Foreign Asset Reporting for Trusts and Estates: Impact of Loper Bright, FATCA, FBAR, Forms 3520, 5471, and 8865
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Estate Planning
- event Date
Tuesday, October 1, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
This CLE/CPE webinar will provide tax professionals guidance on required foreign reporting obligations, best practices for avoiding penalties, and how to resolve past noncompliance for trusts and estates. The panel will discuss the potential impact of the SCOTUS ruling in Loper Bright, FATCA and FBAR requirements and compliance, necessary tax forms, and other key issues for the reporting of foreign assets for trusts and estates.
Mr. Kennedy has more than 42 years of experience dealing with a variety of international tax matters, specializing in tax consulting services to a wide variety of clients ranging from closely held companies to multi-national businesses. His expertise includes domestic and foreign income and social security tax planning, tax compliance for individuals and corporations, tax treatment of incentive compensation plans, international assignment program administration, and international assignment policy design. Mr. Kennedy has also served as the U.S. practice leader for international social security matters for a Big 4 accounting firm. He is a frequent speaker in the areas of international tax compliance and reporting obligations U.S. information reporting requirements for foreign assets and foreign entities, U.S. tax implications of foreign pension and social security plans, and U.S. income and social tax treaty planning. Mr. Kennedy is a member of the Texas Bar and is licensed as a certified accountant in Georgia and Texas. He has a B.A. from Furman University and a J.D. from Vanderbilt University School of Law.
Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has published assorted national articles and given innumerous national and local presentations on assorted areas of international tax. He is licensed to practice in the State of New Jersey and the Commonwealth of Pennsylvania.
Mr. Heuer focuses his practice on international income and transfer tax matters. He assists high-net-worth individuals and families throughout the world with complex tax issues arising from their ties to the United States. Mr. Heuer works with trust companies, financial advisors as well as foreign banks and lawyers on international strategies for investment within the United States and abroad. He also helps cross-border families with the preservation and transmission of their wealth. He routinely provides corporate and tax advice in a wide variety of global transactional matters. This includes inbound and outbound analysis, tax treaty examination and tax-efficient structures for multinational companies. Mr. Heuer also advises clients on cross-border mergers, acquisitions, dispositions, joint ventures, spin-offs and tax-free reorganizations. In addition, he provides counsel on the various tax reporting requirements of doing business with the United States. This includes tax compliance for foreigners with businesses and investments in the United States as well as Americans with offshore investments. Mr. Heuer drafts tax compliance memoranda and evaluates FATCA and CRS classifications and obligations. He also assists with expatriation and counsels noncompliant taxpayers through the various voluntary disclosure programs. Mr. Heuer is an adjunct professor in the LLM Tax Program at Northwestern Pritzker School of Law, where he teaches international estate planning.
U.S. federal tax reporting requirements for foreign assets and gifts apply to U.S. persons, citizens, and resident aliens along with some special rules for individuals residing in U.S. territories. Due to the complexity of these tax rules and reporting requirements, executors and counsel must include determining a taxpayer's U.S. tax compliance with respect to foreign assets as a necessary step when reviewing, settling, or reporting a decedent's estate.
The government is able to assess and collect FBAR liability and penalties from beneficiaries and executors after a decedent's date of death and after assets are distributed. 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 percent of the account balance, whichever is larger. Counsel must be able to identify and distinguish between a potentially willful or non-willful violation to accurately advise clients.
In addition to the FBAR, Form 3520 may need to be filed when a U.S. person receives a gift, inheritance, or distribution from a nonresident alien, foreign estate, and certain foreign trusts. In addition to the 3520, owners of foreign grantor trusts must file Forms 8938 and the FBAR. Such owner must also ensure that the trust itself annually files 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner.
Furthermore, the recent SCOTUS decision in Loper Bright significantly changes key aspects of tax and estate planning. The Court's overturning of the Chevron doctrine removed the deference and latitude federal judges would give agencies over how to interpret the statutes they administer when disputes arise. This could have a profound impact on specific tax planning considerations, taxpayer and IRS disagreements, how tax regulations are issued, and more.
Listen as our panel of experts discusses identifying trusts and estates with foreign reporting obligations, the current government initiative to assess penalties, and the impact of Loper Bright, as well as outlines best practices for bringing taxpayers into compliance.
- Responsible parties
- FATCA and FBAR reporting requirements
- Forms 3520 and 3520-A
- Other reporting obligations
- Impact of Loper Bright Enterprises v. Raimondo
- Handling past noncompliance
The panel will discuss these and other critical issues:
- Identifying willful and non-willful FBAR violations
- Uncovering reportable foreign assets held by trusts and estates
- Forms 3520 and 3520-A for foreign gifts and distributions received
- Impact of SCOTUS' ruling in Loper Bright Enterprises v. Raimondo
- Handling past noncompliance
Learning Objectives
After completing this course, you will be able to:
- Identify potential foreign asset reporting obligations of trusts and estates
- Discern between willful and non-willful FBAR violations
- Ascertain when Form 3520 must be filed
- Determine the best steps to resolve past noncompliance
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Two years+ business or public firm experience at mid-level within the organization, supervising other preparers/accountants, preparing complex individual tax forms and schedules. Familiarity with entity classification rules for foreign holdings.
Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
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