US resident with RRSP accounts -

Dear Mr. Ingram,
I've heard along some grapevines that Canadian citizens with
RRSP's living in the US have to report it even if no
contributions or withdrawls were made.  We've been in the states
for 10 years now, officially green card holders since May 2002
and TurboTax never gave us a clue that this was ever necessary.
I've heard of nasty penalties, fines and jail time and that's got
us trying to find more info and how far back do we have to report
with which forms and to whom.  Any further info would be greatly
appreciated...along with a quote for you to help us I'd be in
heaven.
Thank you so much!
=============================
 david ingram replies:
Reporting your RRSP accounts has been mandatory since 1989 and
carries penalties of up to $500,000 plus 5 years in jail under
one set of rules and 35% of the principal plus 5% a year that it
is not reported under another set of rules.  To make you feel
better, I have only seen two people penalized in the last ten
years, although over 1,000 US residents  who dealt with a
Vancouver Consultant named Jerome Schneider are in the process of
being charged.  Jerome charged up to $15,000 US to help Americans
hide their money offshore so they were willing participants and
likely deserved to be charged.
So far, we have not had a single person have a problem when we
have filed these reports as a catch-up.
Our charge for this catch up for 2004 and 2005 wood likely be
from $400 to $800 depending upon the number of RRSP accounts,
etc.
For instance, one yesterday had 18 RRSP's and our charge was
$900.00.
The following gives you a bit of an idea, of what and how we
charge as a guideline.
This is not intended to be definitive but in general I am quoting
$800 to $2,000 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips
and you lived in one country only - no self employment or rentals
or capital gains - you did not move into or out of the country in
this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 would be the minimum with a move in or out of the country.
These are complicated because of the back and forth foreign tax
credits. - The IRS says a foreign tax credit takes 1 hour and 53
minutes.
$1,500 would be the minimum with a rental or two in the country
you do not live in or a rental and a business and foreign tax
credits  no move in or out
$2,000 would be all of the above and you moved in and out of the
country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US
connection period) with a three or four slips and no capital
gains, etc. for $100 or $125.00
With a Rental for $300
A Business for $300 - Rental and business likely $400
And an American only (lives in the US with no Canadian income or
filing period) with about the same things in the same range with
a little bit more if there is a state return.
.TDF 90-22.1 forms are $25 for the first and $10.00 each after
that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
Capital gains *sales)  are likely $50.00 for the first and $20.00
each after that.
Just a guideline not etched in stone.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week  Vancouver (LA)
time -  (please do not fax or phone outside of those hours as
this is a home office)
email to taxman at centa.com
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 for expert help, assistance,
preparation, or consultation  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"
.
.
This from "ask an income tax and immigration expert" from
www.centa.com or www.jurock.com or www.featureweb.com. David
Ingram deals on a daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems
for the United States, Canada, Mexico, Great Britain, United
Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan,
China, New Zealand, France, Germany, Spain, Italy, Russia,
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US, UK, GB, and any of the 43 states with state tax returns, etc.
Rockwall, Dallas, San Antonio Houston
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and
Immigration Tips, Income Tax  Immigration Wizard Antarctica
Rwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6 NR-6
NR 6 Non-Resident Real Estate tax specialist expert preparer
expatriate anti money laundering money seasoning FINTRAC E677
E667 105 106 TDF-90 Reporting $10,000 cross border transactions
Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US
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international non-resident cross border income tax help
assistance expert preparation & immigration consultant david
ingram, experts on rentals mutual funds RRSP RESP IRA 401(K) &
divorce preparer preparers consultants
David Ingram specializes in giving expert income tax and
immigration help to American and Canadian citizens living out of
their home countries from Zimbabwe to Saudi Arabia to Mexico to
China or Chile - Cross border, Non-resident - dual citizen - out
of country investments are all handled with competence and
authority.
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