1040x for RRSP 8891s

[carlo]

I concede that there is some ambiguity as to whether the 8891 instructions exempt all unreported RRSPs from reporting penalities, or merely say that if you do file an 8891 then you can't be subject to 3520 requirements. (Which aren't as bad as you say, though---it's up to 40% of the money in question, according to the instructions on the 3520 and 3520A, and I don't know of any large penalties on small amounts of money.)

As for the statute of limitations, I was assuming that the filer had been filing US taxes regularly and had not grossly underreported income. Absolutely, if you haven't filed a return at all you need to do so. But if you're up to date on filings, and haven't underreported income by more than 25%, then the 3-year statute of limitations ought to apply.

[nelsona]

"But if you're up to date on filings, and haven't underreported income by more than 25%, then the 3-year statute of limitations ought to apply."

Agreed

The question then becomes: does this non-reported 'income' from the years when (a) you have not made an election, and (B) not reported the income, become part of your 'investment' in the RRSP or not.

[nelsona]

Another thing you have to remember carlo, is that the rulkes for RRSPs have cnged 4 times in 7 years, all in an effort to force compliance, mostly by Yanks living in Canada. They aren't that intersted in the yearly tax; they just want consistent reporting.

I've tried to encourage a consistent approach by as many people as possible, so that (a) IRS gets compfortable with 8891 (even the author has trouble telling pros what the form means), (b) the individual states don't adopt the california example and make RRSP taxable, and (c) stop needing to re-tool our RRSP sprteadsheets.

that is why I discourage, for example, continuing to file an RP 02-23 statement for RPPs. pensions are typically not controlled by the individual, unlike RRSPs.

That is also why I discourage people from contacting their state tax office to find out if RRSPs are taxable. States are always looking for new sources of tax (witness how many staes have declared a cell phone as being nexus). If a state wants to tax RRSPs, they can do like california and publish the rules.

[squinck]

Is there a date limit for amending income tax for the 2006 year ? I've seen somewhere August 15. I should add this is related to amending my taxes to include form 8891.

[nelsona]

To ammend a return you have no limit. To ammend such that anything you add will be considered to be 'timely filed' is 6 moonths after the original due date of april (so October). Used to be august until this year.

[icbusiness]

Below "File Rp-02-23
ref 1040X

Is this:
an IRS "Form"
or
os the RP-22-23 the "statement" in a letter about no changes to 1040 and electing to defer the US Income tax until the beneficiary share of the income is distributed to the beneficary?

[nelsona]

The RP 02-23 statement is a free-form statement which complies with the requirements of RP 02-23, which includes much of the information contained on form 8891.

It is not merely a verbal statement say that you have an RRSP and are electing.

[icbusiness]

Thank you - Sorry I am not 100% up on fine print requirements/jargon ,,,I am learning alot in last 12 hours that to this forum

ref 8891/RRSP- I need to amend my 2005-2006 returns

Could you please illustrate what I need to "say"/include
i.e. what in the "free-form statment" differs from what I stated in my earlier post.

[Do I need to send this free form statement and file the 8891 for 2002-2005?]

[nelsona]

can't help you at this time. I really meant my previous advice to enjoy your vacation.

You've waited this long, what's another few months...