Filed tax returns but not investment information

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cantorg
Posts: 1
Joined: Wed Oct 26, 2011 2:36 pm

Filed tax returns but not investment information

Post by cantorg »

As an American living in Canada (and now a dual citizen) since 1978, I have filed tax returns each year, never making enough money to owe tax. I never realised that I need to declare my RRSP (now about $120,000) since it is not taxed in Canada until withdrawn. Will they take half of it if I now file the proper documents?
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

No. You need to file 8891's for the past 6 yeares, along with FBAR for all your Cdn accounts (bank, rrsp, brokerage, etc).

No tax will be owed and no penalties.
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
dalew
Posts: 1
Joined: Sun Feb 13, 2011 4:15 pm
Location: Phoenix

Post by dalew »

As a US citizen, you should have been filing and reporting your worldwide income, even if you do not have enough income to pay tax.

As was mentioned, you should have filed Form 8891 to defer tax on your RRSPs. If you have TFSAs,or RESPs you should also be filing Form 3520.

For all of the above accounts, as well as your nonregistered accounts, you should have filing Form TD F 90-22.1, also know as FBAR forms.

Contrary to the previous post, you may be subject to penalties for not filing the FBAR forms. The IRS had an amensty program that ended just a little while ago. Now that the amenesty period has past, it is unclear how the IRS will react to late filing of the form.
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

I agree with Nelsons , you owe no tax and you back file 6 years no penaties will be levied. The original deadline of August 31, 2011 has recently been purported in Forbes Nagazine tha the IRS is now extending this deadline to Nov 29, 2011, so if I were you I would certainly file before Nov 29, 2011.
JG
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

dale is a tax pro, so deals in worst case., and is located in US.

Cdns living in canada will not be penalized fro FBAR if they repoerted all income and would noy hav owed any tax.
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
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