A good friend is a U.S. citizen living in Canada with two RRSP's that have under $100.0 in them. She files her U.S. taxes. Her tax advisor recommended to become compliant that she not backfile her 8891's but start reporting in 2011 tax year because she would not owe tax in any year (going back six years) and IRS wouldn't bother with such a small amount. She claims she filed FBAR's but forgot those accounts. Any advice I can pass on...?
Thanks all and GREAT forum BTW!
Late and un-filed 8891's
Moderator: Mark T Serbinski CA CPA
I know what the acct said, which was the fine and penalty that she wuld pay (becasue the account was so little) was not worth paying him to do the amendments.
Of course you would send explanation. and you would send 1040-X for each 8891.
Of course you would send explanation. and you would send 1040-X for each 8891.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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I had a personal experience similar to this one. I backfiled several years of 8891's and attached the corresponding 1040-X for each year. I had no problems with the submission - no audits or penalties. My explanation was basically that I had not heard of these forms previously, and presumably that was sufficient.
I sent these in during the amnesty period last year, but I think that officially amnesty is still going on under a different IRS program (nelsona may know more than I do).
The forms are really not too hard to complete, if you've got the records & can compute the change in value at the end of each year. Good luck to your friend!
I sent these in during the amnesty period last year, but I think that officially amnesty is still going on under a different IRS program (nelsona may know more than I do).
The forms are really not too hard to complete, if you've got the records & can compute the change in value at the end of each year. Good luck to your friend!
Not a professional opinion.
[quote="CdnAmerican"]I had a personal experience similar to this one. I backfiled several years of 8891's and attached the corresponding 1040-X for each year. I had no problems with the submission - no audits or penalties. My explanation was basically that I had not heard of these forms previously, and presumably that was sufficient.
I sent these in during the amnesty period last year, but I think that officially amnesty is still going on under a different IRS program (nelsona may know more than I do).
The forms are really not too hard to complete, if you've got the records & can compute the change in value at the end of each year. Good luck to your friend![/quote]
Thanks all. I will advise her to backfile.
I sent these in during the amnesty period last year, but I think that officially amnesty is still going on under a different IRS program (nelsona may know more than I do).
The forms are really not too hard to complete, if you've got the records & can compute the change in value at the end of each year. Good luck to your friend![/quote]
Thanks all. I will advise her to backfile.