1099-DIV and RRSP

ethanpurdy · Post by **ethanpurdy** » Wed Apr 12, 2017 10:42 am

I'm a US/Canadian citizen living in Canada. I've noticed that my brokerage (Virtual Brokers) provided a 1099-DIV for my RRSP account. My understanding is that dividends from the RRSP account do not need to be reported to the IRS. Why would they have provided that form?

Also, I used Serbinski for my taxes this year and noticed that the dividends reported on the 1099-DIV were included as foreign income. I think this is a mistake as the account is based in Canada, only holding Canadian listed ETFs, and is in my RRSP. This then shouldn't have counted as taxable income.

Am I missing something here?

nelsona · Post by **nelsona** » Wed Apr 12, 2017 11:01 am

No. They are not taxable, and should not have been included, and should not be issued either.

Why serbinski included these is for them to tell you, but did you mention all these things to the preparer? You are paying a lot to have simple mistakes like that made on your return.

ethanpurdy · Post by **ethanpurdy** » Wed Apr 12, 2017 11:06 am

Thanks for the response and clarification Nelsona. I'm talking with Virtual Brokers about another error they made (incorrect calculation of non-registered 1099-DIV). Once that's fixed I'm going to talk with Serbinski. They made many little mistakes all over the US and Canadian returns.

nelsona · Post by **nelsona** » Wed Apr 12, 2017 11:09 am

Sorry to hear that (I have nothing to do with that firm, btw).

The Cdn brokerages have become so paranoid of FATCA that they can't even folw the simplest rules.

ethanpurdy · Post by **ethanpurdy** » Wed Apr 12, 2017 11:12 am

Haha I'm so paranoid about IRS and FATCA too that I pay tons of money for (relatively) simple cross border tax preparation. Next year hopefully I'll have learned enough to do it myself!

Thanks for all that you do for the forum!

nelsona · Post by **nelsona** » Wed Apr 12, 2017 11:15 am

Don't get me started. It was shameful how the high-end Cdn tax prep industry HYPED-then-GOUGED US citizens living in Canada.

Guess they still are....

ethanpurdy · Post by **ethanpurdy** » Wed Apr 12, 2017 12:49 pm

Yeah seriously. The $200 fee for doing the health care exemption form (8962) is especially frustrating. It's 5 boxes that need to be filed out.

ethanpurdy · Post by **ethanpurdy** » Wed Apr 12, 2017 1:45 pm

sorry Form 8965*

tony · Post by **tony** » Fri Apr 14, 2017 12:54 am

What should we do for such case? Since 1009 form is issued, it means that information has been shared to IRS. That said, you need to pay tax when filing your tax? Otherwise, IRS will see the discrepancy and come after the person.
Right?

nelsona · Post by **nelsona** » Fri Apr 14, 2017 8:21 am

No. Ignore it.