3520 or 8621 for canadian life insurance segregated fund?

[newbie12345]

Hi Nelsona,

You have giving me so much useful information in the past. thanks a lot!

Please give me one more:

I used to have one non-register account with sunlife (a canadian life insurance company). Inside this account, it hold sunlife segregated money market fund worth about $73 canadian dollar.

When do the OVDI, my tax agent treat it as mutual fund and reported it on 8621 (PFIC).

In year 2011, I closed this account and sell all the segregated fund. I hired an other CPA to do the tax return. The new CPA follow the same style of previous years and report it on 8621.

I just checked the NR4 form from sunlife and realized the income from the segregated fund on the NR4 form is "estate and trust income".

I understand canadian financial institute report income from mutual fund and segregated fund as "income from trust" on the NR4 form and IRS treat mutual fund as pfic.

Does this pfic rule also apply to segregated fund?

Do I need to file a late 3520 (may be a 3520-A as well) for this segregated fund? They will charge me 10K penalty unless I could find a good reason why I did not file 3520 on time for this $.15 income! Please help!