RRSPs for those Canadian Residents who have US obligations

The IRS announced on October 7 2014 that they would make it easier for taxpayers who hold interests in either Canadian RRSPs or RRIFs.    They announced that the Form 8891, that form that you had to report RRSP/ RRIF transactions, will be eliminated.  So if you are one of the many people with US filing obligations who had an RRSP after the mid 90’s, and you forgot to attach that 8891 to your 1040, you are absolved.  The IRS noted in their announcement:

“…Many taxpayers also failed to comply with another requirement; namely that they file Form 8891 each year reporting details about each RRSP and RRIF, including contributions made, income earned and distributions made. This requirement applied regardless of whether they chose the special tax treatment. The IRS is eliminating Form 8891, and taxpayers are no longer required to file this form for any year, past or present…”

http://www.taxsamurai.com/2014/10/form-8891-an-obituary/

Photo borrowed from http://www.taxsamurai.com/2014/10/form-8891-an-obituary/

 

 

It is really important to note that it does NOT mean you don’t have to file any FBAR or 8938 forms – or any pesky form under FATCA.  Read the announcement or the exact details as issued for further information