Messed up my 8891

reiver416 · Post by **reiver416** » Wed Apr 11, 2012 3:29 pm

Hi, I submitted an 8891 for tax year 2010, and took the election for subsequent years. I did not think I needed to submit an 8891 for previous years. I also forgot to put my RPP from work on my 8891 as I thought it didn't apply. I now know I need to include this account as well.

If I submit an amended 1040 with 8891 for 2008 and 2009, how am I supposed to answer the questions on 8891 about whether it is my first time taking the election? Should I take the election in 2008, and then change my 8891 for 2010?

Also, do I send an 1040X, and schedule B with these amendments? I have never submitted a Schedule B with any of my returns.

All of my FBARS are up to date.

Thanks.

nelsona · Post by **nelsona** » Wed Apr 11, 2012 3:47 pm

It your RPP is justs penasion plan, there is no 8891 requirement. But if this is a group RRSP, then yess you should 8891, and yes, you must mke the election the earliest year.

And, yes, you should include sched B for the answers at the bottom. Not a penny of interest was reported?

reiver416 · Post by **reiver416** » Wed Apr 11, 2012 3:52 pm

The RPP is Registered Pension Plan and I contribute and my employer contribute. The monies go into an mutual fund investment.

If I already took the election in 2010, I can go back and take it again in 2008?

dgreenleaf · Post by **dgreenleaf** » Wed Apr 11, 2012 5:31 pm

I am working on the same issue and am looking forward to a reply.

I was going to:
1. Fill out Form 8891 and 'claim' to have made the election in 2004, although that has not been done yet.
2. Back file amended returns via 1040X with 8891 attached all the way back to 2004. In the 2004 version of the 8891 I check the election box.

Questions
1. Is this a reasonable way to do it?
2. No need to go convoluted Private Letter Ruling route?

reiver416 · Post by **reiver416** » Wed Apr 11, 2012 5:43 pm

I believe you only have to go back 3 years for the 8891. Normal audit rules are supposed to apply since they changed the reporting requirement for foreign trusts. At least that is what I have been reading.

dgreenleaf · Post by **dgreenleaf** » Wed Apr 11, 2012 5:46 pm

Yes, that is what I understand as well. So my solution is overkill I guess. But FBAR audit can go 6 years, no? So I figure why not just send them all?
Thanks for your reply.

reiver416 · Post by **reiver416** » Wed Apr 11, 2012 5:54 pm

I overkilled last year on my FBAR. Went back over 10 years. One thing to consider the 1040X form for amended return only goes back 3 years. It seems from this site that people are filing late 8891s. They are supposed to not take the form late but I think I will file it anyway. I dont owe any tax, pay more tax in Canada than US.

dgreenleaf · Post by **dgreenleaf** » Wed Apr 11, 2012 6:01 pm

The 1040X I am looking at has boxes for 2011, 2010, 2009, and 2008 only. But, it also has a line just under that where you can fill in the year.

My read is that the 1040X + 8891 back file is not an official solution, but one that at least gets the paper work in your file and demonstrates some good faith. Especially if no taxes would have been owed with election and at most a small amount if no election taken.

reiver416 · Post by **reiver416** » Wed Apr 11, 2012 6:06 pm

Okay, sorry I didnt see that. Well good luck to us both!

nelsona · Post by **nelsona** » Thu Apr 12, 2012 6:16 am

When the rev proc giverning 8891 was issued, instructions were to go back six years for the election.

RPP's a re not RRSPs, thus not covered by 8891.

dgreenleaf · Post by **dgreenleaf** » Thu Apr 12, 2012 7:40 am

So, back file 6 years and the first year shows the election (i.e. 6c is checked). But, what do I do for this year? Do I make the election this year, too since I have not previously and have not back filed anything yet?
Thanks,

nelsona · Post by **nelsona** » Thu Apr 12, 2012 9:46 am

You need to file the others first. There is no rush to file this year's.

reiver416 · Post by **reiver416** » Thu Apr 12, 2012 9:48 am

Nelsona, do you know what the filing requirements are for RPPs??

YankNucks · Post by **YankNucks** » Sun Apr 15, 2012 7:51 am

[quote="nelsona"]You need to file the others first. There is no rush to file this year's.[/quote]

So for those of us about to file for 2010 who need also to backfile 8891s as well as TDRs, I guess we should:
1. file an extension for this year.
2. do the backfile for the 8891s we missed, and in the first year of the series, check the "No" box for "have not yet checked the election", for the first year.

Then file our 2011 tax return late.

Then, figure out the TDRs.... in time for June 30

(Why did I pay a CPA for the last 4 years? This is ridiculous - no response required)

tsanaha · Post by **tsanaha** » Sun Apr 15, 2012 8:18 am

http://hodgen.com/rrsp-solution-i-am-pr ... o-the-irs/