US CITIZENS WITH CANADIAN RRSP, RRIF or RPP Accounts

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-----Original Message-----
From: Yates Willard W
[mailto:[email protected]]
Sent: Monday, August 04, 2003 6:52 AM
To: '[email protected]'
Cc: Yates Willard W
Subject: New Notice
David:
        Here's the new notice.  Thanks, Bill.  2-3164
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Part III - Administrative, Procedural, and Miscellaneous
Canadian Retirement Plan Trust Reporting
Notice 2003-57
Section 1.  General Foreign Trust Reporting Requirements for
Certain Canadian Retirement Plans
Internal Revenue Code section 6048 requires information reporting
with respect to certain foreign trusts.  Persons subject to these
information reporting rules must file Form 3520 (Annual Return to
Report Transactions with Foreign Trusts and Receipt of Certain
Foreign Gifts) or Form 3520-A (Annual Information Return of
Foreign Trust with a U.S. Owner), as applicable.
In Notice 2003-25, 2003-18 I.R.B. 855, Treasury and the Internal
Revenue Service recognized that some taxpayers with interests in
certain Canadian retirement savings plans, as well as the
custodians of such plans, were unfamiliar with the requirements
for filing Forms 3520 and 3520-A.  Accordingly, Notice 2003-25
provides an automatic extension until August 15, 2003, for any
person who is required to file a 2002 Form 3520 or Form 3520-A
with respect to a Registered Retirement Savings Plan ("RRSP"),
Registered Retirement Income Fund ("RRIF") or other eligible plan
within the meaning of section 3 of Revenue Procedure 2002-23,
2002-1 C.B. 744.  Notice 2003-25 further provides that Treasury
and the IRS are considering establishing for future taxable years
a simplified reporting regime for RRSPs and persons with
interests in RRSPs and coordinating the reporting requirements
with the election described in section 4 of Revenue Procedure
2002-23.
Section 2.  Relief from 2002 Foreign Trust Reporting Requirements
for Certain Canadian Retirement Plans
Treasury and the IRS are continuing to work toward implementation
of an alternative, simplified reporting regime for Canadian
retirement plans for future taxable years.   Treasury and the IRS
have concluded, however, that additional relief with respect to
2002 Form 3520 and Form 3520-A reporting requirements should be
provided to RRSPs and RRIFs and their beneficiaries.
First, with respect to the 2002 taxable year, if the beneficiary
of an RRSP or RRIF (a) makes or has made an election with respect
to the plan in accordance with section 4 of Revenue Procedure
2002-23 or section 3 of this notice, (b) complies or has complied
with the annual reporting requirements of Revenue Procedure
2002-23 for the taxable year, and (c) received no distributions
from the plan during his or her 2002 taxable year, then no Form
3520 or Form 3520-A with respect to the plan is required.
Second, an individual, RRSP or RRIF that has filed or files a
Form 3520 or Form 3520-A for the 2002 taxable year that does not
provide all appropriate information may be requested by the IRS
to provide such information.  Unless the IRS requests such
information and the individual or plan fails to provide the IRS
with the information identified in such request, no individual or
plan that has filed or files a Form 3520 or Form 3520-A with
respect to the 2002 taxable year will be subject to failure to
file penalties.  The individual or plan should write the
following on the top of the first page of the Form 3520 or Form
3520-A:  "CANADIAN RRSP" OR "CANADIAN RRIF" as the case may be.
Section 3.  Automatic Extension of Time to Make Election
Described in Section 4 of Revenue Procedure 2002-23
Section 4 of Revenue Procedure 2002-23 provides procedures under
which a beneficiary of an RRSP or RRIF may elect to defer U.S.
income tax on the beneficiary's share of income accrued in the
plan until that income is distributed to the beneficiary.  A
beneficiary makes this election by attaching to his or her timely
filed (including extensions) United States federal income tax
return for the current year the statement described in section
4.01.  The election applies to the beneficiary's current taxable
year and all subsequent taxable years.  Pursuant to section
301.9100-2(b) through (d) of the Procedure and Administration
Regulations, an individual who timely filed his or her United
States federal income tax return for the 2002 taxable year
without making the election described in section 4 of Revenue
Procedure 2002-23 with respect to an RRSP or RRIF, and who would
like to make the election for the 2002 taxable year, may make the
election by filing an amended 2002 federal income tax return by
the date that is 6 months after the due date of the return,
excluding extensions, and attaching to the amended return the
statement described in section 4.01 of Revenue Procedure 2002-23.
The individual must provide the following statement at the top of
the amended return:  "FILED PURSUANT TO SECTION 301.9100-2."
The principal author of this notice is Amanda A. Ehrlich of the
Office of Associate Chief Counsel (International).  For further
information regarding this notice contact Amanda A. Ehrlich or
Willard W. Yates on (202)622-3880 (not a toll-free call).
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WHAT DOES THIS MEAN?
1.     YOU STILL HAVE TO REPORT
2.    WE NOW HAVE UNTIL OCTOBER 15, 2003 TO FILE THE PAPERWORK,
QUOTING "FILED PURSUANT TO SECTION 301.9100-2"
3.    THEY (TREASURY) SAYS THEY ARE GOING TO TRY AND SIMPLIFY IT
FOR THE FUTURE
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