Form 8865 Streamlined 2023-2024

Hello Anthony, hello Claudia. We're here today to talk about the lesser-known Form 5471 penalties and how to decrease your risk of falling victim to these penalties. Now, it's a form that US owners of certain foreign corporations need to file, but the failure to file (and I'm assuming it's the same for misfiling) can result in a $10,000 penalty per occurrence per year. The statute of limitations and assessment is also much longer if you don't file your Form 5471s, correct? That's right, and some of that changed with the Hire Act of 2010. Some of it just has to do with how the law was originally written. Now, I would say this is well-v 154 71. If you actually look at the code, the IRS has the ability to penalize you if you over-file, but if you file something you don't need to file and the IRS determines it wasn't quite necessary, they can also penalize you. So, it is a very, rather insane sort of form. Okay, now we know that this is something the IRS is actively going after. We saw a case in Canada recently, right? There was a case in Canada that just came out where the taxpayer had a consulting corporation and didn't file Form 5471. The IRS assessed 12 different Form 5471 penalties for a total of $120,000, and that was a tax penalty that Canada helped us collect. That's crazy. And he did try to come into compliance with his FBARs, and that's when they caught the Form 5471. Now, what a lot of people don't realize is you can actually use the streamlined offshore disclosure program for Form 5471s, not just FBARs. That's right, yeah. And there are a lot of reporting forms that the streamline program can take care of, as long...