8891 Never Filed

nelsona · Post by **nelsona** » Tue Feb 06, 2007 11:01 am

No. TD filing is actually MORE important as it can get you serious fines, like $500,000. Not fuling an 8891 will only cost your $35,000

Leslie · Post by **Leslie** » Tue Feb 06, 2007 11:38 am

That's enough to convince anybody to get those papers in ASAP!!! So now all we have to do is figure out if we want to take it out now and be done with this whole reporting thing or wait 20+ years for retirement. Obviously we still need to file the 8891 and TD F. Any thoughts on when it is best to collapse the RRSP?

hungarianpride · Post by **hungarianpride** » Tue Feb 06, 2007 11:39 am

This would have been so much easier if I had known about this when we moved (we used tax accountants that "specialized" in Immigration tax, but this is the first it's come up!)

OK, so for our 3 RRSPs that we cashed out in 2006 (total was over $10K USD), I will file an election under Rev Proc 2002-23 for 2002, and 2003. For 2004, 2005, I will file 1040x and 8891s for the RRSPs. For 2006, I will file 8891s when I file my 2006 taxes.

For the TD F 90-22.1, do I have to go back for previous years or only file a form for the current year? Do I need to include money that is sitting in a Teacher's Pension fund? Finally, is this form completely separate from the IRS tax forms (i.e has nothing to do with 1040)?

Thanks so much for your help, Nelson.

nelsona · Post by **nelsona** » Tue Feb 06, 2007 11:49 am

TD forms are separate, and should not even be sent with your forms, they go to Detroit in all cases.

I would not back-file, since there is no provison to do so.

You need to submit a 1040-X to send in your RP statements as well, not jus the old 8891s.

If you have signing authority over the pension accoun (.ie it is your account), then you need to include it. If you have no authority over the account (or if it isn't even an account, it's mertely a stake in the pension plan like 99% of pensions), then no.

Some do say that you should file an RP 02-23 statement for any pensions that you have (the instructions included RPPs), but I would not.

hungarianpride · Post by **hungarianpride** » Tue Feb 06, 2007 12:21 pm

Thanks for the 1040x for 2002, 2003. Makes sense. Since they are all 1040 amendments, am I correct that they can all be sent together (1040x's for 2002, 2003, 2004, 2005)?

One more question about the TD form. For 2006, we no longer have a total of $10,000 USD in foreign accounts (from what you wrote, it doesn't sound like the Teacher's Pension would need to be included). So, for 2007, I no longer have a total of $10K, so no TD form. Although we cashed out the RRSPs in May, 2006, we should have filed TD form for last year. Should I file one TD form for 2006 (albeit 8 months past the June 30th, 2006 deadline) and be done with it

nelsona · Post by **nelsona** » Tue Feb 06, 2007 1:48 pm

I would send all the 1040-X's in one envelope.

I would only send in the TD form for calendar year 2006, which is due in June 2007.

denisharlock · Post by **denisharlock** » Tue Feb 06, 2007 4:14 pm

Going back to my original posting of this thread ---

I never filed 8891. But I will now:

1) file 8891 and 2002-23 elections (per Mark)
2) file TD F 90-22.1 to Detroit (per nelsona) - one per yr or only one?
3) now what about 1040X ?

Is it just my head that's spinning?

Thanx guys, Denis

nelsona · Post by **nelsona** » Tue Feb 06, 2007 4:25 pm

You need to submit 1040-X for every year that you are going to amend your return. To these you will attach whatever statement or form you are sending. You are ammending your returns to add the statement or form 8891.

You need to send a TD form for 2006 by the end of June. Forget about the previous years.

nelsona · Post by **nelsona** » Tue Feb 06, 2007 4:26 pm

... and I do fing that there has been a lot of post 'hi-jacking' in the past week.

If some asks a question, either answer it, ask for specifics, or leave it alone.

If you have your own question, ask it in your own post.

Oliver · Post by **Oliver** » Tue Feb 13, 2007 12:09 am

If I have never made an election under Article XVIII(7) and follow the advice provided in this thread of filing 2002-23 for 2002-3 and 8891 for 2004-6, then I assume that the year that I first made an election (box 6b of my 8891's) is 2002. Is that correct?

nelsona · Post by **nelsona** » Tue Feb 13, 2007 7:11 am

shsamardar · Post by **shsamardar** » Sat Feb 17, 2007 3:04 pm

Hi

Do we have to report line of credits on TD form?

Do we have to report RRSPs on TD form?

Thanks

chrisontario · Post by **chrisontario** » Mon Mar 26, 2007 2:47 pm

[quote="nelsona"]TD forms are separate, and should not even be sent with your forms, they go to Detroit in all cases.

If you have signing authority over the pension accoun (.ie it is your account), then you need to include it. If you have no authority over the account (or if it isn't even an account, it's mertely a stake in the pension plan like 99% of pensions), then no.

[/quote]

nelson, I need clarification on what is "signing authority" over a pension account. I thought all pensions were in the individual members' names? I have a small pension (currently under $10K) which I wasn't going to include on the 8891 & TDF forms, but now I'm wondering if I should for peace of mind.

I was "vested" so I earned to right to receive a pension at age 65; both the employer and I contributed to it. When I resigned years ago, I asked the pension company if I had to collapse the pension plan. They said no. Further, prior to moving to the USA, I asked again if I had to collapse it, and they said no.

I don't have the control over the pension funds as I do with my RRSPs and LIRAs accounts. I get annual statements from the pension company saying what it's worth at year-end.

Thanks.

nelsona · Post by **nelsona** » Mon Mar 26, 2007 6:31 pm

Your pension is not a financial account.

HarveyC · Post by **HarveyC** » Mon May 14, 2007 10:03 pm

I've filed 1040-X for 2001-2005. I've attached the appropriate statement or form 8891. I included a cover letter indicating we were unaware of the requirement to file annually to defer RRSP earnings, now that we are aware we will do so going forward, it was always our intention to defer such earnings, and asked the Commissioner to forgive us. I did all this a couple of weeks before e-filing my 2006 return which indicates the 1st year I elected to defer was 2001. I just received a response from the IRS stating: "Pursuant to Rev Proc 2002-23, the election to which you are referring must be made on or before the due date of the original return, including extensions." Any suggestions on how I should proceed? What are the implications now? Will I be now hit with a large tax bill now that I've alerted Uncle Sam to my RRSP's?