Foreign income reporting on US Tax Return

A note on the NRPC site and also on the Yahoo Nortel pension group mentioned a new form 8938 which needs to be completed by US residents who have a financial interest in foreign banks or funds or trusts. The form is in addition to the Treasury form that needs to be completed and filed with the US treasury department. Turbotax supports this new form 8938.

You need to indicate on the software that you have foreign income or a foreign financial interest and then complete the form. You need to actually fill in the details on the form. Easystep will not take you through it.

I only found out about this new form yesterday which is unfortunately after the filing date of April 17th. If you are in the same boat you can file an amended return. Again Turbotax will guide you through that process.

If you have a bank account or RRSP or trust in Canada which is over $50,000 ($100,000for married filing jointly) you need to complete the form.
Also if you receive a pension from a Canadian company like Nortel, you need to complete the form.

You do not need to complete the form for CPP or OAP from Canada. Foreign Social Security payments like the CPP or QPP are exempt.

The form asks for a number representing the maximum value of the account during the year. For pensions, from what I can tell, you can use the total pension paid to you for the year, converted to US dollars. Check the instructions at www.irs.gov.

Tom

Nortel Mediation Process

The following web site has been created to cover the Nortel mediation process:

http://nortelmediation.com/

Here's the latest information from the web site:
Tom


The Nortel Mediation

In June 2011, Justice Geoffrey B. Morawetz of the Ontario Superior Court of Justice and Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Delaware, ordered all parties to the bankruptcy proceedings of Nortel Network Corporation to seek mediation while they prepare their decisions on motions seeking the allocation of Nortel's assets, heard earlier in the month.

The Honourable Warren K. Winkler, the Chief Justice of Ontario, was appointed mediator.

On March 26, 2012, Chief Justice Winkler announced in a letter to parties that an introductory mediation session will be held on April 24, 2012, at the Metropolitan Hotel, 108 Chestnut Street, Toronto, Ontario, commencing at 10 a.m. The mediation meeting will begin with a plenary session at which the mediation process will be outlined. Short private meetings with the parties, limited to 30 minutes, will follow. To arrange a private meeting, parties should contact Randy Bennett of Rueter, Scargall Bennett LLP randy.bennett@rslawyers.com.

This website has been created to provide information about the mediation being conducted by Chief Justice Winkler.