How do I report my RESP accounts to the IRS ?

waterwingz · Post by **waterwingz** » Sun Apr 17, 2005 1:18 pm

While the topic of Canadian RRSP's is well covered here, I cannot seem to find a definitive answer on how to report RESP's to the IRS. I understand that capital gains in the account must be reported as income each year. And that you need to identify the accounts with your TD F 90-22.1 filing.

Do I also need to file forms 3250 and/or 3250-A ? (i.e. are they a considered to be a trust ?)

And if I need to file 3250/3250-A forms, any advice on how to get the necessary information ?

Thanks !

Tony

nelsona · Post by **nelsona** » Sun Apr 17, 2005 9:02 pm

The income needs to be reported, it is a foreign account subject to TD F 90 reporting, the RESP is a trust requiring 3520/3520-A reporting, and your guess is as good as mine as to how to get this info.

nelsona non grata... and non pro

MaggieA · Post by **MaggieA** » Mon Apr 18, 2005 7:29 am

Unhappily, remaining an RESP subscriber while residing in the US seems like more trouble than it's worth. Although both Canada and the US offer government-sponsored tax-deferred plans for educational savings, since these plans are not addressed by the Canada-US tax treaty, it is practically impossible for a family moving back-and-forth across the border to get much benefit from them.

I rolled my daughter's RESP into a family plan opened by my parents and traded her interest in it for cash which we invested in the US. Our Canadian nephews will use the RESP.

waterwingz · Post by **waterwingz** » Mon Apr 18, 2005 7:47 am

I'm not so much worried about getting the money out as in what to tell the IRS. Form 3520-A asks for all kinds of information that I don't have and don't know how to get. I can't imagine the TD Canada Trust mutual fund I used providing that kind of data. I'm guessing that's part of why they produced the 8891 form for RESP's.

What have others done when filing ? Can you simply turn in an incomplete 3520-A ? What does the IRS do when you tell them you can't get the information they demand ?

MaggieA · Post by **MaggieA** » Mon Apr 18, 2005 5:40 pm

I didn't misunderstand your concern i.e. difficulty of IRS reporting. I had the same issue. So I solved it by getting rid of the account.