8891 Reporting Changed Acct. Number

Newdual · Post by **Newdual** » Thu Nov 22, 2012 10:45 pm

Well, just as I thought I had things under control, a wrench in the wheelworks:

My bank (Scotiabank) changed my RRSP account number because my old account number was not compatible with their new software. Apparently, their software would not accept my existing number. They gave me no notification of this and I only found out when I signed on-line and saw it was different. There were no changes to the existing account, other than this new number. I am now left wondering how to deal with reporting this to the IRS, since I have been faithfully reporting the old number number on Form 8891 and on the FBAR's.

i have thought of asking the bank for a letter stating exactly what they did and that they assigned a new number to an existing and unchanged account. I would then attach this letter to my 8891 with the new number and to my FBAR reports. Does this seem like it would be a logical solution? I am terrified that the IRS will think I have somehow magically depleted my RRSP and they will expect me to pay taxes.

Additionally, for the FBAR, does this mean I have to report the old account number with the total amount and then the new account number with the total amount, thus double reporting on the same account?

Has this recently happened to anyone else dealing with Scotiabank?

Newdual · Post by **Newdual** » Thu Nov 22, 2012 11:16 pm

Sorry - I actually did some more searching and found the answer to my questions on an earlier post on this forum (March 2012). It seems that indeed I will have to file TWO 8891's for the same account, one showing a $0 balance and the new account number with the proper amount. I still plan to get a letter from the bank stating what they did because I do not trust the IRS to make the proper connection between the two different numbers for the same account.

It also appears that I will have to show the two account numbers with the highest balances for the FBAR, thus actually double-reporting for a single account.

Please, Mr. Serbinski, if you get a chance, would you mind jotting a quick note just to confirm what I wrote? I really appreciate all the information this forum provides and all the work you do to answer our questions.

nelsona · Post by **nelsona** » Fri Nov 23, 2012 10:27 am

serbinski doesn't write much here, I do.

Your assesment is correct, since it repeats what I say.

Newdual · Post by **Newdual** » Fri Nov 23, 2012 10:44 am

Thank you, nelsona, you're a wealth of knowledge and information.

Mach7 · Post by **Mach7** » Fri Nov 23, 2012 12:08 pm

And would one also have to check off the box for "2" 3520 forms on Part 3 of the 8938 since you are technically filing two 8891 forms....(?) (if your net worth is such that this form is required).

Also, thanks NewDual for bringing this up as it made me realize that my account numbers were also changed in August of 2012.

I too will have to file two separate 8891s, two balances for the FBAR and ensure I tabulate correctly on my 8938 form for the upcoming 2012 taxation year.

Unless I read your post I would have been filing inappropriatly come tax time...

Still confused as to why you would tabulate your first 8891 (old account number) as "0" on the 8891, and then the highest balance for that year on the second 8891 with the new account number.

I would think that you would have to apply the highest balance on both (?)

nelsona · Post by **nelsona** » Fri Nov 23, 2012 12:53 pm

8891 only requires year-end balance. the old account will be '0', the new account will be its value on dec 31.

nelsona · Post by **nelsona** » Fri Nov 23, 2012 12:53 pm

FBRA requires highest value within year.

Newdual · Post by **Newdual** » Fri Nov 23, 2012 5:20 pm

I actually didn't finish my sentence correctly when I typed: "one showing a $0 balance and the new account number with the proper amount".

Should have written the following regarding filing two 8891's: "one with the old account number showing a $0 balance and one with the new account number with the current value." My FBAR's will both probably have the same highest balance showing.

Also, as of now I don't have to file the FATCA 8938 because I live in Canada (Dual Cdn/US), do "married filing separately" since spouse is Canadian only, and I am not near the $200,000 FATCA amount anyway.

Newdual · Post by **Newdual** » Fri Nov 23, 2012 5:31 pm

My reading of the instructions for the RRSP's filed on Form 8891 is that 3520's don't have to be filed - in my case anyway. Please don't tell me I messed that up, too!!

Mach7 · Post by **Mach7** » Fri Nov 23, 2012 7:19 pm

Newdual,

Sorry..didn't mean to alarm you with the reference to 3520 forms. In fact the 8891 replaces the 3520 form for RRSP purpose only.

I was referring to the Fatca form 8938. If one files an 8891 form, you need not list it on 8938, but rather just tick off a box on part 3. Not sure why they did not include a box on this form for 8891's, however they didn't but tell you to use the box identified as 3520.

It looks like you have to reporting responsibility on this form anyway, so it would not apply to you.

Also for Nelsona...thanks for clarifying the FBAR and 8891 amount tabulations....i knew that but somehow forgot.

nelsona · Post by **nelsona** » Wed Nov 28, 2012 9:10 am

Yes. fbar is not so much for report how much you have, but more for where it is.