Ed Parsons CPA explaining IRS foreign trust reporting penalties and streamlined filing solutions for unfiled Form 3520-A compliance issues

Unreported PFICs? How Streamlined Filing May Help Reduce Brutal IRS Taxes and Penalties?

Leave a Comment / 2. Expat Taxes - Americans Abroad, FBAR, Streamlined Filing Compliance Procedure / By Edward Parsons, CPA

A Passive Foreign Investment Company (PFIC) includes most foreign mutual funds, ETFs, and investment funds held outside the U.S. If you sold or received distributions from one without filing Form 8621, the IRS applies the excess distribution method: all gains are taxed at the highest ordinary income rate of up to 37%, plus a compounding

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Received Foreign Trust Money Without Filing Form 3520? Here’s How Streamlined Filing May Help

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,

Foreign Trust Reporting

Unreported PFICs? How Streamlined Filing May Help Reduce Brutal IRS Taxes and Penalties?

Received Foreign Trust Money Without Filing Form 3520? Here’s How Streamlined Filing May Help