Form 8891 questions here please!!!!
Moderator: Mark T Serbinski CA CPA
Form 8891 questions here please!!!!
No changes from the draft copy
http://www.irs.gov/pub/irs-pdf/f8891.pdf
IRS has recently announced a new Form 8891 to report/defer yearly RRSP income.
Its release date has been pushed back several times, but <b>it will be required for the 2004 tax return.</b>
Its aim is to consolidate all the Revenue Procedures and Notices that have appeared over the last 15 years.
Watch this space for further announcements.
<i>nelsona non grata</i>
http://www.irs.gov/pub/irs-pdf/f8891.pdf
IRS has recently announced a new Form 8891 to report/defer yearly RRSP income.
Its release date has been pushed back several times, but <b>it will be required for the 2004 tax return.</b>
Its aim is to consolidate all the Revenue Procedures and Notices that have appeared over the last 15 years.
Watch this space for further announcements.
<i>nelsona non grata</i>
The release date has ben pushed back until Feb 7th. I would not expect it to be released on that date either given IRS track record.
<u><b>Form 8891 and e-file</b></u>
Remember, 8891 is not part of either off-the-shelf software packages, and thus will not be e-filed. I would suggest that any requiring this form who are now waiting to e-file, GO AHEAD and e-file, especially if you are not going to report any RRSP income from 2004 (ie. are using the deferral and have not made any RRSP withdrawals).
All of us will have to submit 8891 on paper separately from or e-file anyways. This has worked in previous tax years for the RP 89-45 and 02-23 statements.
Those of you are ARE reporting income (either because you elect not to defer yearly, or are reporting partial taxation of an RRSP withdrawal on 16 b of 1040) should probably wait at least until the form instructions are released, just to avoid any surprises.
<i>nelsona non grata</i>
<u><b>Form 8891 and e-file</b></u>
Remember, 8891 is not part of either off-the-shelf software packages, and thus will not be e-filed. I would suggest that any requiring this form who are now waiting to e-file, GO AHEAD and e-file, especially if you are not going to report any RRSP income from 2004 (ie. are using the deferral and have not made any RRSP withdrawals).
All of us will have to submit 8891 on paper separately from or e-file anyways. This has worked in previous tax years for the RP 89-45 and 02-23 statements.
Those of you are ARE reporting income (either because you elect not to defer yearly, or are reporting partial taxation of an RRSP withdrawal on 16 b of 1040) should probably wait at least until the form instructions are released, just to avoid any surprises.
<i>nelsona non grata</i>
Form 8891 is still nowhere near being posted, and its author Willard Yates, has advsed some in the industry to merely file Statements in compliance with RP 02-23 and Notice 03-75, as last year.
As I have said previously, neither the statements not the Form are part of any commercial software package, and would have to be prepared separately.
E-filing is still possible with either method, just send them along a month later with a 1040-X.
<i>nelsona non grata</i>
As I have said previously, neither the statements not the Form are part of any commercial software package, and would have to be prepared separately.
E-filing is still possible with either method, just send them along a month later with a 1040-X.
<i>nelsona non grata</i>
Hi All
The question I have is on line 8.
If you checked the “Annuitant” box on line 5, the “Yes” box
on line 6a
I guess I'm just Misunderstanding this part because of no and/or statement in the question, but does both things listed above need to be True, or just one? too stop here.
In my situation I have the Beneficiary and the yes box checked on line 6a.
The question I have is on line 8.
If you checked the “Annuitant” box on line 5, the “Yes” box
on line 6a
I guess I'm just Misunderstanding this part because of no and/or statement in the question, but does both things listed above need to be True, or just one? too stop here.
In my situation I have the Beneficiary and the yes box checked on line 6a.
Actually it says:"If you have checked the "Annuitant" box on line 5, the "Yes" box on line 6a, <u><i><b>or</b></i></u> the box on line 6c, stop here"
Seems pretty clear to me, if any or all of these apply, stop here.
In other words, if you are a "beneficiary", <u>and</u> have not made the election, <u>and</u> are <u>not</u> making the election this year, fill in lines 9 and 10, and add the income to your return. otherwise stop at 8.
<i>nelsona non grata</i>
Seems pretty clear to me, if any or all of these apply, stop here.
In other words, if you are a "beneficiary", <u>and</u> have not made the election, <u>and</u> are <u>not</u> making the election this year, fill in lines 9 and 10, and add the income to your return. otherwise stop at 8.
<i>nelsona non grata</i>
Re currency conversion, I believe you can use any reasonable source for the rate. Here is one:
http://www.bankofcanada.ca/en/exchform.htm
Just enter the date you need (Dec 31 2004 in this case) near the bottom of the form. Otherwise it gives you the current rate.
Thanks to quick notification of 8891 availability on this forum, I mailed off my 1040X with 8891s attached on Saturday already. All done for 2004!
http://www.bankofcanada.ca/en/exchform.htm
Just enter the date you need (Dec 31 2004 in this case) near the bottom of the form. Otherwise it gives you the current rate.
Thanks to quick notification of 8891 availability on this forum, I mailed off my 1040X with 8891s attached on Saturday already. All done for 2004!
Of course.
The form is already mentionned in the 1040 instructions, and in the form 3520 instructions, so IRS is expecting it.
If you've already submitted your paper 1040 (prior to the release) and include a RP 02-23 statement, that is fine.
But if your sending in your 1040 now, the Forms should go with it.
Otherwise, a 1040X with the new forms is in order.
<i>nelsona non grata... and non pro</i>
The form is already mentionned in the 1040 instructions, and in the form 3520 instructions, so IRS is expecting it.
If you've already submitted your paper 1040 (prior to the release) and include a RP 02-23 statement, that is fine.
But if your sending in your 1040 now, the Forms should go with it.
Otherwise, a 1040X with the new forms is in order.
<i>nelsona non grata... and non pro</i>
What is the purpose of line 6C on form 8891? In my reporting of RRSP's to date I have mentioned the Article XVIII(7) but have never used the RP 02-23 text in my reporting. I have used a letter I received from an accounting firm many years ago.
For any previous years where the RP 02-23 was not used would someone need to file the 8891 for those years along with a 1040X?
For any previous years where the RP 02-23 was not used would someone need to file the 8891 for those years along with a 1040X?