Delinquent International Information Returns Submission
Historical Perspective – Delinquent International Information Returns Submission.
On Wednesday, June 18, 2014 the IRS re-introduced an expanded and eased Streamlined program which was originally introduced June 26, 2012 to become effective September 1, 2012 for taxpayers not under an IRS initiated civil or criminal examination. As part of that new Streamlined program the IRS introduced the new Delinquent International Information Returns Submission Procedures.
If no Streamlined is required (i.e.: since there are properly filed U.S. income tax returns and information returns reporting all income accurately, except no International Information Returns were filed) to file delinquent or amended tax returns and pay additional tax but:
1) the taxpayer needs to file one (1) or more information returns,
2) the taxpayer has Reasonable Cause
3) the taxpayer is not under civil examination or criminal investigation, and
4) the taxpayer has not already been contacted by IRS about delinquent info returns.
The guidance under the newly released Delinquent International Information Returns Submission Procedures is that the taxpayer should file delinquent FBARs quietly with a reasonable cause statement also certifying that the entity not engaged in tax evasion.
The IRS will not impose a penalty for failure to file delinquent International Information Returns if you properly reported on your U.S. income tax returns and paid all tax, the income from the Foreign Financial Assets (FFA) reported on the delinquent FBARs and there has been no contact re an income tax examination or request for delinquent returns for those years for which the Delinquent International Information Returns are submitted.
Other than for Form(s) 3520/ 3520A, attach the Delinquent International Information Returns to an amended U.S. individual income tax return Form 1040.
Delinquent Form(s) 3520/ 3520A should be filed according to their instructions and by attaching a reasonable cause statement.
Delinquent International Information Returns filed with amended income tax returns will not automatically be subjected to audit, but they may be selected through existing normal selection audit procedures.
Information on Delinquent Information Return Submissions may be found at:
http://www.irs.gov/Individuals/International-Taxpayers/Delinquent-International-Information-Return-Submission-Procedures
Protax has completed and are in process of completing thousands of such Streamlined filings.
Please contact us for a free consultation and for further details.