canadian rrsp income - Form 8891

[janedj]

i have just become aware of a client who is a u.s. resident that has rrsp in canada. the client has never included a Form 8891 in his Form 1040s. can the form be filed late or via an amended return? i understand that the income accrued in the rrsp even though not distributed is subject to U.S. tax unless an election is made to defer it (on the Form 8891).
any suggestions?

[Brad Imsdahl]

According to Rev. Proc. 2002-23 http://www.unclefed.com/Tax-Bulls/2002/rp02-23.pdf, the election has to be made on a timely filed tax return, including extensions. I don’t see anything about it being allowed on an amended return. The instructions for Form 8891 say that you also use the form to report the undistributed earnings and distributions. So even if you can’t make the election to defer U.S. tax, it appears you still need to file the form. That you must do with an Amended return, as the form cannot be filed by itself.