Correcting Corporate Foreign Tax Noncompliance: Identifying and Repairing Incomplete or Incorrect Filings

Remaining IRS Voluntary Disclosure Initiatives, Challenging Finding of Willful Failure

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, October 29, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide corporate tax advisers with a practical guide to identifying potential foreign information reporting noncompliance, and correcting and disclosing filing deficiencies. The panel will discuss the most common issues in completing international information forms such as the FBAR, Form 8938, and Forms 5471 and 5472. The webinar will also offer useful tools for remedying delinquent or incorrect foreign asset disclosure filings after the closing of the Overseas Voluntary Disclosure Program (OVDP).

Description

The IRS' continued attention and resources devoted to foreign tax compliance reporting by U.S. taxpayers, the overhaul of the international provisions in the 2017 tax law, and the closing of the OVDP all burden individual and corporate taxpayers. Tax reporting of international accounts and activities can be vexing, and failure to file foreign tax informational forms trigger more severe penalties than with most domestic tax forms.

The Internal Revenue Code sets penalties for failure to file certain international forms at $10,000 per unfiled return. Additionally, Code Section 6038(c) provides for a reduction of 10% or more of foreign taxes available for credit under Sections 901, 902 (for years prior to 2018), and 960. Likewise, the penalties for failure to file the FBAR (FinCEN Form 114) range from $10,000 for non-willful failure to the greater of $100,000 or 50% of the account balance at the time of the violation for willful noncompliance.

Corporate tax advisers are often the first to discover possible noncompliance with these complex foreign information requirements and are in the best position to correct missing or incorrect foreign filings and, where appropriate, to seek remedies via one of the IRS' tax amnesty programs. They should also be thoroughly knowledgeable of the requirements and processes for requesting abatements of penalties for failure to file required foreign tax information.

Listen as our experienced panel provides practical advice for navigating the current tax amnesty programs available to rectify a client's failure to file required international information returns correctly.

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Outline

  1. New IRS Large Business & International (LBI) Foreign Compliance Initiatives
  2. Identifying foreign information noncompliance scenarios
  3. Streamlined disclosure program for non-willful delinquency
    1. Streamlined filing compliance procedures
    2. Streamlined Domestic Offshore Procedure for U.S. residents
    3. Streamlined Foreign Offshore Procedure for non-U.S. residents
    4. Delinquent FBAR Submission Procedure
    5. Delinquent International Return Submission Procedures
  4. Noisy disclosures vs. quiet disclosures
  5. Penalty structures outside of formal IRS programs and procedures
  6. Reasonable cause abatement standards
  7. Willfulness and reckless disregard--will you know it when you see it?

Benefits

The panel will review these and other priority issues:

  • What are the penalty structures for non-willful and willful failure to file?
  • What are the standards for "reasonable cause" abatement?
  • What standards are used by the courts and the IRS to determine willfulness?
  • How the remaining IRS streamlined procedures can be used to mitigate various penalties?

Faculty

Gardner, Brian
Brian Gardner

Attorney
Taylor English Duma

Mr. Gardner focuses his practice on federal, state and international tax controversy and tax planning matters. He...  |  Read More

Gifford, Dirk
Dirk Gifford

Managing Director
KPMG, LLP

Mr. Gifford serves in the firm's International Corporate Services Practice. He focuses on working primarily with...  |  Read More

Vandenberg, Shane
Shane M. Vandenberg
Manager
KPMG

Mr. Vandenberg is a Manager in KPMG’s Tax Controversy Services practice, which represents firm clients at all...  |  Read More

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