RRSP withdrawal

[andaluri]

Hi,

I worked for the US firm for the past 8 years out of which I lived in Canada for 18 months (April 2002 to November 2003) while still being paid in the USA on W-2 and no Canadian income. I filed my Canadian taxes and US taxes as per the rules. I also opened RRSP account to save taxes in Canada. As per the tax returns the tax professional did not file any forms to declare RRSP distributions in the past.

In 2008, I withdrew all my funds in lumpsum paying Non Resident withholding tax to Canada. I took out a total of about $20,000 USD from the account after closing.

I'm wondering what do I need to do:
1. How do I come clean with IRS? Any suggestions on what forms to file?
From the posts here, I may have to file amended returns to previous years. What about 2008 tax returns? Do I need to file anything for the lumpsum distribution?

2. I have been a non resident of Canada since November 2003. No residential ties. But I had the RRSP account since 2003 till 2008. Can I save any canadian taxes if I file non-resident returns. The revenue canada withheld 6,700 CAD.

3. Do you offer any professional help? above and beyond the great help you provide in this forum? if so, any ideas on fees you charge?

I greatly appreciate your help.

Thanks,
Sam Rao

[nelsona]

1. You should have filed a Form 8891 for every RRSP you had every year you filed a 1040. I would be going back those years and amending.
For this year you need to determine how much growth your RRS had over the initial contributions. This is the taxable portion of your RRSP withdrawl for IRS purposes.


2. No. The 25% tax is the correct NR tax.

3. non pro.