This webinar will identify and explain the many required foreign reporting obligations, best practices for avoiding penalties, and how to resolve past noncompliance for trusts and estates. This webinar is for tax preparers, fiduciaries, and other professionals working with trusts and estates.
The government assesses and collects FBAR liability and penalties from beneficiaries and executors after a decedent's date of death and after assets are distributed. In United States v. Park, No. 16 C 10787 (N.D. Ill. May. 24, 2019), for example, the penalty assessed was over $3.5 million. Executors and tax professionals must include determining a taxpayer's compliance with foreign reporting obligations as a necessary step when reviewing, settling, or reporting a decedent's estate.
The penalty for non-willful FBAR violations is $10,000; this can be waived for reasonable cause. Willful non-filing, however, can result in penalties of $100,000 or 50% of the account balance, whichever is larger, as assessed in U.S. v. Park. Advisers must be able to identify and distinguish between a potentially willful or non-willful violation to accurately advise clients.
Form 1040, Schedule B, asks: "During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If 'Yes,' you may have to file Form 3520. See instructions."
In addition to the FBAR, Form 3520 must be filed when a person receives a gift, inheritance, or distribution from a trust established by a foreign entity or individual. In addition to the 3520, owners of foreign trusts must file Forms 8938 and the FBAR. The trust itself must annually file for 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. Parts II and III of the form require reporting a complete set of books for the entity, an income statement, and a balance sheet.
Listen as our panel of experts discusses identifying trusts and estates with foreign reporting obligations, reviews the current government initiative to assess penalties, explains the completion of required forms and outlines best practices for bringing taxpayers into compliance.
The panel will discuss these and other critical issues:
The government assesses and collects FBAR liability and penalties from beneficiaries and executors after a decedent's date of death and after assets are distributed. In United States v. Park, No. 16 C 10787 (N.D. Ill. May. 24, 2019), for example, the penalty assessed was over $3.5 million. Executors and tax professionals must include determining a taxpayer's compliance with foreign reporting obligations as a necessary step when reviewing, settling, or reporting a decedent's estate.
The penalty for non-willful FBAR violations is $10,000; this can be waived for reasonable cause. Willful non-filing, however, can result in penalties of $100,000 or 50% of the account balance, whichever is larger, as assessed in U.S. v. Park. Advisers must be able to identify and distinguish between a potentially willful or non-willful violation to accurately advise clients.
Form 1040, Schedule B, asks: "During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If 'Yes,' you may have to file Form 3520. See instructions."
In addition to the FBAR, Form 3520 must be filed when a person receives a gift, inheritance, or distribution from a trust established by a foreign entity or individual. In addition to the 3520, owners of foreign trusts must file Forms 8938 and the FBAR. The trust itself must annually file for 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. Parts II and III of the form require reporting a complete set of books for the entity, an income statement, and a balance sheet.
Listen as our panel of experts discusses identifying trusts and estates with foreign reporting obligations, reviews the current government initiative to assess penalties, explains the completion of required forms and outlines best practices for bringing taxpayers into compliance.
The panel will discuss these and other critical issues:
Patrick J McCormick
Patrick J McCormick is a partner with Culhane Meadows, a United States law firm with prominent experience and specialty in the international realm. Patrick practices exclusively in the area of international taxation; he has extensive experience in handling complex tax planning, structuring, and compliance issues for foreign businesses with United States operations, United States businesses with foreign operations, and individual taxpayers with international ties. He regularly works conjunctively with advisors both in the United States and abroad to assist with international tax issues faced by their clients.Patrick is a prolific contributor to a multitude of tax journals and legal publications, …
The Anti-Kickback Statute: Enforcement and Recent Updates
I-9 Enforcement & Compliance: A 5-Step Plan for Employers t…
Emotional Intelligence: Mastering the Emotions of Great Lea…
Wage & Hour Laws: Ensuring Compliance with the Fair Labor S…
Expense Reimbursements 2026 - Proper Recordkeeping and Acco…
Unlock Employee Loyalty: Stay Interviews Will Keep Them Eng…
Claude AI For CPAs & Finance Professionals: Best Practices …
Dealing With Difficult People: At Work & In Life
Construction Lending And Real Credit Administration: Evalua…
Mastering the Prompt: How Every Professional Can Use AI to …
Secrets Of The Staffing Fix - Solving The Employee Training…
Eliminate Harmful And Unproductive Drama In The Workplace
Setting SMART Goals & Leveraging Storytelling for Reporting
Using Copilot to Format Legal Documents in Microsoft Word
Excel + AI: The Smart User's Guide to Faster, Easier Work w…
Discover how Emotional Intelligence turns AI from a technic…
Introduction to Microsoft Power BI Dashboards
Excel Spreadsheets; Develop and Validate for 21 CFR Part 11…
Major cGMP Issues: FDA Concerns in 2026
Elevate Your Workplace Wellness: 10 Critical Wellness Facto…
Excel - Pivot Tables - The Key To Modern Data Analysis and …
Maximizing Productivity with ChatGPT: AI Solutions for HR, …
Outlook - Master your Mailbox - Inbox Hero Inbox Zero
6-Hour Virtual Boot Camp on Microsoft Power BI
Managers/Supervisors: New Role, Same Team - How to Lead Wit…
HR Auditing - New Update on Important Issues for 2026
2-Hour Virtual Seminar on In-Person Onboarding Your New Hir…
Managing Toxic Employees: Strategies For Leaders To Effecti…
Project Management for administrative professionals
Creating Employee Handbooks that Protect You and Support th…
California Meal and Rest Breaks: What You Don't Know Can Co…
Tools for New Managers: Connecting with Employees to Optimi…
Female to Female Hostility @Workplace: All you Need to Know
Launch Your Career: The Ultimate Guide for Emerging Profess…
Managing Difficult Employee Conversations
Thriving in a Hybrid Workplace: Keys to Leadership and Team…
The Perfect Storm Coming to Healthcare: Value Based Care Me…
Practice Safe Stress ™: Preventing Burnout While Building R…
AI, Jobs, and Skills: How HR Leaders Can Prepare Now for th…
The Age-Inclusive Workplace: How to Lead and Work Across Ge…
Rewiring Your Emotional Triggers: Leading with Clarity and …