Form 5471 Substantial Compliance Rules: IRS International Practice Unit Guidance, Pitfalls to Avoid
Recognizing When the IRS Will Deem an International Tax Information Filing as Not "Substantially Complete"
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide tax counsel and advisers with a practical discussion of IRS International Practice Unit (IPU) guidance on what constitutes "substantial compliance" in filing Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations. The panel will detail the IRS guidance on applying the substantial compliance doctrine and the meaning of "substantially complete" for purposes of the Service's imposition of penalties related to international information return requirements.
Outline
- IPU guidance on the meaning of "substantially complete"
- Substantial compliance vs. strict compliance
- Examples of application of substantial compliance by the tax court
- Difference between an income tax return and an informational tax return in terms of substantial compliance
- Other previous IRS guidance and memoranda
- Examples of when an informational filing is not substantially complete
- Errors apparent on the face of the Form 5471 return
- Errors beyond the face of the return
- Examples from the IPU
Benefits
The panel will review these and other highly relevant concepts:
- IRC 6038 information reporting requirements and penalties
- Guidance on Category 4 vs. Category 5 filers
- How the IPU advises examiners to view substantial compliance in light of tax court holdings and prior IRS advice
- Errors "beyond the face" of Form 5471 that will cause an examiner to treat the filing as not substantially complete
- Common errors on Form 5471 that render the filing to be not substantially complete
Faculty
John Samtoy
Tax Partner
Holthouse Carlin & Van Trigt
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on... | Read More
Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on individuals, closely-held businesses, and hedge funds. He has particular expertise in structuring and reporting foreign manufacturing arrangements and foreign holding companies, and is experienced in foreign asset disclosure requirements, as well as foreign trust and estate reporting.
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Michael Sardar
Partner
Kostelanetz
Mr. Sardar has extensive experience on a wide range of tax controversy and white collar criminal defense matters. He... | Read More
Mr. Sardar has extensive experience on a wide range of tax controversy and white collar criminal defense matters. He represents clients in all stages of civil and criminal tax controversies before the Internal Revenue Service (IRS), state tax authorities, the Department of Justice, and local prosecutors. Mr. Sardar also represents and advises taxpayers facing audits and investigations of noncompliance with IRS foreign bank and asset reporting requirements, utilizing his skill, creative thinking, and deep knowledge of the law in this area. He also has a great deal of experience representing corporate and individual taxpayers making voluntary disclosures of unreported income to the IRS and state tax authorities. Mr. Sardar has also represented scores of clients with unreported foreign assets, enabling the repatriation of over half a billion dollars of offshore assets through the IRS Offshore Voluntary Disclosure Program, the Streamlined Compliance Procedures, and the IRS’ current Voluntary Disclosure Practice.
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