Is a 3520 unnecessary for a Tangerine TFSA?

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Fructose
Posts: 22
Joined: Sat Apr 28, 2012 9:29 pm

Post by Fructose »

Might he trying to charge me extra for work that isn't necessary?


Is there some definitive source / web site I can refer him to?

As knowledgeable as you be, if I confront him saying he's incorrect based on what somebody said on some forum I don't have any evidence/backing.
Potassium
Posts: 39
Joined: Sun Apr 14, 2013 1:26 pm

Post by Potassium »

Nelsona, so are you saying if somebody holds a Tangerine TFSA, a 3520/3520A is definately NOT required to be filed for a US return?
Potassium
Posts: 39
Joined: Sun Apr 14, 2013 1:26 pm

Post by Potassium »

Because last year I hired a cross-boarder specialist accountant and he filed a 3520/3520A at considerable expense for my Tangerine TFSA, and after reading this thread I asked him if one was required he said it was as the IRS consider all TFSAs as trusts even if Tangerine themselves don't and therefore would be filing one for 2014.
rafa02
Posts: 95
Joined: Sat May 26, 2012 3:18 pm

Post by rafa02 »

Interpretations and opinions are a fact of life when it comes to tax issues, with the complicated tax codes of the US and Canada. I have seen many statements on this and other forums and various blogs and websites stating categorically an RESP and TFSA are considered foreign trusts by the IRS and require 3520/3520a. This may very well be the case, but I have been unable to verify this interpretation and requirement by searching the IRS website. I have not found any interpretive bulletins, instructions, guidance or even court cases from the IRS.

I have spoken on numerous occasions with a very experienced US/Can tax specialist and it is his interpretation (and also the majority (but not all) of his collegues in the firm), that these items do not meet the requirements of a foreign trust and hence 3520/3520A. A TFSA can be simply a deposit savings account, and a USC has to report the interest income on the US return. CRA refers to an RESP as a contract, not a trust.

Nevertheless, I have opted to forego an RESP and TFSA in my name until I see definitive information from the IRS; it just does not seen worth the risk.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

If you have written documentation from a CDn broker/bank that you TFSA account is not a trust, you don't need 3520. Otherwise, you do.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
karma
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Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

karma
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Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

Sorry above posting was meant for another thread. :(
karma
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Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

1. I am having a tough time finding - if a QUESTRADE TFSA - stock trading account is a Trust or not. Chatted with their online support and they had no idea if was considered as a trust. Kept asking me if submitted any documents to authorize it as a trust setup :roll:

Anyone here have a TFSA trading account with them and filling 3520s. ?

2. Also, spoke with one of the big tax firms partners and was suggested that 3520A is due in April - as its infact an attachment to go along with 3520. Again didn't find a concrete answer on this when I searched in the forums. Please provide input the due dates.

thanks again/
DaveM
Posts: 52
Joined: Thu Jun 12, 2014 12:46 am

Post by DaveM »

Karma, for any individual or entity using a calendar fiscal year (01/01/14-12/31/14), the 3250a is due on March 15. The 3250 is due on April 15. You got your info from a tax firm?
DaveM
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Joined: Thu Jun 12, 2014 12:46 am

Post by DaveM »

I meant to add that I believe one can file for a filing extension (re: 3250a) by filing form 2758.
karma
Posts: 13
Joined: Tue Mar 03, 2015 9:12 pm

Post by karma »

Thanks DaveM.
Yes, was told verbally by a tax accounting firm that deals in international taxes - that as the primary form 3520 is due with regular taxes / April. The attachment would follow the same. I did refer them to the info given on the taxmans website- but they repeated that its an attachment.

Anyone filling this for Questrade TFSA ?
DaveM
Posts: 52
Joined: Thu Jun 12, 2014 12:46 am

Post by DaveM »

The naming of Form 3520a is unfortunate because, intuitively, onw would think that it is a subsidiary form to form 3520 and that they would be filed together, but actually it is a form giving distinctly different info than 3520 and, particularly, on 3520a one has to fill out the Foreign Grantor Trust Owner Statement which has to be given to all Owners so it can be attached to form 3520 for filing on April 15, hence the earlier 3520a filing date.. (Of course, in many circumstances on this forum, there is just one Owner.)
Subaron
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Joined: Sun Mar 22, 2015 2:25 pm

Post by Subaron »

[quote="Potassium"]Nelsona, so are you saying if somebody holds a Tangerine TFSA, a 3520/3520A is definately NOT required to be filed for a US return?[/quote]

Did you ever find out if Tangerine TFSA is considered a Trust?
And whether or not a 3520 is needed for it?
Edmonton07
Posts: 1
Joined: Thu Apr 02, 2015 3:14 pm

Post by Edmonton07 »

I called Tangerine a couple of days ago and the customer service representative told me Tangerine TFSA was not a trust.
Just to make sure he was right, I sent them a message with my questions. I have just received an email from Tangerine confirming that Tangerine TFSA (formerly ING) is not a trust.
Send them a message, just to have some written proof.
As far as I understand, if it is not a trust, you do not need to fill out 3520/3520A.

Nelsona, thank you for pointing me into the right direction!
nelsona
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Location: Nowhere, man

Post by nelsona »

As a point of interst, I wonder if ING would say that their RRSPs, and RESPs are trusts or not. Because IRS definitely views these as trusts, no matter how they are structured in canada.

And, it would only be their tangerine savings account that would not be a trust. thier investemnt account would indeed be a trust, even in canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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