This webinar will identify and explain the many required foreign reporting obligations, best practices for avoiding penalties, and how to resolve past noncompliance for trusts and estates. This webinar is for tax preparers, fiduciaries, and other professionals working with trusts and estates.
WHY SHOULD YOU ATTEND?
The government assesses and collects FBAR liability and penalties from beneficiaries and executors after a decedent's date of death and after assets are distributed. In United States v. Park, No. 16 C 10787 (N.D. Ill. May. 24, 2019), for example, the penalty assessed was over $3.5 million. Executors and tax professionals must include determining a taxpayer's compliance with foreign reporting obligations as a necessary step when reviewing, settling, or reporting a decedent's estate.
The penalty for non-willful FBAR violations is $10,000; this can be waived for reasonable cause. Willful non-filing, however, can result in penalties of $100,000 or 50% of the account balance, whichever is larger, as assessed in U.S. v. Park. Advisers must be able to identify and distinguish between a potentially willful or non-willful violation to accurately advise clients.
Form 1040, Schedule B, asks: "During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If 'Yes,' you may have to file Form 3520. See instructions."
In addition to the FBAR, Form 3520 must be filed when a person receives a gift, inheritance, or distribution from a trust established by a foreign entity or individual. In addition to the 3520, owners of foreign trusts must file Forms 8938 and the FBAR. The trust itself must annually file for 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. Parts II and III of the form require reporting a complete set of books for the entity, an income statement, and a balance sheet.
Listen as our panel of experts discusses identifying trusts and estates with foreign reporting obligations, reviews the current government initiative to assess penalties, explains the completion of required forms and outlines best practices for bringing taxpayers into compliance.
AREA COVERED
The panel will discuss these and other critical issues:
- Identifying willful and non-willful FBAR violations
- Uncovering reportable foreign assets held by trusts and estates
- Preparing Forms 3520 and 3520-A for foreign gifts and distributions received
- Handling past noncompliance
LEARNING OBJECTIVES
- Responsible parties
- FATCA and FBAR reporting requirements
- Forms 3520 and 3520-A
- Other reporting obligations
- Review of recent cases
- Handling past noncompliance
- Best practices for avoiding penalties
WHO WILL BENEFIT?
- Accountants, attorneys, financial advisors, and individuals who work with/are nonresidents.
- International Tax, Nonresident Alien, Nondomiciliary, United States trade or business, FDAP, branch profits tax, FIRPTA, income tax treaty, corporate-corporate, accumulation distribution, foreign trust
The government assesses and collects FBAR liability and penalties from beneficiaries and executors after a decedent's date of death and after assets are distributed. In United States v. Park, No. 16 C 10787 (N.D. Ill. May. 24, 2019), for example, the penalty assessed was over $3.5 million. Executors and tax professionals must include determining a taxpayer's compliance with foreign reporting obligations as a necessary step when reviewing, settling, or reporting a decedent's estate.
The penalty for non-willful FBAR violations is $10,000; this can be waived for reasonable cause. Willful non-filing, however, can result in penalties of $100,000 or 50% of the account balance, whichever is larger, as assessed in U.S. v. Park. Advisers must be able to identify and distinguish between a potentially willful or non-willful violation to accurately advise clients.
Form 1040, Schedule B, asks: "During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If 'Yes,' you may have to file Form 3520. See instructions."
In addition to the FBAR, Form 3520 must be filed when a person receives a gift, inheritance, or distribution from a trust established by a foreign entity or individual. In addition to the 3520, owners of foreign trusts must file Forms 8938 and the FBAR. The trust itself must annually file for 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. Parts II and III of the form require reporting a complete set of books for the entity, an income statement, and a balance sheet.
Listen as our panel of experts discusses identifying trusts and estates with foreign reporting obligations, reviews the current government initiative to assess penalties, explains the completion of required forms and outlines best practices for bringing taxpayers into compliance.
The panel will discuss these and other critical issues:
- Identifying willful and non-willful FBAR violations
- Uncovering reportable foreign assets held by trusts and estates
- Preparing Forms 3520 and 3520-A for foreign gifts and distributions received
- Handling past noncompliance
- Responsible parties
- FATCA and FBAR reporting requirements
- Forms 3520 and 3520-A
- Other reporting obligations
- Review of recent cases
- Handling past noncompliance
- Best practices for avoiding penalties
- Accountants, attorneys, financial advisors, and individuals who work with/are nonresidents.
- International Tax, Nonresident Alien, Nondomiciliary, United States trade or business, FDAP, branch profits tax, FIRPTA, income tax treaty, corporate-corporate, accumulation distribution, foreign trust
Speaker Profile
Patrick J McCormick is a partner with Culhane Meadows, a United States law firm with prominent experience and specialty in the international realm. Patrick practices exclusively in the area of international taxation; he has extensive experience in handling complex tax planning, structuring, and compliance issues for foreign businesses with United States operations, United States businesses with foreign operations, and individual taxpayers with international ties. He regularly works conjunctively with advisors both in the United States and abroad to assist with international tax issues faced by their clients.Patrick is a prolific contributor to a multitude of tax journals and legal publications, …
Upcoming Webinars
Conflict Resolution - Prevent, De-escalate, Resolve
When Employees Travel: Wage and Expense Rules Employers Mus…
Female to Female Hostility @Workplace: All you Need to Know
With Mandatory Paid Leave Gaining Ground Is It Time To Do A…
Implementing an Effective Human Error Reduction Program
Validation Statistics for Non-Statisticians
Form 1099-MISC and 1099-NEC Compliance Update 2024
GAMP5, Second Edition and Alignment with Computer Software …
Why EBITDA Doesn't Spell Cash Flow and What Does
Project Management for Non-Project Managers - Scheduling yo…
The Totally Organized Professional Is All About Outcomes
Understanding the Math of HR… So You Can Show How HR Impact…
Sunshine Act Reporting - Clarification for Clinical Research
Re-imagine Finance & Accounting Made Simple. Three Webinars…
FFIEC BSA/AML Examination Manual: What Compliance Officers …
How to Address ISO's New Climate Change Requirements
I-9 Audits: Strengthening Your Immigration Compliance Strat…
Stay Interviews: A Powerful and Low-Cost Employee Engagemen…
How To Conduct An Internal Harassment And Bullying Investig…
Effective Onboarding: How to Welcome, Engage, and Retain Ne…
Managing Toxic & Other Employees Who Have Attitude Issues
Analytical Method Validation Under Good Laboratory Practic…
Do's and Don'ts of Documenting Employee Behaviour, Performa…
Do's and Don'ts of Giving Effective Feedback for Performanc…
Onboarding New Hires: Leverage the Potential of Artificial …
Project Management for HR, Administrative Professionals, an…
Tattoos, hijabs, piercings, and pink hair: The challenges …
How to Document Employee Discussions and Why it is Important
Using Behavior Based Interviewing for Finding the Best Matc…
Stressed Out: How to Handle Conflict, Difficult People and …
Harassment, Bullying, Gossip, Confrontational and Disruptiv…
Understanding the Artificial Intelligence Landscape
Marketing to Medicare or Medicaid Beneficiaries - What You …
Best Practices for Working With Vendors and Suppliers
Accounting For Non Accountants : Debit, Credits And Financi…
Principles & Practices for the Cybersecurity of Legacy Medi…
Independent Contractor vs. Employee New Rule Issued by The …
Ultimate Persuasion Strategies! - Secret Influence Tools & …
Kicking your Employee Retention Efforts into Overdrive: Sta…