U.S. individuals with foreign financial accounts and assets face complex reporting requirements and potentially severe civil penalties for noncompliance. This focused 2-hour program provides a practical overview of key international reporting obligations for individuals, including FBAR (FinCEN Form 114), FATCA reporting (Form 8938), and related information returns. Participants will review filing thresholds, definitions of foreign financial accounts and specified foreign financial assets, and common problem areas such as foreign trusts, gifts, and ownership of foreign entities. The course emphasizes penalty structures, IRS enforcement trends, and compliance strategies designed to help practitioners identify risks and guide clients in avoiding costly mistakes. Through practical examples and case-based discussion, attendees will gain clarity on when reporting is required, how forms interact, and how to minimize exposure to significant penalties.
Learning Objectives
Upon completion of this program, participants will be able to: 1. Identify U.S. reporting requirements for foreign financial accounts and specified foreign financial assets. 2. Determine when FBAR (FinCEN Form 114) and Form 8938 filing thresholds are met. 3. Differentiate between common international information returns required of individuals (e.g., Forms 3520, 5471, 8865). 4. Recognize civil penalty structures and IRS enforcement mechanisms related to foreign reporting failures. 5. Apply practical compliance and documentation strategies to reduce client exposure to significant penalties.
Major Topics
MAJOR TOPICS Overview of U.S. International Reporting Regime • Worldwide income taxation for U.S. persons
• Distinction between income reporting and information reporting
• Key enforcement priorities FBAR (FinCEN Form 114)
• Who must file
• Definition of foreign financial account
• $10,000 aggregate threshold
• Signature authority considerations
• Civil penalty framework (non-willful vs. willful violations) FATCA Reporting – Form 8938
• Specified foreign financial assets
• Filing thresholds (U.S. residents vs. taxpayers living abroad)
• Coordination and overlap with FBAR
• Statute of limitations implications Other Common Individual Foreign Information Returns
• Form 3520 (foreign gifts and trusts)
• Form 5471 (controlled foreign corporations)
• Form 8865 (foreign partnerships)
• Overview of Form 8621 (PFIC reporting) Penalties and Enforcement
• Civil penalty structures
• Accuracy-related penalties and extended statutes
• IRS audit trends
• Reasonable cause defenses Compliance and Risk Management
• Client intake and due diligence procedures
• Documentation best practices
• Amended filings and delinquent submission procedures
• Practitioner ethical responsibilities
