Canadian RRSP's to be declared to the IRS by Chicago

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Canadian RRSP's to be declared to the IRS?
David:
Thank-you very much for your reply to my email on Canadian RRSP declaration to the IRS.
I have downloaded the instructions and forms you have indicated and will read through them more thoroughly. The TDF-90 seems to be fairly simple to fill in.
I am not sure about the REV.PROCESS 2003-23- If I fax you the info ( it will be tomorrow as I have it at home), I assume that each RRSP account ( I own 3 as stated below) will require a separate filing? How much will you charge for this process and how quickly does it get done?
Do you fax it back to me to file with the IRS?
Thank-you again for your quick response.
JXXXXX XXXXXXXXX
================================
david Ingram replies:
We will charge you $300 Canadian to open file and do first one plus $100 Cdn for each additional RRSP.
We file an amended 1040X tax return as well to report the REV.PROC 2002-23 as well as the 2003-25  information. This is based upon no withdrawals froim your RRSP or RRIF accounts.  If you have withdrawals, the fee would be significantly larger because the penalties and paperwork are far more onerous.
Your charge shold be $500 Canadian but you should be able to continue on your own after that.
So fax me your 1040 as well.
david ingram
  -----Original Message-----
  From: David Ingram at home - bus at [email protected] [mailto:[email protected]]
  Sent: Thursday, July 31, 2003 2:50 AM
  To:
  Subject: Canadian RRSP's to be declared to the IRS by ChicagoResident?
  Dear David: 
  I am a Canadian citizen who lives and works in the US under the NAFTA agreement on a TN-1 visa. 
  I have been working in Chicago since 1998 and pay taxes to the IRS, as well as the State of Illinois, however I do not currently pay taxes in Canada and am considered a non-resident (I do not own property in the US but have kept RRSP's and keep a Cdn bank account).
  I have recently been notified that I may need to state my CDN RRSP's to the IRS for 2002. I own 3 different RRSP's each with a different company in Canada (Investor Group, Altamira and the Royal Bank)
  I have not made contributions to the CDN RRSP's since 1997 and any small dividends earned by the funds are rolled back in to my accounts.
  My letter from the company holding one of my RRSP's indicates that I have 2 choices: 
  1) to declare my RRSP's to the IRS using form 3520a 
  2) to defer my RRSP income until it is matured -and report to the IRS using form 2003-25. 
  I am not sure if there is a better way to go- in reading the IRS instructions it would appear that my income from the funds is low enough to be counted.
  I do not know at this point if I will return to Canada prior to retirement (approximately 20 years from now) and if I decide to 'defer" will I be liable for taxes during the years I am in the US even if I have left by that time.
  Any advice would be helpful- I am having a hard time finding a knowledgeable tax person in the US who understands both Canadian and US tax laws and found your website online.
  Thank-you, 
  ========================================
  david ingram replies:
  Under your circumstances, you should file the paperwork under REV.PROC 2002-23
  It is a far easier process but there is no form.  You have to follow the rules as outlined in the CEN-TAPEDE archives at:
  http://www.centa.com/CEN-TAPEDE/centapede/2003-May/000046.html
  If you need help, simply fax your Dec 31, 2001 and Dec 31 2002 balances to me at (604) 913-9123 We would be glad to sert up the first year for you.  After that, if you do not withdraw money, you should be able to carry on yourself.
  Remember, you also have to file a TDF-90 form for each account.  That goes to a different place and the fines for failure to file the TDF-90 atre up to $500,000 PLUS five years in jail for each unreported account.  OUCH!
  You can find a fillable TDF-90 at  http://www.irs.gov/pub/irs-fill/f9022-1.pdf
  Hoping this helps, I remain
  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) 913-9133 - 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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