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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

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
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Tuesday, December 3, 2024 (in 12 days)

1:00pm-2:50pm EST, 10:00am-11:50am PST

or call 1-800-926-7926

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' roles 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 penalties for failing to file certain international forms is $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 file required international information returns properly.

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Outline

  1. Correcting Foreign Reporting Noncompliance - Introduction
  2. IRS Criminal Investigation Voluntary Disclosure Practice (VDP)
  3. Streamlined disclosure program for non-willful delinquency
    1. Streamlined Domestic Offshore Procedures for U.S. resident
    2. Streamlined Foreign Offshore Procedures for non-U.S. resident
  4. Delinquent international information return submission procedures
  5. Delinquent FBAR submission procedures
  6. Evaluating compliance options
  7. Foreign information noncompliance scenarios

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?
  • What criteria should a tax professional consider when advising a client on the best option to correct noncompliance?
  • What documentation and submissions must accompany a corrective filing?

Faculty

Santa, Mishkin
Mishkin Santa, JD, LLM, TEP

Principal, Director of International Tax
The Wolf Group

Mr. Santa focuses his practice on repatriation tax, as well as individual income tax compliance, estate, gift &...  |  Read More

Warner, David
David J. Warner

Tax Attorney, Shareholder & Managing Principal
Holtz, Slavett & Drabkin

Mr. Warner is a Tax Attorney and the Managing Attorney of the Orange County Office of Holtz, Slavett &...  |  Read More

Attend on December 3

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend December 3?

CPE credit is not available on downloads.

CPE On-Demand

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