US Citizen and Full Year Resident

Received Canadian Pension and Retirement funds totaling $25K in USD

They did not file a Canadian tax return

1. Do I need to report this income on their 1040 since they are not filing a Canadian Tax Return?
2. Do I wait for them to file the Canadian return and then update their US Taxes with Form 1116 based on the Canadian Taxes?
3. Fill out form 1116 with the $25k income ($0 for taxes paid/accrued) and finalize their 1040?

Please let me know if more information is needed.