Part II - TDF 90-22.1 forms

Thank you for your e-mail re the filing of TDF 90-22.1 reports, David.  We sent in the TDF 90-22.1 forms, in accordance with your instructions, but XXXXX did not file a Schedule B on his tax return because he had no interest or dividend income in 2006.  The interest income from all our joint accounts and GICs was my money when we were married and I reported it as my income.  Should this be revised since he is a joint owner with full signing authority on all my accounts and we showed him as having a financial interest in all of them?  We have an appointment with you on June 27th to do XXXXXX's Canadian/US tax returns so, if something more has to be filed, can we leave it until then?   Thank you once again for keeping us informed on all this! ----------------------------------------------------------------------------------------------- david ingram replies:

During the phone conference (which was world wide) the two IRS participants made it clear that a Schedule B should be filed by anyone with out of the country accounts so that the two questions on the bottom of schedule B were filled out.

Later on, when a question was asked by a practitioner abouit whether or not to file a 1040X with a schedule B, the male IRS agent clearly said not to bother retroactively, if they had caught up with the TDF 90-22.1 forms which they kept on referring to as "T bar" forms In other words, there was a bit of backpedaling.  However, in my lexicon, since the broadcast was NOT binding on the IRS, but was an attempt to bring practitioners up to speed on the requirements and dealt with some pretty esoteric stuff, my inclination would be to file a 1040X with a properly filled out Schedule B.

You can leave it until the 27th.

As an aside, they dealt with the signing authority of an account because a taxpayer is a controlling shareholder and "could" take control of an account.  They were really clear that if A signs accounts for XYZ company and XYZ company controls another company NOP that has a foreign account in Canada, France, Germany, Japan, etc., that A needs to fill in a T D F 90-2.1 for NOP's foreign accounts because A has the ability to become a signing authority.