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Navigating the IRS Penalty Abatement Procedures for Foreign Information Reporting Noncompliance

Requesting Penalty Abatements for Failure to File Forms 5471, 5472, FATCA, and FBAR

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Monday, December 2, 2024 (in 11 days)

1:00pm-2:30pm EST, 10:00am-11:30am PST

or call 1-800-926-7926
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This CLE/CPE course will provide tax attorneys and accountants with a detailed discussion of best practices for requesting relief from IRS penalties as a result of failing to timely file required international information forms such as Forms 5471, 5472, 3520, 3520-8858, 8865, 926, and the FBAR. The panel will discuss the current trends in seeking relief from the imposition of such penalties by the IRS and will guide advisers on drafting abatement requests.

Description

Tax reporting of international accounts and activities is complex, and failure to file foreign tax information forms may lead to potentially ruinous penalties. The IRS continues to focus its attention and resources on international tax compliance reporting.

The Internal Revenue Code sets penalties for failure to file Form 5471 at $10,000 per year per form, and the Form 5472 penalty has been increased to $25,000 per return per year. Those penalties can be increased for certain continuation failures up to $60,000 for Form 5471 and an infinite amount for Form 5472.

The penalties for failure to file the FBAR (FinCEN Form 114) range from $10,000 per year for non-willful failure to file up to the greater of $100,000 or 50 percent of the account balance at the time of the violation for willful noncompliance. Multiple penalties may be assessed annually based on the number of unreported foreign accounts.

Listen as our experienced panel provides best practices for documenting and filing requests to reduce foreign tax penalties.

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Outline

  1. Summary of most common international tax reporting forms
  2. Penalty structure
  3. What types of behavior result in determinations of willfulness?
  4. IRS penalty avoidance programs, including the Criminal Investigation Division voluntary disclosure program
  5. Reasonable cause abatement standards
  6. IRS penalty abatement request process
  7. Best practices in drafting penalty abatement requests
  8. What happens when penalty relief fails?

Benefits

The panel will review these and other key issues:

  • What foreign reporting forms are subject to penalties, and how are the penalties calculated, including current litigation on this issue?
  • What are the penalty structures for non-willful and willful failure to file? What standards are used by the IRS and the courts?
  • What are the standards for "reasonable cause" relief?
  • How can the IRS' streamlined procedures be used to mitigate various penalties?

Faculty

McCormick, Patrick
Patrick J. McCormick, J.D., LL.M.
Partner
Rimon Law

Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has...  |  Read More

Additional faculty
to be announced.
Attend on December 2

See NASBA details.

Cannot Attend December 2?

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

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