Welcome news from IRS for late Form 3520 penalties

- By : Parag Patel

…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…

New Form 3520 Penalties

- By : Parag Patel

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….

Foreign Gift Received: Form 3520 Penalties Eliminated in New Court Case

- By : Parag Patel

…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

Penalties for Not Filing Form 3520

- By : Parag Patel

…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

- By : Parag Patel

…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

- By : Parag Patel

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

- By : Parag Patel

…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

- By : Parag Patel

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

- By : Parag Patel

…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

- By : Parag Patel

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

- By : Parag Patel

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…

US Reporting of Foreign Retirement Accounts

- By : Parag Patel

…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…

Foreign Retirement Plans: New IRS Exemption from Required Information Reporting on Forms 3520 and 3520-A

- By : Parag Patel

…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…

OVDI: Requesting issuance of a FBAR warning letter instead of penalties

- By : Parag Patel

…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

- By : Parag Patel

…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…

Tax Court Rules IRS Cannot Assess or Collect Form 5471 Penalties

- By : Parag Patel

…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

- By : Parag Patel

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

- By : Parag Patel

…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

- By : Parag Patel

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…

ABA COMMENTS ON THE 2014 OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS

- By : Parag Patel

…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….

2016 US Dept of Justice (DOJ) Tax Division: FBAR penalty collection cases

- By : Parag Patel

…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…

New Streamlined Domestic Offshore Procedures (SDOP) is a Game Changer

- By : Parag Patel

…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

- By : Parag Patel

…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)

- By : Parag Patel

…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

- By : Parag Patel

…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

- By : Parag Patel

…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…

Method to Cure Delinquent or Incomplete Foreign Information Returns Without Penalties

- By : Parag Patel

…Foreign Corporation • Form 3520, Annual Return to Report Transactions with Foreign Trusts & Receipt of Foreign Gifts • Form 3520-A, Annual Information Return of Foreign Trust With a U.S….

The New IRS Voluntary Disclosure Practice: Not a Good Deal for Noncompliant Taxpayers

- By : Parag Patel

…the old Offshore Voluntary Disclosure Program (OVDP), taxpayers do not receive automatic protection against criminal/civil penalties and the IRS has wide discretion to impose penalties based on the taxpayer’s level…

A Lesson to be Learned from US v. Schwarzbaum: Bring Back the Foreign Funds to Pay FBAR Penalties

- By : Parag Patel

…was filed against him. After a trial, the district court found Schwarzbaum liable for willful FBAR penalties and issued a judgment for about $12 million in penalties plus late payment…

New Much-Needed Guidance for Non-Willful FBAR violations

- By : Parag Patel

…account. The memorandum also notes, however, that lesser penalties (e.g., only imposing the penalty in one year) or greater penalties (i.e., per account penalties) may be imposed when appropriate. Attachment…