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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Ed Parsons CPA explaining foreign trust Form 3520-A penalties and streamlined filing options to help reduce IRS penalties for unfiled foreign trust forms

Form 3520-A Not Filed? The IRS Can Penalize 5% of Your Foreign Trust Value Every Year. Streamlined Filing May Help Avoid It.

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

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

Form 3520-A Not Filed? The IRS Can Penalize 5% of Your Foreign Trust Value Every Year. Streamlined Filing May Help Avoid It. Read More »

CPA helping taxpayer with missed Form 3520 foreign trust reporting and streamlined filing penalty relief

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

Leave a Comment / FBAR, Streamlined Filing Compliance Procedure / By Edward Parsons, CPA

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,

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