RRSPs and getting into compliance

Needhelp2014 · Post by **Needhelp2014** » Mon Jun 23, 2014 1:42 pm

I've been trying to sort through this issue and was hoping for some clarity.

Moved to US about 15 years ago. Closed all accounts in Canada before leaving except for RRSP and Locked-in RRSP accounts. Have not touched these accounts since leaving Canada.

Did not know about the FBAR and 8891 filing requirements for these accounts.

To get into compliance with the Treasury and IRS, is this what I need to do?

--> Back file FBARs and 8891s for the last 6 years

Is there anything else I need to do? I have seen something about a deferral election that requires a private letter ruling. Is required?

nelsona · Post by **nelsona** » Mon Jun 23, 2014 1:53 pm

You will need IRS permission to do all these things. There are many threads on this.

Needhelp2014 · Post by **Needhelp2014** » Mon Jun 23, 2014 2:11 pm

Hi Nelsona,

Thanks for your response.

By IRS permission, do you mean a PLR?

This thread is the closest and most recent I've found that covers my circumstances and it's not clear if a PLR is needed or just backfiling the 8891 and FBARs with a "reasonable cause letter".

Needhelp2014 · Post by **Needhelp2014** » Mon Jun 23, 2014 2:12 pm

Forgot the link:

http://forums.serbinski.com/viewtopic.p ... ter+ruling

nelsona · Post by **nelsona** » Mon Jun 23, 2014 2:16 pm

Streamlined processing was not available to US residents in the past. There are upcoming changes to the OVDP process that might help you.

Look at this thread:
http://forums.serbinski.com/viewtopic.php?t=8543

Needhelp2014 · Post by **Needhelp2014** » Mon Jun 23, 2014 2:34 pm

Hi Nelsona,

Thanks again.

So it looks like I should follow the procedures outlined in the Streamlined Domestic Offshore procedures:

http://www.irs.gov/Individuals/Internat ... ted-States

Is this correct? Does this mean I should submit the 5% Title 26 penalty with the submission? Is there any way to reduce/eliminate that penalty?

What are the upcoming changes to the OVDP process you are referring to?

nelsona · Post by **nelsona** » Mon Jun 23, 2014 2:47 pm

Read the thread. That's all I'll say on the matter.

Needhelp2014 · Post by **Needhelp2014** » Mon Jun 23, 2014 7:35 pm

Hi Nelsona,

Thanks again for the info you provided.

When you said "There are upcoming changes to the OVDP process that might help you" were you referring to the changes that went into effect on June 18 as referred to in the thread or are there other expected changes?

nelsona · Post by **nelsona** » Mon Jun 23, 2014 9:36 pm

Please read my previous post.