Discussion with @IRSMedic and @Keith__REDMOND about defensible compliance: Foreign Trusts, Form #3520 + Form #3520A – To be a "Foreign Trust", it must be a "trust". When in doubt about whether it's a "trust", is it safer to file a 3520 or NOT file a 3520? https://t.co/LNV0ady090
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) August 10, 2019
There is evidence from both tax practitioners and from individuals that Americans abroad are suffering from a “Form 3520A” penalty epidemic. Some of the best discussion of both the scope and technicalities of this problem may be found at Tax Connections. See particularly the posts here, here and here. (Mr. Carter’s original post was also reproduced at American Expat Finance.) The posts have attracted commentary from a number of tax professionals. The IRS Taxpayer Advocate has been invited to intervene. “Tax Compliant” Americans Abroad are just a penalty waiting to happen!
Americans abroad are potentially required a very large number of IRS forms. Continue reading →