I would appreciate any comments on whether anybody has had trouble filing form 8891 elections late. SEE
http://www.moodystax.com/blog/33-us-tax ... u-had.html
Not making elections on timely basis
Moderator: Mark T Serbinski CA CPA
Don't be fooled by those (particularly US-baed cpa's) who want you to first file a PLR to ask permission to back-file 8891. This is a money grab pure and simple. It's disgusting.
I have been helping Cdns back file Rev proc 2002-23s and 89-45s and 8891's for ELEVEN years and have NEVER heard of anyone being refused.
I have been helping Cdns back file Rev proc 2002-23s and 89-45s and 8891's for ELEVEN years and have NEVER heard of anyone being refused.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
I am still confused about how far back to file f8891s, despite having now read everything on this board (and a lot of material elsewhere).
One view seems to be with no tax owing, ever, this is a situation in which it is appropriate to simply file three years of 1040s, 8891s, and tdfs.
The other view seems to be that without backfiling f8891s through 2004 (their first year) and then backfiling under previous treaty procedures to some earlier date (can't tell what that would be -- date RRSP first opened?), income accumulated in RRSPs during years for which no elections had been filed would either be treated as unreported offshore income that would trigger tax and other penalties, and/or be treated as taxable income in future years once payments out of the RRSPs might begin.
I would like to make up my own mind on this but cannot put my finger on any authority that would provide guidance as to the correct route.
Would it be reasonable to take ffurther steps to address the RRSP issue once three years are caught up
?
One view seems to be with no tax owing, ever, this is a situation in which it is appropriate to simply file three years of 1040s, 8891s, and tdfs.
The other view seems to be that without backfiling f8891s through 2004 (their first year) and then backfiling under previous treaty procedures to some earlier date (can't tell what that would be -- date RRSP first opened?), income accumulated in RRSPs during years for which no elections had been filed would either be treated as unreported offshore income that would trigger tax and other penalties, and/or be treated as taxable income in future years once payments out of the RRSPs might begin.
I would like to make up my own mind on this but cannot put my finger on any authority that would provide guidance as to the correct route.
Would it be reasonable to take ffurther steps to address the RRSP issue once three years are caught up
?
When ReV Proc 2002-23, was issued, which was the statrt of 8891, the provision was to back file 6 years, so I do not know why there would be any need to deviate from this -- IF you filed returns for 6 years.
If you instead backfiling everything, then 3 yearsshould suffice.
The issue becomes did you file a return tha tdid not properly exclude RRSP income, or elect to defer.
If you instead backfiling everything, then 3 yearsshould suffice.
The issue becomes did you file a return tha tdid not properly exclude RRSP income, or elect to defer.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best