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Video instructions and help with filling out and completing Are Form 843 Amend

Instructions and Help about Are Form 843 Amend

Hey Anthony hey hey we're continuing form 5471 series first part we talked about what's a controlled foreign corporation then we talked about the history the crazy history and today we want to talk about the penalties that's right the iris currently is not focused on form 5471 penalties but that could change if they run out of revenue from f bars right I think that's that our concern is right now it's not a big focus of them the exposures there that's for sure and just like f bar exposure was always there most CPAs just sort of they knew about the f bar they didn't bother filing because well what what's what's the iris isn't going to penalize you anyway you're not evading taxes so you know who cares so sort of the same I think unfortunately sort of the same thinking is coming to place because we're running into cases where people have hired law firms to do a voluntary disclosure they do a voluntary disclosure and they're missing forum 5471 wow so and in it there's actually ways you can avoid some of the recognition and filing it during the standard one but going forward you need to know it's there and so it's something that people are just missing out and then in streamline offshore disclosures it is something that has to be there so people are submitting incomplete voluntary disclosures because these foreign reporting forms are rather complicated the IRS has not made them a focus yeah but really hate right yeah and it hasn't really pushed it in the news that this exists and it's really you could have we did have a client in many countries that you if you're a u.s. person you title everything in the name of a corporation because you are a target for a lawsuit we had a client who bought some jet skis or bought a jet ski I think and he put that into a controlled foreign corporation it was a foreign corporation in Costa Rica yeah and guess what that meant in the the asset level met the the qualification a requirement to file for 5471 Wow on a jet ski oh boy yeah and two important things to note here is one we've mentioned before the iris is getting better at keeping electronic records he's going to be easier for them to go back in time yeah once they realize they might be able to get money right lt's yeah and this is last on my list but i think i want to talk about it first is if you fail to file form 5471 your entire tax return remains open for audit indefinitely yeah so they can go back as long as they have records and technically penalize you right it isn't that a wonderful little way to you know that's a nice little can opener to get into anything your your time limited no we're not right now here's this small little form you forgot that doesn't do anything to raise or lower your taxes no it's just an informational reporting form like an f bharat form is f bar doesn't ask you you know does you know finally an f we are not finally f bar does isn't the thing that increases your taxes worldwide tax jurisdiction is what pieces your taxes the same thing is true here doesn't even have any impact whatsoever now on what you are you're your taxes are but the failure to file it can be devastating right so let's start with that important fact number one even if you don't owe money even if you get a refund that has nothing to do with the filing requirement you have to fill out this form no matter what correct k so we've got a base penalty of ten thousand dollars perform per year if it's filed late inaccurately or not at all so even if you have someone else prepare it and you sign it if it's inaccurate you're responsible yeah and now again you know the it's the same sort of thing like the f bar there's no late f bar penalty there is an f bar non-filing penalty and so you know filing on june july first this year would make it hey you could be subject to an f bar penalty now the truth is they haven't I haven't seen in case of them doing that yet but they will they they certainly can i'll actually i did see a case we did we did have a case where they assessed AF bar penalty for a case where the f bar was filed about five months after the due date with a no vdi submission they did assess the FR penalty for that so that was somewhat ridiculous so it can happen now that we just haven't seen them assessing 5471 penalties much at all so we're not trying to scare people to say hey look they've been doing this we're saying that they can which maybe even be more scarier right form 5471 as a side note should be filed with your income tax return and extensions do apply to this form we have an extension on your income tax it applies to form 5470 which by the way this that's that's what's check the d4 in 2022 your 2022 f bar will have the same thing it's going to be do with your 1040 if you file an extension will be do with your 1040 in the extension so the june thirtieth date will be gone next year yes let's simplify as much as we can so next when we're talking about that bass penalty of ten thousand dollars perform per year if the information is not provided within 90 days after the IRS mail to notice to you letting you know that you hadn't filed or made an error an additional ten-thousand-dollar penalty per foreign corporation can be.

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