RRSP and form 8891
Moderator: Mark T Serbinski CA CPA
RRSP and form 8891
From the Issac Brock Society website:
Phil Hodgen has some good news for the Canadians in the audience:
Up to now the way to fix an unreported RRSP problem was by incurring brain damage, spending lots of money, or suffering through terminal uncertainty and fear. Or all of the above … Guess what. Things have changed for the better. I’m serious. We confirmed today in a phone call with Chief Counsel’s office that amended tax returns will be allowed with Form 8891 attached.
In other words, a seemingly pointless waste of paper the IRS issued to one taxpayer early this year may have unforeseen historical significance: it is quite possibly the last “late RRSP election†Private Letter Ruling that will ever be made.
Phil Hodgen has some good news for the Canadians in the audience:
Up to now the way to fix an unreported RRSP problem was by incurring brain damage, spending lots of money, or suffering through terminal uncertainty and fear. Or all of the above … Guess what. Things have changed for the better. I’m serious. We confirmed today in a phone call with Chief Counsel’s office that amended tax returns will be allowed with Form 8891 attached.
In other words, a seemingly pointless waste of paper the IRS issued to one taxpayer early this year may have unforeseen historical significance: it is quite possibly the last “late RRSP election†Private Letter Ruling that will ever be made.
That is good news. Of course, I ALWAYS suggested bypassing PLR's up until Jan 2013, when IRS made it mandatory, but IRS has quickly come to their senses.
The big firms had been forcing thr clients the unnecessary expense of PLR for years,. I'm gald to see one cpa fight to close wheat was a pretty lucrative exercise for themselves.
Good ethics from Phil Hogden! Wish the other had followed suit years ago.
The big firms had been forcing thr clients the unnecessary expense of PLR for years,. I'm gald to see one cpa fight to close wheat was a pretty lucrative exercise for themselves.
Good ethics from Phil Hogden! Wish the other had followed suit years ago.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I am not familiar with any official pronouncement in January 2013 that states that PLRs ARE required for late 8891s. Similarly, I am not aware of any official announcement by the IRS now that PLRs are NOT required for late 8891s. It somehow doesn't seem official when you hear about it on a tax bulletin board that says it was posted on a blog that says some advisor spoke with someone at the IRS who said you don't need to get a PLR anymore. As you said in your May 30, 2013 post: "IRS are always giving wrong info." http://forums.serbinski.com/viewtopic.php?t=7635
Hopefully the Chief Cousel's office would give accurate information, but without any official pronouncement, who knows?
Hopefully the Chief Cousel's office would give accurate information, but without any official pronouncement, who knows?
The "announcement" that back-filing 8891 was no longer permitted for making an election was made when the new form was relaeased in december 2012. The new instructions clearly stated this for the first time.
So, no misinformation here.
So, no misinformation here.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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@nelsona:
"That is good news. Of course, I ALWAYS suggested bypassing PLR's up until Jan 2013, when IRS made it mandatory, but IRS has quickly come to their senses. "
So is PLR required for late election or not?
I just saw an accountant who charges a *lot* and says this is all he does - Cross Border taxes. He said he's been backfiling 8891s with late election + reasonable cause letters and throughout the past 2 years he hasn't had a problem or should I say his clients haven't had any, with the IRS... yet?
"That is good news. Of course, I ALWAYS suggested bypassing PLR's up until Jan 2013, when IRS made it mandatory, but IRS has quickly come to their senses. "
So is PLR required for late election or not?
I just saw an accountant who charges a *lot* and says this is all he does - Cross Border taxes. He said he's been backfiling 8891s with late election + reasonable cause letters and throughout the past 2 years he hasn't had a problem or should I say his clients haven't had any, with the IRS... yet?