Hi Hutcheson & Co. LLP,
I am a U.S. citizen living and working in Canada and I have Canadian RRSP accounts. I have been filing U.S tax returns since I moved to Canada and I recently discovered that I am supposed to report my RRSP’s to the U.S. Is this correct and how many years do I need to go back?
Yes – you are correct. Any U.S. persons that have a Registered Retirement Savings Plan (RRSP) are required to file Form 8891 every year for each RRSP account. Essentially what this form does is elect under Article VXII(7) of the Canada-US Tax Treaty to defer any income that accrues inside the RRSP.
If you are required to file an FBAR, your RRSPs are required to be disclosed on it as well.
Generally speaking, you should go back six years and file amended U.S. tax returns (Form 1040x) for each year and include completed Form 8891 for each RRSP account for each year.
Note however that although the IRS is currently accepting amended FBARs and 1040x returns for missing 8891 and related RRSP disclosures their policies could change at any moment. It’s recommended that you speak to your tax professional before submitting these adjustments.
If you require any further assistance, please contact one of our experienced professionals.
Rob Brown, CA
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