The Woodlands FBAR Attorney | International Tax Lawyer Texas

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If you are a resident of The Woodlands (Texas) and you have unreported foreign accounts, you may be looking for The Woodlands FBAR Attorney in Texas. In your search, you should consider Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Let’s explore in more detail why this is the case.

The Woodlands FBAR Attorney: International Tax Attorney

First of all, it is very important to understand that, by looking for The Woodlands FBAR attorney, in reality, you are looking for an international tax attorney whose specialty includes FBAR compliance.

Ever since the FBAR enforcement was turned over to the IRS in 2001, the term FBAR attorney applies almost exclusively to tax attorneys.

Moreover, FBAR enforcement belongs to a very special field of US tax law – US international tax law. The reason for this is simple: FBAR is an information return concerning foreign assets and the tax compliance concerning foreign assets/foreign income belongs to US international tax law. Hence, when you look for an FBAR attorney, you are looking for an international tax attorney with a specialty in FBAR compliance.

The Woodlands FBAR Attorney: Out-Of-State International Tax Attorney

Further, it is important to note that, since you are looking for an attorney who specializes in US international tax law (i.e. a federal area of law), you do not need to limit yourself to lawyers who reside in The Woodlands, Texas. On the contrary, consider international tax attorneys who reside in other states and help The Woodlands residents with their FBAR compliance.

Sherayzen Law Office is an international tax law firm that specializes in US international tax compliance, including FBARs. While our office is in Minneapolis, Minnesota, we help taxpayers who reside throughout the United States, including The Woodlands, Texas.

The Woodlands FBAR Attorney: Broad Scope of Compliance

When retaining The Woodlands FBAR Attorney, consider the fact that such an attorney’s work is not limited only to the preparation and filing of FBARs. Rather, the attorney should be able to deliver a variety of tax services and freely operate with experience and knowledge in all relevant areas of US international tax law, including the various offshore voluntary disclosure options concerning delinquent FBARs.

Moreover, as part of an offshore voluntary disclosure, The Woodlands FBAR Attorney often needs to amend US tax returns, properly prepare foreign financial statements according to US GAAP, correctly calculate PFICs, and complete an innumerable number of other tasks.

Mr. Sherayzen has helped hundreds of US taxpayers worldwide to bring their tax affairs into full compliance with US tax laws. This work included the preparation and filing of offshore voluntary disclosures concerning delinquent FBARs. Sherayzen Law Office offers help with all kinds of offshore voluntary disclosure options, including: SDOP (Streamlined Domestic Offshore Procedures), SFOP (Streamlined Foreign Offshore Procedures), DFSP (Delinquent FBAR Submission Procedures), DIIRSP (Delinquent International Information Return Submission Procedures), IRS VDP (IRS Voluntary Disclosure Practice) and Reasonable Cause disclosures.

Thus, if you are looking for a The Woodlands FBAR Attorney, contact Mr. Sherayzen as soon as possible to schedule Your Confidential Consultation!

2024 Form 5471 Penalties | International Tax Lawyer & Attorney

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Failure to timely and correctly submit Form 5471 with a US tax return may lead to an imposition of Form 5471 penalties. In this article, I will discus the most important 2024 Form 5471 penalties that US taxpayers may face if they fail to comply with the Form 5471 requirements.

2024 Form 5471 Penalties: Purpose of Form 5471

We first need to understand the purpose of Form 5471 and broadly identify who may need to file this form. The IRS Form 5471 is an extremely complex form that is used to satisfy the reporting requirements of mainly two esoteric sections of the Internal Revenue Code: 26 U.S.C. § 6038 (“Information reporting with respect to certain foreign corporations and partnerships”) and 26 U.S.C. § 6046 (“Returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock”).

It should be noted that Form 5471 is used to satisfy other US tax provisions, especially after the 2017 tax reform. IRS §§ 6038 and 6046, however, are most relevant for our discussion of Form 5471 penalties.

Certain US citizens and US tax residents who are officers, directors or US shareholders of a foreign corporation may need to file Form 5471 and accurately comply with its reporting requirements. Failure to file Form 5471 or failure to file a correct Form 5471 may result in the imposition of steep IRS penalties.

The First Set of 2024 Form 5471 Penalties: Failure to file information required under section 26 U.S.C. § 6038(a)

From the outset, it is important to note that 26 U.S.C. § 6038 applies to two different parts of Form 5471: the Form 5471 proper (i.e. the first six pages containing the identifying information and Schedules A through I plus Schedules H and I-1) and Schedule M of Form 5471. Failure to file either is enough to trigger a $10,000 penalty for each annual accounting period of each foreign corporation. If the IRS sends the taxpayer a notice of a failure to file, an additional $10,000 penalty (per foreign corporation) will be charged for each 30-day period (or fraction thereof), during which the failure continues after the 90-day period in which the notification occurred, has expired. This additional penalty is limited to a maximum of $50,000 for each failed filing.

Furthermore, there is an income tax penalty associated with the failure to comply with 26 U.S.C. § 6038 in a timely manner – the taxpayer may be subject to a 10% reduction of certain available Foreign Tax Credits. A further 5% reduction may be applied for each 3-month period (or fraction thereof), during which the failure to timely report or file continues after the 90-day period of IRS notification has expired. (26 U.S.C. § 6038(c)(2) places certain limitations on this penalty).

The Second Set of 2024 Form 5471 Penalties: Failure to file information required by 26 U.S.C. § 6046 and related regulations (Form 5471 and Schedule O)

In addition to 26 U.S.C. § 6038 Form 5471 penalties, there is also an additional set of Form 5471 penalties associated with 26 U.S.C. § 6046 (Form 5471 and Schedule O). Failure to comply with 26 U.S.C. § 6046 will subject the taxpayer to another $10,000 penalty for each failure to file for each reportable transaction. Additionally, if the failure to report or file continues for more than 90 days after the date the IRS mails notice of this failure, an additional $10,000 penalty will apply for each 30-day period (or fraction thereof) during which the failure continues after the 90-day period has expired. This additional penalty is limited to a maximum of $50,000.

2024 Form 5471 Non-Compliance May Result in Criminal Penalties

In addition to civil penalties under 26 U.S.C. § 6038 and 26 U.S.C. § 6046, criminal penalties may apply to Form 5471 filers in certain circumstances. In particular, a willful failure to file an accurate Form 5471 may activate the broad provisions of 26 U.S.C. § 7203 (“Willful failure to file return, supply information, or pay tax”), 26 U.S.C. § 7206 (“Fraud and false statements”), and 26 U.S.C. § 7207 (“Fraudulent returns, statements, or other documents”).

2024 Form 5471 Penalties and Persons Other Than the Filer

In situations where the filer should have filed Forms 5471 for other persons, but failed to do so, Form 5471 penalties may be extended to these other persons.

Contact Sherayzen Law Office For Help With 2024 Form 5471 Penalties and Compliance

If you partially or fully own a foreign corporation, you may be subject to the Form 5471 requirements. As explained in this article, failure to timely and/or correctly comply with your Form 5471 filing obligations may result in steep Form 5471 penalties.

Contact Sherayzen Law Office today for professional help concerning Form 5471 penalties, including engaging in offshore voluntary disclosures involving Form 5471.

Contact Us Now to Schedule Your Confidential Consultation!

Happy New Year 2024 From International Tax Law Firm Sherayzen Law Office!!!

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Dear clients, followers, readers and colleagues:

Mr. Eugene Sherayzen, an international tax attorney, and the entire international tax team of Sherayzen Law Office, Ltd. wishes you a very Happy New Year 2024!!!

Dear clients and prospective clients, in the New Year 2024, you can continue to rely on Sherayzen Law Office for:

  1. Resolution of your prior FBAR, FATCA and other US international tax noncompliance through offshore voluntary disclosure, including Streamlined Domestic Offshore Procedures (SDOP), Streamlined Foreign Offshore Procedures (SFOP), Delinquent FBAR Submission Procedures, Delinquent International Information Return Submission Procedures, IRS Voluntary Disclosure Practice and Reasonable Cause Disclosures;
  2. Help with your IRS audits and examination, including audits of: your prior SDOP and SFOP submissions (as well as other voluntary disclosure options) and your annual international tax compliance. We can also help you fight the imposition of IRS penalties for prior international tax noncompliance, including FBAR penalties, Form 8938 penalties, Form 3520 and 3520-A penalties, Form 5471 penalties, Form 5472 penalties, Form 8865 penalties, Form 926 penalties, et cetera;
  3. Preparation of your annual US international tax compliance, including the reporting of foreign income and preparation of FBAR, FATCA Form 8938 and other US international tax compliance forms such as: Forms 3520, 3520-A, 5471, 8621, 8865, 8938 and 926 and
  4. Your international tax planning (inbound and outbound), including individual and business tax planning, We intend to continue to help US firms with conducting business overseas, US owners of foreign businesses and foreign businesses who wish to expand their presence to the United States (including real estate investors).

In resolving all of your current US international tax issues, we will continue to employ ethical creativity, diligence, professionalism and many years of experience with helping other clients. We will also continue to utilize an individual, customized approach, understanding each client’s particular situation.

In 2024, the US international tax compliance requirements will likely grow even more complex, detailed and extensive. The IRS will continue to demand more and more information from US taxpayers, employing its expanding number of revenue agents to enforce US tax laws across the globe and especially in the United States.

In order to deal with this ever-increasing US tax compliance burden, you will need the professional help of Sherayzen Law Office. In this New Year 2024, we can help you!

Your professional US international tax help is but a phone call away from you! Contact us today to schedule a confidential consultation in this New Year 2024!

HAPPY NEW YEAR 2024 EVERYONE!!!

Minnesota FBAR Tax Attorney | International Tax Lawyer

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If you are looking for a Minnesota FBAR tax attorney, consider retaining the services of Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. (“Sherayzen Law Office”). Mr. Sherayzen is an international tax attorney and founder of Sherayzen Law Office.

Minnesota FBAR tax attorney: FBAR Specialization of an International Tax Attorney

The definition of a Minnesota FBAR tax attorney includes two major specializations: FBARs and US international tax law in general. With respect to the first specialization,  Mr. Sherayzen has personally filed over a thousand FBARs and has helped hundreds of US taxpayers worldwide to bring their tax affairs into full compliance with US tax laws.

Mr. Sherayzen also specializes in international tax compliance, including voluntary disclosure of delinquent (i.e. late) FBARs.  He is an international tax attorney who is able to deliver a variety of services and freely operate with experience and knowledge in all relevant areas of international tax law.  Together with his highly-experienced team at Sherayzen Law office, Mr. Sherayzen is able to (often as part of an offshore voluntary disclosure) to amend US tax returns, properly prepare foreign financial statements according to US GAAP, correctly calculate PFICs, and innumerable number of other tasks.

Mr. Sherayzen has an extensive experience with and knowledge of all offshore voluntary disclosure options that involve delinquent FBARs, including; former OVDP/OVDI, Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures, Delinquent FBAR Submission Procedures, Delinquent International Information Return Submission Procedures, IRS Voluntary Disclosure Practice and Reasonable Cause Disclosures.

Sherayzen Law Office Legal Team Provides Efficient and Cost-Effective Services

In order to make sure that his work is expeditious and cost-effective, Mr. Sherayzen built a team of tax professionals that he employs within his firm. Each member of the team is trained personally by Mr. Sherayzen and is assigned specific tasks. For example, an international tax accountant helps Mr. Sherayzen prepare the clients’ tax returns while his staff is trained in creating FBARs based on the information already verified by Mr. Sherayzen.

This team of motivated, intelligent and experienced tax professionals allows Sherayzen Law Office to provide an exceptional array of customized offshore voluntary disclosure, international tax planning and international tax compliance services which fully integrate the legal and accounting aspects of international tax compliance and offshore voluntary disclosures in an efficient and cost-effective manner.

Therefore, if you are looking for a Minnesota FBAR tax attorney, please contact Mr. Sherayzen as soon as possible to schedule Your Confidential Consultation

2023 Form 3520-A Deadline in 2024 | Foreign Trust Tax Lawyer & Attorney

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Form 3520-A is a very important US international information return. It can be very complex and has somewhat tricky filing requirements as well as significant noncompliance penalties. In order to avoid these penalties, you need to file a correct Form 3520-A timely. In this essay, I will discuss the 2023 Form 3520-A deadline in the calendar year 2024.

2023 Form 3520-A Deadline: Purpose of Form 3520-A

Form 3520-A occupies an important role in US international tax law. Its primary purpose is to obtain certain information about a foreign trust with at least one US person who is treated as an owner of the foreign trust under the grantor trust rules found in the IRC (Internal Revenue Code) §§671-679.

Through Form 3520-A, the IRS collects not only the data about the foreign trust and its US beneficiaries, but also the information concerning interactions between the foreign trust and its US owners. Moreover, Form 3520-A indicates the amount of income a US owner must recognize on his US tax returns (irrespective of whether this income was distributed to the owner).

2023 Form 3520-A Deadline: Who Must File

As I mentioned above, the question of “who must file” Form 3520-A is quite tricky. Generally, a foreign trust with a US owner has responsibility to file Form 3520-A in order for the US owner to satisfy his annual information reporting requirements under IRC §6048(b). Hence, while a foreign trust officially must file Form 3520-A, in reality, it is the responsibility of each US person treated as an owner of any portion of a foreign trust to ensure that the trust files Form 3520-A and furnishes the required annual statements to its US owners and US beneficiaries.

What if the foreign trust fails to file the required Form 3520-A? Then, the US owner must complete a substitute Form 3520-A for the foreign trust and attach this substitute Form 3520-A to the US owner’s Form 3520.

2023 Form 3520-A Deadline: Penalties for Late Filing

If the foreign trust fails to file Form 3520-A timely and its US owner fails to submit a substitute Form 3520-A timely, then the US owner (I emphasize: not the foreign trust, but its US owner) will be subject to heavy Form 3520-A penalties.

The main penalty in this case would be $10,000 or 5% of the gross value of the foreign trust, whichever is higher. The “gross value” here means the portion of the foreign trust’s assets at the end of year treated as owned by US persons.

Additional penalties may apply if noncompliance lasts more than 90 days after the IRS mails a “failure to comply” notice. The US owner also may be subject to the underpayment penalties for failure to report income indicated on Form 3520-A. Finally, criminal penalties may be imposed under IRC §§7203, 7206 and 7207 for failure to file on time and for filing a false or fraudulent return.

2023 Form 3520-A Deadline: Where to File

The foreign trust needs to file Form 3520-A (including the statements on pages 3 and 5) at the following address:

Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

I recommend mailing Form 3520-A by US Certified Mail. I want to emphasize for the US readers who are mailing their returns – do NOT attach Form 3520-A to your US tax return. It must be mailed separately from your US income tax return to the address I indicated above.

2023 Form 3520-A Deadline: When to File

The deadline for Form 3520-A can also be tricky. Generally, the due date for Form 3520-A is the 15th of the third month after the end of the trust’s tax year.

However, if you are filing a substitute Form 3520-A with your Form 3520, then your substitute Form 3520-A is due by the due date of Form 3520. The trust must also supply the Foreign Grantor Trust Owner Statement and Foreign Grantor Trust Beneficiary Statement to its US owners and US beneficiaries by the 15th of the third month after the end of the trust’s tax year, unless an extension is filed.

The foreign trust may file Form 7004 to request an automatic six-month Form 3520-A filing extension (it also applies to the aforementioned Statements). Note that filing Form 7004 is the only way to request this six-month extension. A common procedural tax trap is for people to file an income tax return extension (Form 4868) and think that this would apply to Form 3520-A. This is incorrect – you must separately file Form 7004 to get an extension on your Form 3520-A.

Thus, the current outstanding 2023 Form 3520-A deadline for a calendar-year filer is March 15, 2024. If Form 7004 is filed, then the extended 2023 Form 3520-A deadline for this filer would be September 16, 2024.

Contact Sherayzen Law Office for Professional Help With Your 2023 Form 3520-A Deadline

If you are required to file Form 3520-A or if you have not complied with your Form 3520-A reporting requirements in the past, you need to contact Sherayzen Law Office for professional help! Sherayzen Law Office is an international tax law firm that specializes in offshore voluntary disclosures (including the ones that involve Form 3520-A) and US international information returns compliance. We can help you!

Contact Us Today to Schedule Your Confidential Consultation!