Cross Border Tax Q&A – Tax Forms For RRSPs in the US?

Posted on 09. Jun, 2010 by in Cross Border Tax Q&A



Question

Hi Phil

My US accountant told me that my Canadian RRSPs are not taxable in the US, however someone told me that I need to file a TD9022 to report the RRSPs. Does this form exempt tax on the RRSPs? I moved to the US from Canada 3 years ago.

Thanks

XXXXXX

Answer

Hi XXXXXX

Your friend was correct that you would have to file a TDF 90-22.1 with your US tax return to claim the RRSP as long as you had foreign accounts that totaled more than $10,000 USD. If the value of your total accounts (including non-registered accounts) does not exceed $10,000 the TDF 90-22.1 is not required. Be sure to file this form as the penalty associated with not filing is $10,000 (I haven’t actually seen the IRS impose this penalty, however I’ve heard of other that have).

Possibly more important is the required filing of a form 8891. The deferral of RRSP income is not automatic for US purposes and this form needs to be filed to defer such income.

If you haven’t been filing these forms I suggest you discuss it with your current accountant and get caught up.

Hope that helps

Regards

Phil Hogan, CA
250-661-9417

___________________________________________________________________

If you would like to reach me to discuss a tax or accounting matter please call 250-661-9417 or email me at phil@philhogan.com.

The accounting and tax information provided on this website is for informational purposes only and does not represent binding professional advice. Appropriate tax treatment and advice will depend on an individuals particular circumstances and set of facts.

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3 Responses to “Cross Border Tax Q&A – Tax Forms For RRSPs in the US?”

  1. Joline4T

    10. Aug, 2010

    Hi

    Great info on the site. Question for you. Can I file the 8891 forms late to the US? If so what is the process and if not what are the potential penalties?

    Thanks

  2. Phil Hogan, CA

    20. Aug, 2010

    Hi Joline

    You can file them late and in most cases the IRS will not assess a penalty is they are accompanied by a 1040x.

    Call me at 250-661-9417 if you need any help.

    Regards

  3. Julie2010

    15. Mar, 2011

    Hi

    I did not know file 8891 in the past 5 years as I did not know. Should I complete a 8891 form for each missed year?

    Thanks,

    Julie

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