RRSP step up cost basis for cash?

Jaspal · Post by **Jaspal** » Fri Jul 01, 2011 1:07 pm

Yes, I did file 8891 first few years. I thought it was needed only once, and then it applies to all subsequent years until a distribution is taken. I have never taken any distribution. I guess I can begin to file them again. I have always included this in TDF filings though.

nelsona · Post by **nelsona** » Fri Jul 01, 2011 1:19 pm

Sigh.

You need to back-file for the years you missed. You are subject to penalty for not filing 3520 if you do not file 8891 instead.

tsanaha · Post by **tsanaha** » Fri Jul 01, 2011 1:42 pm

nelsona,

If (just IF) IRS won't let me back file f8891 inside OVDI, would I be suject to penalty for not filling 3520 ?

nelsona · Post by **nelsona** » Fri Jul 01, 2011 1:52 pm

Of course you would be subject to penalty. That was one of the 2 reasons to file 8891.

Foreign Trust reporting is required every year.

tsanaha · Post by **tsanaha** » Fri Jul 01, 2011 1:59 pm

thanks, and understand now...

ovdi ruling may likely take long time to resolve.. what i should do is to file f8891 next year (for 2011) as i had done all from 2003 to 2010 inside OVDI.

one technical problem is the election year. i would have to use the election year on what i filed inside OVDI even before IRS' decision (it may take more than a year).

Otherwise, I would have another year for non-filing f8891.

nelsona · Post by **nelsona** » Fri Jul 01, 2011 2:05 pm

Oh, what a tangled web we weave... when we let common sense and questioning attitude take their leave.

tsanaha · Post by **tsanaha** » Sat Jul 02, 2011 4:05 am

sorry, i was so stupid to bring up the issue.

IRS can never reject me back file f8891 on RRSP as this is the form designed for RRSP only. However, IRS can still reject my back years election.