Similar Posts


  1. Good point! Looking forward to hear about your discussion with the IRS in May. I hope the IRS will consider your advice.

  2. @bruno,

    If people are doing this, tell them to return to the other forum to report the end result.

    The correct end result should be that the Austin service center (where they file the amended returns) will bounce the Form 1040X as untimely. I think they are telling the first half of the story: “I boarded the Titanic for a glorious ocean cruise to New York . . . ”

    The IRS service center used to — incorrectly — accept Form 1040X with a late-filed Form 8891 attached. So a few people might have had a lucky break. They (the people running the Austin service center) got yelled at and told to stop accepting a 1040X with a late 8891.

    If they are still accepting Form 1040X with a late Form 8891 attached, well, what can I tell you? Graciously accept your good fortune, keep your mouth shut, and carry on. 🙂

  3. I read from other forum about quite disclosure. Meaning people are back filing 8891 together with 1040x without using private letter ruling.

  4. Unfortunately all of these regulations capture those US citizens who came to Canada (or pick any other country!!) when they were 2 months old and never lived in the US. I recognize that these individuals have the right to enter and live in the US but what if that is not their intention. They never want to go and live the US. There should be an easy program that allows these types of individuals the opportunity to OPT OUT of being considered US persons for all of this tax compliance. Give them the ‘choice’ – retain your rights for residency and comply with the US taxation OR give up your residency rights. I’m guessing most would give up the residency rights!

  5. I agree the US is going to have a hard time applying penalities without a backlash from the local government.

    At the end of the day, if you don’t have any assets or financial connections with the US, the IRS is going to have a tough time enforcing the fines. The IRS can’t put leins on foreign properties or attach your foreign wages so where back to the border situation again.

    They’d be better off going for lower hanging fruit.

  6. You’re absolutely right. There is a desperate need for clear, simple rules. Superannuations from Australia would be a good place to start.

  7. The easiest solution for an unreported RRSP is to do nothing, nothing, nothing. If the United States ever finds out about it, let them apply a draconian fine in violation of the Eighth Amendment (let’s say 300% of the contents) and set off a major diplomatic incident with Canada. Then we can just tear up the NAFTA agreement, Canada can sell its oil to China and India instead, and we can all live happily ever after.

  8. In addition, how about an easy paperwork remedy for folk coming to the US from a country other than Canada? Canada’s arguably the “easy” case, after all. Retirement plans from any other country held by US residents tend to be an order of magnitude harder even than RRSPs. In many cases there’s no clear guidance from the IRS at all, and often disagreement even among professionals. Unlike immigrants from Canada, those coming from other countries may well have English only as their second or third language.

Comments are closed.

Tax laws change over time, and the information in this post above may be less accurate today than it was at the time of the last revision. This post is not tax advice for your specific situation. Please contact an international tax professional to get personalized advice for your situation.