the highest aggregate balance of the year

[tsanaha]

http://hodgen.com/questions-i-answered- ... -and-ovdi/


a recent call to OVDI hotline was told IRS will grant late f8891 tax deferral election without private ruling letter, so no tax should be reported on non-distributed RRSP income, however, 25%, 12.5% or 5% base penalty will apply.

[madhoa]

I gather you have such an account ? I wouldn't give up hope just yet, because IRS agents contradict each other a lot.

[tsanaha]

madhoa,

thanks, yes i have RRSP (never been cashed out), if it comes FBAR penalty, i will contact TAS -- hope they can help..

here is what I do not understand, OVDI FAQ says "only assets with tax issue should be included in base penalty". once late f8891 election is granted, there should be no tax issue, what is the logic here ?"

i guess there are so many retirement plans from different countries.. and IRS does not want to give Canadians in US a special treat by using Can/US treaty.

FBAR penalty by itself (outside OVDI) has really nothing to do with tax at all.

[nstudent]

tsanaha:

You should definitely contact TAS if IRS insists on posting penalty on RRSP.

How did you handle your tax on PFIC in your 2010 tax filing? I assume your 2010 FBAR filing was timely. Did your 2010 return already include the PFIC, or, you put your PFIC in the 1040X?

Thanks in advance.

[tsanaha]

nstudent,

i did all the years the same (including 2010) and yes, i filed FBAR in time for the year 2010. My PFIC in 2010 is only small amount.

[calgary-alberta]

tsanaha, is your OVDI closed? I sent them package a few weeks ago and never heard anything back? Thanks in advance.

[tsanaha]

Calgary,

You can call OVDI hotline to ask the status of your package. They will tell you.

Mine is still open -- no agent has been assigned yet.