There’s a little golden ticket in the FAQ the IRS has just published.
This has to do with people who did not file the magic forms disclosing ownership of a foreign corporation (Form 5471) or foreign trust (Form 3520). What if you had no tax due, but you just screwed up on that paperwork? For you, the answer is really good. You can file these things with no penalty if you do it before September 23 and you send it in to the address that the IRS has in Philly.
This, above all else, is well worth doing. If all you’ve done is screwed up on these forms, just do it. So, for instance, there is one situation that comes up again and again for us in Southern California: people who have real estate in Mexico. They own the real estate through a Mexican trust called a Fideicomiso. That’s a foreign trust. The IRS says you have to file Form 3520.
You didn’t do it. You bought that condo down in Baja and you haven’t filed that thing all these years. Just do it. If you have any questions give me a call. My phone number is 626‑689‑0060, that’s my office number. My cell number is 626‑437‑2500. I’m on the west coast of the United States, Pacific Time zone, so call when I’m awake.
-Phil
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