Serbinski Accounting Firms

The best argument against filing Form 8891 as an "annuitant" is that according to the instructions that choice makes you ineligible for the election on line 6 to defer tax!

Here's an IRS website with a fairly easy to use (as far as US tax law goes) comparison table of the requirements for filing ...

If it's a mutual fund, then you must file Form 8621. Good luck, have fun!

What luck, I come to the Serbinksi forums with a rejected 3520 question and this thread is at the top of the list.

I answered "no" to line 3, mostly because I didn't want the Royal Bank botching any IRS requests, and accordingly I filled out lines 15 through 18, but not to the satisfaction of the ...

It sounds like you are a US citizen with an interest in a "foreign" corporation. That means the corporation may need to file 1120-F. Someone else will have to advise whether you actually need to file or not. Keep in mind that Canada and the US have different methods of accounting (GAAP).

US ...

If you have made no withdrawals, write 0 on lines 7a and 7b. If you have made no contributions, write 0 on line 9. Write the market value of the plan on Dec. 31 on Line 8. If you've made the election to defer tax in the current or prior year, do not fill out line 10. Done!

Form 8891 is always ...

Hi YankNucks,

Strictly speaking, you must file Form 8891 on time including extensions. Refer to: http://hodgen.com/rrsp/get-private-letter-ruling-file-late-form/. However as nelsona wrote in another thread, penalties are rare because filing that form can eliminate current tax due on RRSP income ...

If you acquire and dispose of PFIC stock in the same year, it doesn't matter whether it's a Section 1291 or 1296 stock. The penalties in Section 1291 don't apply if you do not hold the stock across a year-end, and both sections allocate the gains to ordinary income anyway.

I've read the first two ...

To be clear, all references to "TIN" in this thread should read "EIN" for Employer Identification Number. The EIN is assigned to the TFSA because it is a trust, and it is the trustee's responsibility to file certain paperwork. The Canadian banks are uninterested in doing so for small customers.

Correct on all points.

If you acquired the PFIC stock in 2011, you may simply make either the QEF or MTM elections on Form 8621. If 2011 was not the first year of ownership, you must either obtain a Private Letter Ruling to make a retroactive election or apply the rules of Section 1291 as if you ...

Certain elections, such as the mark-to-market election on Form 8621 and the election to defer tax on RRSPs on Form 8891, are only available with timely filed returns, including extensions.

I agree that Form 8621 is a mess. I'm not sure how the IRS expects anyone who has not gone over the Treasury ...

As I understand it, maintaining residency in Canada while living abroad will be quite difficult. You will have a place to live, a job, possibly a car, bank accounts, etc. These are all things a resident would have. Therefore, you should file a departure return.

You should review IRS Publication 519 ...

A PFIC isn't required to conform to SEC regulations, they simply must compute ordinary earrings and capital gain "in accordance with U.S. income tax principles." The QEF election itself is actually quite simple: the fund provides a statement conforming to Treasury Regulations section 1.1295-1(g ...

Patti, renouncing US citizenship does not affect outstanding tax and reporting obligations. blairgoates would be liable for US tax until he expatriates.

blairgoates, you're right, US citizens holding Canadian mutual funds is fraught with problems.

I read the Section 1295 treasury regulations for ...

I included T4 and T2202A forms with the US returns, and 1099-DIV and 1099-B forms with the Canadian returns. However, I was not claiming a foreign tax credit in either country.

From the CRA:
"Filing a paper return
Attach your completed Form T2209, Federal Foreign Tax Credits and documents that show ...

"Judges of course have never had a problem shooting down their ridiculous arguments and there are many reported cases in which this happens (they can often be entertaining reading)."
http://forums.randi.org/showthread.php?t=183943

"The Truth About Frivolous Tax Arguments"
http://www.irs.gov/pub/irs ...