Andrew Nelson has pointed out that the 2002-23 is always better than filling
out the 3520A
Andrew - For the record, I have never filled out a 3520-A
david
-----Original Message-----
From: Nelson, Andrew G. [mailto:[email protected]]
Sent: Thursday, September 04, 2003 6:23 AM
To: [email protected]
Subject: RE: US citizen in New Mexico has Canadian RRSPs to
dealwith - Ask an income tax expert experts advisor advisors consultant
consultants Canada US Mexico
David,
A subtle but important point on 3520-A.
You stated that if a client did NOT with draw money from an RRSP/RIF "he
must fill in form 3520A or follow the rules in REV.PROC 2002-23.
Note that while RP 02-23 does indeed satisfy the reporting requirements
of 3520-A, the reverse is not true: filing 3520-A does not trigger the
benefits derived from RP 02-23, namely, deferral of IRS taxation on
internal RRSP income.
So, it is never a good idea to file 3520-A instead of RP 02-23, since RP
02-23 is the ONLY way to get tax deferral. Neither 3520 nor 3520-A do
anything for deferral.
If one is interested in tax deferral (and there are only rare instances
when this would not be a concern) One should ALWAYS choose RP 02-23
instead of 3520-A.
AGN
-----Original Message-----
From: [email protected]
[mailto:[email protected]]
Sent: Thursday, September 04, 2003 01:16
To: CENTAPEDE
Subject: US citizen in New Mexico has Canadian RRSPs to
dealwith - Ask an income tax expert experts advisor advisors consultant
consultants Canada US Mexico
Mr Ingram,
I have a client who is a US citizen and lived in Canada for many years
and has their equivalent to our IRA. They now live in New Mexico. Can
you tell me what their choices are for this money? You can call me at
(877) 456-XXXX.
Thank you.
JXXXXXXX
Financial Consultant
(505)892-XXXX Phone
(505)994-XXXX Fax
=============================
David Ingram replies:
Assuming that the Canadian RRSP accounts total over $10,000, your client
must fill in forms TDF-90 whicxh is a report of foreign financial
accounts and goes to the Dept of Treasury in Detroit. Failure to file
these forms to report foreign accounts can result in fines of up to
$500,000 plus 5 years in Jail.
If your client withdrew any money from these accounts in 2002 he must
fill in form 3520. If no money was withdrawn, he must fill in form
3520A or follow the rules in REV.PROC 2002-23 which can be found at:
www.centa.com, click on newsletters, click on 2003, then read the August
front page for the two most important parts.
Hope this helps, if you need any help doing this for the first year, we
will lok after it for $300.00 Canadian for the first RRSP / RRIF / RPP
and $100 for each additional account. You should be able to copy the
method for subsequent years. Note that more detailed inforamtion will
be requitred on form 3520 for 2003 onward.
If you want help, Contact me at:
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as advice
in any particular circumstances. No contract exists between the reader
and the author and any and all non-contractual duties are expressly
denied. All readers should obtain formal advice from a competent and
appropriately qualified legal practitioner or tax specialist in
connection with personal or business affairs such as at www.centa.com.
If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
.
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