U.S. taxpayers who own, manage, or engage in certain transfers involving foreign entities, assets, or accounts during a given taxable year may have to file a number of reports with the federal government. These reports include:
- FinCEN 114, Report Foreign Bank and Financial Accounts (a.k.a., the FBAR);
- Form 8938, Statement of Specified Foreign Financial Assets;
- Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations;
- Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships;
- Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund;
- Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner;
- Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts;
- Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation.
The filing requirements (i.e., who exactly has to file, what exactly has to be disclosed) vary from form to form, and the penalties for failing to file a form when required can be quite severe. We can help you determine when a particular form needs to be filed and ways to mitigate past failures to file.
If you have any questions about this, or about tax resolution, tax controversy, or tax litigation in general, please do not hesitate to give us a call.