In this version of Ask a Cross-Border Financial Advisor, we receive a question about taxes on RRSP withdrawals in the U.S.
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I just viewed your latest video on Cross Border Tax Forms. Thanks for that. I can’t find a proper blog to post this question, so I’ll put it here.
I have always filed an FBAR disclosing foreign (Canadian) investments, but I have never filed Form 8938 because I didn’t know it existed. I apparently should be filing this form due to having RRIF/LIF and bank accounts well over $100,000. You mentioned back-filing FBARs if you all of a sudden realize you need to file those with FINCEN, but you didn’t mention back-filing Form 8938 with IRS. I’m guessing there’s no way to back-file Form 8938 without re-filing past years tax returns. Is that correct? So then, do you recommend just starting to file Form 8938 when you become aware of the need to do so?
Thanks for the question. I do believe that you would need to file amended tax returns to file your old 8938s. However, I don’t do tax prep so I’d suggest speaking with a cross-border CPA regarding this situation. Thanks.