The IRS is seeking comments and input from the general public on the main programs taxpayers can use to obtain penalty relief for late reporting of foreign financial assets and foreign income. Background Generally, when individuals or businesses fail to report foreign financial assets [...]
On October 24, 2024, IRS Commissioner Daniel Werfel announced that the IRS will no longer automatically assess international civil penalties for late-filed Forms 3520 and 3520-A.1 Background on Forms 3520/3520-A filing requirements and penalties Internal Revenue Code §6048 requires United States tax residents and [...]
On March 2, 2020, the IRS passed new guidance making tax filings easier for certain US taxpayers with foreign pensions, retirement accounts, and savings trusts outside the US (see Rev. Proc. 2020-17). Specifically, it created two new “safe harbors.” Taxpayers whose retirement or other [...]
On March 2, 2020, the IRS announced two new “safe harbors” for certain US citizens, green card holders, and other US tax residents who own foreign pensions, retirement accounts, and savings trusts (see Rev. Proc. 2020-17). It also offered relief from certain penalties for [...]
If you own the foreign equivalent of a 401(k) plan or an IRA, then you might reasonably assume that, under US tax law, the IRS would treat your foreign account the same way it treats US 401(k)s and IRAs. You might assume that your [...]
Form BE-10 is due May 29, 2020. Never heard of it? That’s because it’s only required every five years, and it is NOT a tax form, so it’s not widely discussed. So, why are we alerting you to it? Because like many of [...]
The IRS is hitting the road, targeting high-income earners who haven’t filed federal income tax returns or paid taxes for 2018 or previous years. The agency estimates that billions are lost in tax dollars from these non-filers. The goal is to collect and the [...]
On September 6, 2019, the IRS released a new amnesty program directed at former US citizens who renounced their US citizenship but failed to file required US individual income tax returns. These forms include Form 1040, international informational reports (example – FBAR), or the [...]
Do you have financial accounts or foreign assets overseas? If so, did you know that there is a big deadline looming under the Foreign Account Tax Compliance Act (FATCA)? Foreign institutions are required to obtain IRS Forms W-9/W-8BEN from US clients. Under FATCA, foreign [...]
For years, new clients (and some of our current ones) have been asking why they should bother fixing their prior US tax filings to report previously unreported foreign income or foreign assets. The most common question is “How will the IRS ever know?” Years [...]
