shift due to weekends or holidays)
• T1135 and T1 General penalty calculation amounts

13. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DUALFILER, ITS OPERATORS, OWNERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, CONTRIBUTORS, LICENSORS, AND AFFILIATES SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING BUT NOT LIMITED TO DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, ARISING OUT OF OR IN CONNECTION WITH:

• Your use of, reliance on, or inability to use the Platform or any content thereon;
• Any errors, omissions, inaccuracies, or outdated information in the Platform’s content, calculators, guides, or tools;
• Any tax penalties, interest, additional taxes, or other financial consequences arising from actions taken or not taken based on information from the Platform;
• Any missed filing deadlines, incorrect form selections, or improper treaty elections;
• Any criminal penalties or immigration consequences arising from tax non-compliance;
• Any loss of data entered into the Platform’s tools or calculators;
• Any decision to file or not file any tax return, information return, or report;
• Any decision to make or not make any tax payment, election, or disclosure.

IN NO EVENT SHALL THE AGGREGATE LIABILITY OF DUALFILER EXCEED ONE HUNDRED UNITED STATES DOLLARS (USD $100.00).

This limitation applies regardless of the theory of liability (contract, tort, strict liability, negligence, or otherwise) and regardless of whether DualFiler has been advised of the possibility of such damages. Some jurisdictions do not allow the exclusion or limitation of certain damages, so some of the above limitations may not apply to you. In such jurisdictions, DualFiler’s liability shall be limited to the maximum extent permitted by law.