A Simplified Procedure to Allow Late Filed Forms 8891 for Individuals With Canadian Retirement Plans and Relief From FBAR Penalties for Foreign Retirement Accounts
- May 6, 2012
- 1 min read
This paper was presented in Washington, D.C. as part of the annual delegation of attorneys by the California Lawyers' Association, Taxation Section. This paper was written by Steven L. Walker and Philip D. W. Hodgen. Mr. Walker is a former Chair of the Taxation Section.
An individual living in the United States may own a retirement plan from another country. The Internal Revenue Service (“IRS”) takes the position that certain foreign retirement accounts are foreign trusts and subject to the onerous reporting requirements of section 6048 of the Internal Revenue Code of 1986, as amended (the “Code”) and the penalties of Code section 6677, if a Form 3520 or Form 3520-A is not timely filed. Most taxpayers with interests in foreign retirement savings plans are unfamiliar with these requirements.
