How to fix RRSP and FBAR problems left by a paid accountant

tobeagoodman · Post by **tobeagoodman** » Sat May 19, 2012 7:30 am

I am a canadian and moved into the USA 3 years ago and my family moved into the USA this year. I have had my US and Canadian tax returns filed by a professional accountant since I moved into the USA. I have just realized recently that the accountant oversighted some important tax stuff in my tax return. The problems left by the accountant are as follows:

1. Though the accountant filed 8891 for me in 2008, 2009 and 2010, he only filed 8891 for the RRSP I purchased in the year. For example, in 2010 tax return, he filed 8891 only for the RRSP I purchased in 2010. He also did not tell me that I had to file 8891 for all RRSP I have and therefore I did not reveal that I had other RRSP purchased before I moved into the USA. So the problems are: a. I did not file 8891 for all my RRSPs purchased before 2008; b. I only filed 2008, 2090 and 2010 RRSP once in the year when the RRSP was purchased.

2. The accountant filed the Schedule B for me in these few years to report the interest from my bank accounts in both the USA and the Canadian banks. However he never filed form TD F90-22.1 for me and also never told me anything about the TD F90-22.1.

I have surfed the internet for quite a while recently in reading related online info regarding the RRSP and the TD F90-22.1. As per my understanding, to fix what missed by the accountant, I have to

1. File the 1040X with 8891 for all RRSPs for 2008, 2009 and 2010, besides 2011;

2. File TD F90-22.1 form for 2008, 2009, 2010 and 2011, including all RRSPs. Also file 8938 for 2011.

I understand, it is possible for me to face penality for failure to file the 8891 and the TD F90-22.1. I have to attach a letter to explain why the forms are filed late.
My questions are:

1. what esle I have to do to fix the problems besides what listed above?

2. Is the accountant oversith a reasonable cause for my late/missed filing of 8891 and F90-22.1?

3. Should the accountant take any legally responsibility for the oversight, if I am fined by the IRS or by the Treasury?

Thanks for any feedback/advice!

nelsona · Post by **nelsona** » Sat May 19, 2012 7:36 am

1. Review your schedule b. make sure you correctly answered the questions at the bottom.

2. Sure. Especially if he is listed on the retirn as the preparer.

3. No idea. the fact that you did not tell hime about all your accounts is your failure.

tobeagoodman · Post by **tobeagoodman** » Sat May 19, 2012 6:43 pm

[quote="nelsona"]1. Review your schedule b. make sure you correctly answered the questions at the bottom.

2. Sure. Especially if he is listed on the retirn as the preparer.

3. No idea. the fact that you did not tell hime about all your accounts is your failure.[/quote]

Hello, Nelsona,

Thank you very much for your answers to my questions.

I am preparing to fix the problems soon. Actually I did not know anything about the 8891 and the TD F90-22.1 as I paid no attention to the tax matter and relied on totally the paid accountant.

After I sent out my post, I checked what the accountant filed for my RRSPs in these few years and noticed that he used only one account number which was not my RRSP accountant number at all. Do you think this make fixing more complicated?

To clear up the mess, do you think if I have to find another tax accountant to do the job for me or it is ok for me to fix the problems?

Thank you a lot!