Search Results for: 3520 penalties
Welcome news from IRS for late Form 3520 penalties
…procedures The IRM instructs IRS employees on when to assess penalties related to the Form 3520-A and Form 3520, as well as when penalties should not be assessed, indirectly giving taxpayers some…
IRS International Fines Not Excessive: Form 3520 Penalties Upheld, Form 5471 Penalties Again Unassessable
…3520, and 3520-A) relating to foreign accounts. The Tax Court largely rejected the taxpayer’s constitutional challenges but did find that the IRS could not automatically assess Form 5471 penalties, a…
New Form 3520 Penalties
In November 2020, the IRS changed the rules for assessing penalties for Form 3520, the Annual Return to Report Receipt of Foreign Gifts. Form 3520 is filed for any U.S….
Fantastic Recommendations for Form 3520
…Internal Revenue Service (IRS) systemic assessment of penalties for late filed Forms 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and 3520-A, Annual…
Foreign Gift Received: Form 3520 Penalties Eliminated in New Court Case
…Delinquent Informational Return Submission Procedures (DIIRSP). The IRS nevertheless assessed penalties (25%) totaling $207,500 under IRC 6039F(c)(1). The case is similar to many of our clients’ situations where large penalties…
AICPA Makes Useful Recommendations For International Forms 3520/3520
…them incorrectly. Even worse, our clients have received many Form 3520 penalties over the years, and we have successfully appealed them, but Forms 3520 and 3520-A are unfortunately very complex….
Penalties for Not Filing Form 3520
…a Hearing under IRC 6320. Taxpayers who have incurred penalties for failure to file Form 3520 or late Form 3520 should contact Patel Law Offices. Over the years, our office…
Foreign Gifts and the Uncommon Form 3520: A Trap for the Unwary
…A late Form 3520 will result in an automatic computer-generated penalty. The penalties are a trap for the unwary and unfamiliar. Professional legal counsel is recommended for Form 3520 filers….
IRS Announces New Rules for FBAR Penalties
There are two types of penalties applicable to FinCEN Form 114 (Report of Foreign Bank and Financial Accounts) (FBARs): (1) Non-Willful and (2) Willful. The penalties are theoretically assessed per…
The IRS is Assessing Form 3520 Foreign Information Reporting Penalties
…this cause within the IRS Appeals process. Over the years, our office has successfully represented numerous taxpayers with protests of Form 3520 penalties. Patel Law Offices has consulted with hundreds…
Full Analysis of Updated 2012 OVDP Program
…penalties, willful and nonwillful FBAR penalties, penalties for failure to file various information returns, civil fraud penalties, and even criminal penalties. However, outside the 2012 OVDP, the revenue agent has…
Automatic Form 5471 and 5472 Penalties in Spotlight by 2020 National Taxpayer Advocate Report
…unavailability of the requisite information, and IRS error. The report recommends manual penalty assessment and automatic abatement of penalties. We applaud the IRS for noticing these unfair penalties. Unfortunately, the…
New Webinar: Resolving International Tax Compliance Disputes: FBAR Controversy, Penalties, Appeals, Form 3520/3520-A, Form 5471
I am pleased to announce that I will be speaking in an upcoming Strafford live video webinar, “Resolving International Tax Compliance Disputes: FBAR Controversy, Penalties, Appeals, Form 3520/3520-A, Form 5471”…
Comments on IRS Form 3520 to Report Foreign Gifts
…3520 (maybe Form 3520-I for inheritance). The most current of Form 3520 pertains to foreign trust reporting, which is entirely irrelevant to a U.S. person filer who seeks to report…
Foreign Retirement Plans: New IRS Exemption from Required Information Reporting on Forms 3520 and 3520-A
…to provide pension or retirement, medical, disability, or educational benefits are exempt from Forms 3520 and 3520-A reporting. U.S. persons must still file a Foreign Bank Account Report (FBAR), Form…
US Reporting of Foreign Retirement Accounts
…Form 3520 and Form 3520-A is substantial. The penalty for not timely filing a Form 3520 is equal to $10,000 or 35 percent of the gross reportable amount” whichever is…
OVDI: Requesting issuance of a FBAR warning letter instead of penalties
…than assert penalties under the mitigation guidelines. FBAR penalties are determined per account, not per unfiled FBAR, for each person required to file. Penalties apply for each year of each…
Forms 3520, 5471 and 5472 Penalty Relief
…relief covers their situation and then file missing forms by September 30, 2022. Of particular note, taxpayers who file Forms 3520 and 3520-A (which can generate significant penalties based on…
National Taxpayer Advocate calls IRS Penalties Draconian and Inefficient
…requests before assessing penalties when these requests are submitted in conjunction with IIRs potentially giving rise to penalties; 3) extend eligibility for first-time abatement to all IIR penalties regardless of…
Tax Court Rules IRS Cannot Assess or Collect Form 5471 Penalties
…assess and collect Form 5471 penalties. It is also possible that other penalties for failure to file certain international information returns (e.g., Form 3520 for reporting gifts received from foreign…
Federal District Court Holds that FBAR Penalties in Excess of $100,000 is Unlawful
…penalties. The IRS assessed penalties for willful failure to timely file FBARs from 2007 to 2010. The individual had four separate FBAR violations in 2007, and the associated penalties totaled…
What to do After Receiving Notice CP 15 or CP 215 for Failure to Timely File Form 3520
…with protests of Form 3520 penalties. Patel Law Offices offers a free strategy session to discuss how to resolve your foreign asset problem. Conveniently schedule online today by completing our questionnaire…
IRS gives widespread penalty relief: ACTION REQUIRED
…3520-A (which can generate significant penalties based on the value of the trust/gift) and incurred penalties via the campus assessment program should note that their penalties should now be automatically…
2016 US Dept of Justice (DOJ) Tax Division: FBAR penalty collection cases
…FBARs. Pomerantz has a pending case in the U.S. Tax Court contesting tax deficiencies and fraud penalties asserted for 2007, 2008, and 2009. The deficiencies and fraud penalties asserted by…
ABA COMMENTS ON THE 2014 OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS
…to “opt out” and have their cases evaluated on their individual merits by the IRS, with the understanding that this could result in either lower overall penalties, or higher penalties….
New Streamlined Domestic Offshore Procedures (SDOP) is a Game Changer
…subject only to the Title 26 miscellaneous offshore penalty and will not be subject to accuracy-related penalties, information return penalties, or FBAR penalties. Even if returns properly filed under these…
IRS Reduces Administrative Burden (for the first time) of Filing Some Forms 3520 and/or Forms 3520-A
…trusts. Taxpayers who would otherwise be required to file Form 3520 and/or Form 3520-A, will not now be required to file these forms if they qualify for the relief set…
IRS Revises Delinquent International Information Return Submission Procedure (DIIRSP)
…information returns through normal filing procedures. Penalties may be assessed in accordance with existing procedures. All delinquent international information returns other than Forms 3520 and 3520-A should be attached to…
New IRS Disclosure Program Announced for Non-Resident Taxpayers: Streamlined Foreign Offshore Procedures
…instructions outlined below will not be subject to failure-to-file and failure-to-pay penalties, accuracy-related penalties, information return penalties, or FBAR penalties. Even if returns properly filed under these procedures are subsequently…
Form 3520 Penalty Relief
…the late filing of Forms 3520 and 3520-A, which will take somewhat longer to process. If the IRS has assessed penalties, they will be removed, and if a request for…