Using the IRS streamlined OVDP for Form 5471 Amnesty

Using the IRS streamlined OVDP for Form 5471 Amnesty

http://ift.tt/2wU9O46 The lesser known Form 5471 penalties, and how to decrease your risk of falling victim to these penalties   It’s a form that US owners of certain foreign corporations need to file. 1. Failure to file can result in a $10,000 penalty -- per occurrence.  2. The statute of limitations on assessment is much longer than people realize.   This is something the IRS is actively going after: In a recent case, the IRS assessed twelve(!) Form 5471 penalties against consultant who did business under a Canadian corporation. This resulted in a $120,000 tax penalty. A tax penalty that Canada actually helped the IRS collect.   The Streamlined Program It was created not just for FBAR amnesty, but it was also created Form 5471 amnesty.   Qualifications: 1. "Did you know that you had a Form 5471 filing requirement?"   2. Your subjective intent is the critical issue. 3. Don’t make assumptions about your situation 4. Every one of our offshore clients made some sort of mistake. 5. Yet, many mistakes are not large enough to make someone ineligible for the Streamlined program.   If you don't qualify for the Streamlined Program, the Full Offshore Disclosure Program is still available. We just prefer the Streamlined program because in terms of time and cost, it is much, much less onerous for our clients. The benefits of Streamlined OVDP for missing or incorrect Form 5471s  1. Only three years of Form 5471s are required 2. No penalty for filers who live outside the US. 3. A 5% penalty on stock value for those living in the US. There are many way to legitimately claim a low valuation of your controlled foreign corporation. 4. A much quicker process than full OVDP. 5. You'll learn how to properly file Form 5471s going forward. 6. Any other missing forms can all too be included in a Streamlined Disclosure. For example: missing Forms 8938, 8865, 3520, 3520A (foreign pensions), and 8621 Parent & Parent LLP 60 East 42nd Street SUITE 4600 New York, NY 10165 (212) 256-1335 info@irsmedic.com https://youtu.be/rSuvAg33Rg8 IRS Medic