Obsolete form 8891 and question to line 8 on schedule B

Frankd1 · Post by **Frankd1** » Fri Mar 06, 2015 2:55 pm

I was just wondering how the now obsolete form 8891 affects the answer to line 8 on schedule B?

Here's the scenario: a US Citizen lives and works in Canada as Canadian PR. They have been filing form 8891 for their RRSP from day one making the election to defer on the first form.
Even though they did not otherwise file form 3520 they still would checked off the yes box on line 8 of schedule B as they were filing 8891 for the RRSP

Now that form 8891 is no longer required do things change with respect to line 8?

1. Assuming that they meet the threshold for filing 8938, they include the RRSP on that form and they still check off the yes box on line 8/schedule B. This makes sense.

2. If they do not meet the filing threshold for 8938 and therefore do not show the RRSP there or anywhere else (other than FBAR), do they still check the yes box on line 8 sched B?
I would be inclined to say yes because nothing has changed with their status regarding the RRSP - they still have it, the only thing that has changed is on the IRS end of things by eliminating one form.
Would checking the line 8 yes box for the RRSP with no 8938 raise any questions? By that I mean, where does the IRS look to verify the yes answer on line 8? Previously they would have the 8891 to reference, now if there is no requirement for 8938 or 3520 what do they reference?

Thoughts?

nelsona · Post by **nelsona** » Fri Mar 06, 2015 7:07 pm

It doesn't change. You stil have a foreign trust. You are still not required to submit 3520, just as it has always been, since 8891 was introduced.

nelsona · Post by **nelsona** » Fri Mar 06, 2015 7:11 pm

That is for schedule B.

For 8938, follow the instructions CLEARLY written for RRSPs.

But the answers for Schedule B, have nothing to do with 8938, and are unchanged by the deletion of Form 8891.

Frankd1 · Post by **Frankd1** » Fri Mar 06, 2015 9:59 pm

Thanks nelsona, thats how I understood it as well.

My wife will continue to answer yes for line 8 schedule B, as she has always been doing.

As for 8938, she is no where near the threshold (200k/300k) for filing the form so we will not be including it with this years return.

Thanks again.