Andrew Nelson has pointed out that the 2002-23 is always better than filling out the 3520A Andrew - For the record, I have never filled out a 3520-A david -----Original Message----- From: Nelson, Andrew G. [mailto:[email protected]] Sent: Thursday, September 04, 2003 6:23 AM To: [email protected] Subject: RE: US citizen in New Mexico has Canadian RRSPs to dealwith - Ask an income tax expert experts advisor advisors consultant consultants Canada US Mexico David, A subtle but important point on 3520-A. You stated that if a client did NOT with draw money from an RRSP/RIF "he must fill in form 3520A or follow the rules in REV.PROC 2002-23. Note that while RP 02-23 does indeed satisfy the reporting requirements of 3520-A, the reverse is not true: filing 3520-A does not trigger the benefits derived from RP 02-23, namely, deferral of IRS taxation on internal RRSP income. So, it is never a good idea to file 3520-A instead of RP 02-23, since RP 02-23 is the ONLY way to get tax deferral. Neither 3520 nor 3520-A do anything for deferral. If one is interested in tax deferral (and there are only rare instances when this would not be a concern) One should ALWAYS choose RP 02-23 instead of 3520-A. AGN -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Thursday, September 04, 2003 01:16 To: CENTAPEDE Subject: US citizen in New Mexico has Canadian RRSPs to dealwith - Ask an income tax expert experts advisor advisors consultant consultants Canada US Mexico Mr Ingram, I have a client who is a US citizen and lived in Canada for many years and has their equivalent to our IRA. They now live in New Mexico. Can you tell me what their choices are for this money? You can call me at (877) 456-XXXX. Thank you. JXXXXXXX Financial Consultant (505)892-XXXX Phone (505)994-XXXX Fax ============================= David Ingram replies: Assuming that the Canadian RRSP accounts total over $10,000, your client must fill in forms TDF-90 whicxh is a report of foreign financial accounts and goes to the Dept of Treasury in Detroit. Failure to file these forms to report foreign accounts can result in fines of up to $500,000 plus 5 years in Jail. If your client withdrew any money from these accounts in 2002 he must fill in form 3520. If no money was withdrawn, he must fill in form 3520A or follow the rules in REV.PROC 2002-23 which can be found at: www.centa.com, click on newsletters, click on 2003, then read the August front page for the two most important parts. Hope this helps, if you need any help doing this for the first year, we will lok after it for $300.00 Canadian for the first RRSP / RRIF / RPP and $100 for each additional account. You should be able to copy the method for subsequent years. Note that more detailed inforamtion will be requitred on form 3520 for 2003 onward. If you want help, Contact me at: 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) 980-0321 - 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" . --- Incoming mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.515 / Virus Database: 313 - Release Date: 9/1/03 --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.515 / Virus Database: 313 - Release Date: 9/1/03
