If you are the U.S. owner of a foreign trust and Form 3520-A was never filed, the IRS penalty is 5% of the trust’s gross asset value at year-end. That responsibility falls on you personally, even if the foreign trustee was supposed to file. For a $400,000 trust, that is $20,000 per missed year. The
If you received money or property from a foreign trust and did not file Form 3520, the IRS penalty is the greater of $10,000 or 35% of the gross value of what you received. For a $120,000 trust distribution, that is $42,000. The IRS Streamlined Filing Compliance Procedures offer a legal path to resolve this,
Form 8938 is required for U.S. taxpayers with foreign financial assets above $50,000 (single filers in the U.S.). Missing the filing deadline triggers an immediate $10,000 IRS penalty. Every 30 days of non-compliance after an IRS notice adds another $10,000. The IRS Streamlined Filing Compliance Procedures can reduce or eliminate that penalty if your failure
Guía completa en español sobre los IRS Streamlined Filing Compliance Procedures (SFCP). Descubre conceptos erróneos comunes, hechos poco conocidos, diferencias entre Domestic Offshore vs. Foreign Offshore, y cómo manejar la penalidad del 5% con los formularios oficiales del IRS.
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