Correcting Foreign Information Reporting Noncompliance: Voluntary Disclosure Programs

Navigating Penalty Abatement for Failure to File Forms 5471, 5472, FATCA, and FBAR

Note: CLE credit is not offered on this program

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

Conducted on Monday, June 14, 2021

Recorded event now available

or call 1-800-926-7926
Course Materials

This course will provide CPAs and tax advisers with a practical guide to navigating the amnesty programs available to rectify a client's failure to properly file required international information forms such as the FBAR, Form 8938, and Forms 5471 and 5472. The panel will focus on compliance professionals' and advisers' role in identifying potential foreign information reporting issues, correcting filing deficiencies, and navigating the disclosure process.

Description

The IRS continues to increase its attention and resources to foreign tax compliance reporting by U.S. persons over the past several years. Tax reporting of international accounts and activities can be vexing. Failure to file foreign tax informational forms typically triggers more severe penalties than failure to file most required 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 percent or more of foreign taxes available for credit under Sections 901, 902, 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 percent of the account balance at the time of the violation for willful noncompliance.

Tax advisers and compliance professionals are often the first parties to discover possible noncompliance with these complex foreign information requirements. They are in the best position to seek remedies via one of the IRS' tax amnesty programs.

Advisers serving clients with offshore assets must identify instances where clients are at risk due to missing or incorrect foreign information filings. 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 properly file required international information returns.

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Outline

  1. Identifying foreign information noncompliance scenarios
  2. Streamlined disclosure program for non-willful delinquency
    1. SDOP for U.S. resident
    2. SFOP for non-U.S. resident
  3. Program for willful delinquency
  4. Delinquent international information return submission procedures
  5. Delinquent FBAR submission procedures

Benefits

The panel will discuss these and other relevant topics:

  • What foreign reporting forms are subject to foreign tax reporting penalties?
  • What are the penalty structures for non-willful and willful failure when other violations are in place?
  • What amnesty programs are available to rectify a client's past failures?
  • How significantly has the amnesty landscape changed now that OVDP is no longer an option?
  • What documentation and submissions must accompany a corrective filing?

Faculty

Gardner, Brian
Brian Gardner, J.D., LL.M.
Shareholder
Asbury Law Firm

Mr. Gardner focuses his practice on tax controversy and litigation matters. He represents taxpayers in all phases of...  |  Read More

Moise, David
David J. Moise
Partner
Blank Rome

Mr. Moise has more than 30 years of experience providing services in the area of tax and tax controversy. His practice...  |  Read More

Rosenfeld, Jeffrey
Jeffrey M. Rosenfeld, Esq.
Partner
Blank Rome

Mr. Rosenfeld concentrates his practice in the area of business tax law. He counsels clients in a broad array of tax...  |  Read More

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