SECTION 1. BACKGROUND.

Notice 2003–25, 2003–18 I.R.B. 855, and Notice 2003–57, 2003–34 I.R.B. 397, provided guidance to taxpayers regarding their 2002 taxable year information reporting obligations with respect to Canadian registered retirement savings plans (“RRSPs”) and registered retirement income funds (“RRIFs”). These Notices stated that Treasury and the IRS intended to develop an alternative, simplified reporting regime for these Canadian retirement plans for future taxable years.

This notice describes the new simplified reporting regime that Treasury and the IRS have developed for taxpayers who hold interests in RRSPs and RRIFs. The new reporting regime, which is effective for taxable years beginning after December 31, 2002, is in lieu of the filing obligations under section 6048 (Form 3520, Annual Return to Report Transactions With For- eign Trusts and Receipt of Certain Foreign Gifts, and Form 3520–A, Annual Informa- tion Return of Foreign Trust With a U.S. Owner ) that otherwise apply to U.S. citizens and resident aliens who hold interests in RRSPs and RRIFs and to the custodians of such plans. The new simplified reporting regime is designed to permit taxpayers to meet their reporting obligations by using information that is readily available to them.