*****IRS removes form 8891****
The Internal Revenue Service (IRS) announced that it is eliminating the formal requirements that Americans had to comply with every year when filing their U.S. tax returns to claim a deferral of U.S. tax on the undistributed income earned within these plans. Participants in these plans will now automatically qualify for U.S. tax deferral.
Also easing the situation, the IRS says taxpayers who failed to comply with the formal requirements in prior years will be treated as having retroactively made valid elections to defer U.S. tax on their Canadian plans, as long as they meet certain conditions.
The IRS announced this new policy in Rev. Proc. 2014-55, released on October 7, 2014.