Source-cited explainers on International Tax, in plain English or Spanish, for the individuals and businesses we serve across Miami and beyond.
Form 3520 reports transfers to a foreign trust, ownership of one, distributions received from one, and foreign gifts above $100,000. The Section 6677 penalty starts at the greater of $10,000 or 35 percent, and Section 6039F adds 5 percent a month on unreported foreign gifts.
The IRS Streamlined Filing Compliance Procedures let a non-willful U.S. filer catch up on offshore reporting through 3 amended returns and 6 years of FBARs. Depending on residency, the program waives penalties entirely or applies a 5 percent miscellaneous offshore penalty.
Miami immigrants who own at least 10% of a foreign corporation may become US shareholders of a CFC, triggering GILTI income inclusion, Form 5471 filing, and FATCA reporting on Form 8938. Here is how the rules work.
A foreign-owned U.S. business often owes information returns like Form 5471, Form 5472, the FBAR, and FIRPTA withholding, each with its own steep penalty. Here is how these cross-border filings fit together and who must file them.
A foreign person selling U.S. real property triggers FIRPTA: the buyer must withhold 15% of the amount realized and report it on Form 8288. A residence purchase of $300,000 or less is exempt, and Form 8288-B can cut the withholding before closing.
The FBAR is due once your foreign accounts top $10,000 combined at any point in the year. Form 8938 starts at $50,000 and rides your tax return. Many filers owe one, some owe both, and missing either is expensive.
US officers, directors, and 10 percent shareholders of a foreign corporation file Form 5471 with their income tax return. Missing it costs $10,000 per corporation per year, plus $10,000 for every 30 day period after a 90 day IRS notice, capped at $50,000.
The IRS assesses $25,000 when a reporting corporation misses Form 5472, then another $25,000 for each 30-day period after the 90-day notice window. Who files, what counts as reportable, and how the deadline works.
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