Even if the person does not have to file a Tax Return, they still must submit the Form , if applicable. To request an extension to file Form , the person files for a regular extension with their tax return Form The Form A has more specific requirements. In order to request an extension:. In order to avoid a penalty, a person must submit a detailed and effective Form reasonable cause statement.
Just throwing together a paragraph or two and sending it off to the IRS with the delinquent forms is not sufficient. Alternatively, if other reporting such as FBAR and FATCA is necessary, then the person may want to consider a voluntary disclosure aka offshore tax amnesty submission in lieu of reasonable cause. Internal Revenue Service Center P. Our firm specializes exclusively in international tax, and specifically IRS offshore disclosure.
Check out these examples to know how the requirements are triggered and more Form instructions. Example 1: Alex, a US citizen, lives in Kansas with his parents. Form Needed? Yes, Alex is a US person who received a distribution from a foreign trust, and as a result, must file Form , page one and Part III to report this distribution. Form A Needed? Example 2: Alex, a US citizen, lives in Kansas with his parents. The grandfather decides to write a check to Alex from his personal savings account held in Spain.
There is no reporting requirement for Form Alex is not an owner of a foreign trust, and he has not received any distributions from a foreign trust.
Form A is not applicable. Example 3: Marina, a US citizen, lives in Germany and opens a private pension plan. Marina makes all contributions to the plan; it is managed by a trustee who takes title to the property to conserve the funds for Marina, the beneficiary. The trust is protected from creditors. To embed, copy and paste the code into your website or blog:. Conclusion Tax return preparers whose clients may have Form and Form A reporting requirements must be aware of these unique reporting obligations.
Send Print Report. Blank Rome LLP. Published In: IRS. Reporting Requirements. Tax Planning. Blank Rome LLP on:. Sign Up Log in. This form needs to be filed by March 15th each year. An automatic six-month extension may be granted if requested by filing a Form Sometimes you may be required to fill out a Form to report transactions or new ownership of a trust due to inheritance.
If you file a substitute Form A with your Form , then the Form A is due by the due date of the Form , which is the regular tax filing deadline of April 15th. You should identify your foreign trust by EID Employer Identification Number; if it does not have one you must apply for one. If you have a foreign trust that meets grantor trust rules, it must be reported on Form A.
See I. The penalties are imposed upon the U. Form A is due by March 15 , not April 15, like most tax forms. If you need to file an extension to file your , use Form Form , on the other hand, is due on April See Instructions for Form However, those who are on military or naval duty outside of the U. The same is true for any individuals who live and have their place of business or post of duty outside of the U.
Pay close attention to these dates.
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