The Internal Revenue Code contains numerous requirements for U.S. taxpayers to report their interests in foreign corporations, partnerships, trusts and estates, and certain transactions involving foreign entities.
Heavy penalties can apply for failure to file these returns in a timely manner. In most cases, the forms must be filed as part of your regular federal income tax return.
In the past the IRS seems to have "looked the other way" when there has been a failure to file, but the IRS has indicated that this will no longer be the case.
The IRS views foreign activities as a major source for tax avoidance, and has said it will now strictly enforce the penalties for failure to file these forms.
Click here to learn more about these foreign-related filing requirements.
For more information regarding these requirements, please contact Gary L. Kaplan.