Mark, Nelson,
Thanks for the valuable information you post on your forums. I am like many of your forums members where I have unintentionally not filed my 8891’s. I will file for years 2002-2006 soon. As a follow up to the recent posting on this topic, I need your assistance with the following. Correct me if I am wrong where applicable.
1. For 2002 & 2003, I don’t need form 8891, but I need to send a statement to elect/differ interest/dividends. Are your templates posted on “canadatotwincities.com\taxes\rrsps,the tax treaty, the mess†still valid? If not, please advise on where to find sample templates.
2. For 2004 – 2006, I will file form 8891.
3. In 2004, accounts were rolled-over (tax-free) from one bank to another. Do I need to send “Transfer type election†statement with form 8891?
4. For 2002-2006, do I still need to send an updated schedule B where I answer “yes†to question 7a?
5. One of my retirement accounts in Canada is Locked-In Retirement Account (LIRA). Does this also require election and differing of taxes? What should I select on form 8991 for this type of account, RRSP or RRIF?
6. Where do I have to send all the above to?
Many thanks for your assistance in advance.
Elections for RRSP's..
Moderator: Mark T Serbinski CA CPA
1. Yes. For 2003 you need to add year-end valuse per IRS Notice 2003-75.
2. No. a form 8891 for the old account, show '0' year-end, and a note that the account has been transferred to another, is sufficient.
4. Yes
5. A LIRA is an RRSP. A LIF/LRIF would correspond to a RRIF.
6. The instructions for 1040-X tell you.
Don't forget to include all your accounts on TD 90 form every year. Do not back file these (only do 2006), and do not send with 1040's or 1040-X.
2. No. a form 8891 for the old account, show '0' year-end, and a note that the account has been transferred to another, is sufficient.
4. Yes
5. A LIRA is an RRSP. A LIF/LRIF would correspond to a RRIF.
6. The instructions for 1040-X tell you.
Don't forget to include all your accounts on TD 90 form every year. Do not back file these (only do 2006), and do not send with 1040's or 1040-X.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Nelson, many thanks for the feedback. Like how one of your clients previously stated: “our heads are spinning†and you’re helping us getting things in order. If you don’t mind, I have a couple of follow up questions. Sorry if some of the questions are repeated from previous postings.
1. Where can I get a copy of Rev. Proc 02-23? I couldn’t find it on irs.gov.
2. Not knowing what the filing requirements were, I recently filed TD 90 for the past 10 years (98 through 07)!! How does this affect filing RRSP elections?
3. Where can I get past daily exchange rates? The only site I know of is the Federal Reserve one. But this site gives only 1 exchange rate per year for past years. Is that sufficient for 8891 purposes?
4. How much do you charge for completing 1 year’s work for filing 8891, including letters, 1040X, etc? If it’s cost-effective, then perhaps this is the best course of action for clients who want to avoid mistakes, i.e. using the work you do as a template for other years. As it is now, we’re behind with our filings, so we’re already at a disadvantage with the IRS.
1. Where can I get a copy of Rev. Proc 02-23? I couldn’t find it on irs.gov.
2. Not knowing what the filing requirements were, I recently filed TD 90 for the past 10 years (98 through 07)!! How does this affect filing RRSP elections?
3. Where can I get past daily exchange rates? The only site I know of is the Federal Reserve one. But this site gives only 1 exchange rate per year for past years. Is that sufficient for 8891 purposes?
4. How much do you charge for completing 1 year’s work for filing 8891, including letters, 1040X, etc? If it’s cost-effective, then perhaps this is the best course of action for clients who want to avoid mistakes, i.e. using the work you do as a template for other years. As it is now, we’re behind with our filings, so we’re already at a disadvantage with the IRS.
1. I'm quite sure it is still online
2. There is no provision to back-file TD 90 forms. It has no impact except to alert them that you have not filed. It also tells them you had an unreported RRSP.
3. Bank of canada website.
4. As my signature indicates, I'm not in the business. Cross-border specialist usually charge about $1000 for the full tax return
2. There is no provision to back-file TD 90 forms. It has no impact except to alert them that you have not filed. It also tells them you had an unreported RRSP.
3. Bank of canada website.
4. As my signature indicates, I'm not in the business. Cross-border specialist usually charge about $1000 for the full tax return
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
No, it telss them you had an RRSP last year, the yeear before, etc.
It is usually better to make the election to defer BEFORE telling them you have an RRSP. Otherwise they can deny your untimely election, and make you pay taxes on RRSP for the past 6 years.
As I said, there is no provision for backfiling the TD form, unlike the RRSP election. Whoever advised you to back-file TD form was not helping you.
It is usually better to make the election to defer BEFORE telling them you have an RRSP. Otherwise they can deny your untimely election, and make you pay taxes on RRSP for the past 6 years.
As I said, there is no provision for backfiling the TD form, unlike the RRSP election. Whoever advised you to back-file TD form was not helping you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing