Click here to read the Spanish translation.

Now that we’re in the middle of tax season, those persons (individuals and entities) who own non-U.S. companies, as well as those with overseas financial accounts, need to be aware of the various penalties for not filing certain international informational tax returns. For example:

 
•The penalty for not filing a Form 5472 is now $25,000 (it used to be $10,000). This form is applicable to foreign owners of U.S. corporations and LLCs.
 
•For not filing a Form 5471, which needs to be included in a U.S. person’s income tax return if they own non-U.S. companies with a percentage of at least 10%, the penalty is $10,000.
 
Something else to be aware of is the fact that all U.S. persons (including trusts and single-member LLCs) that have financial accounts outside of the United States with an aggregate highest balance of more than $10,000 at any time during the calendar year are required to file an “FBAR.” Failure to file this form also brings a penalty.
 
For a comprehensive list of forms you may be required to file, as well as assistance with filing these forms, contact me today to avoid paying high penalties. I am happy to help! 

Please note: This content is intended for informational purposes only and is not a replacement for professional accounting or tax preparatory services. Consult your own accounting, tax, and legal professionals for advice related to your individual situation. Any copy or reproduction of our presentation is expressly prohibited. Any names or situations have been made up for illustrative purposes — any similarities found in real life are purely coincidental. 

About the Author 

Alicea Castellanos is the CEO and Founder of Global Taxes LLC. Alicea provides personalized U.S. tax advisory and compliance services to high net worth families and their advisors. Alicea has more than 17 years of experience. Prior to forming Global Taxes, Alicea founded and oversaw operations at a boutique tax firm, worked at a prestigious global law firm and CPA firm. Alicea specializes in U.S. tax planning and compliance for non-U.S. families with global wealth and asset protection structures which include non-U.S. trusts, estates and foundations that have a U.S. connection.

Alicea also specializes in foreign investment in U.S. real estate property, and other U.S. assets, pre-immigration tax planning, U.S. expatriation matters, U.S. persons in receipt of foreign gifts and inheritances, foreign accounts and assets compliance, offshore voluntary disclosures/tax amnesties, FATCA registration, and foreign companies wanting to do business in the U.S. Alicea is fluent in Spanish and has a working knowledge of Portuguese.

Alicea is an active member of the Society of Trusts & Estates Practitioners (STEP), the New York City Bar, the New York State Society of Certified Public Accountants (NYSSCPAs), the American Institute of Certified Public Accountants (AICPA) and the International Fiscal Association (IFA).  She is the New York/Northeast Regional Representative of the Women of IFA Network (WIN). Distinctly, in 2020, Alicea was awarded with a prestigious NYSSCPA Forty Under 40 Award. She was selected as someone that has notable skills and is visibly making a difference in the accounting profession.

Please note: This content is intended for informational purposes only and is not a replacement for professional accounting or tax preparatory services. Consult your own accounting, tax, and legal professionals for advice related to your individual situation. Any copy or reproduction of our presentation is expressly prohibited. Any names or situations have been made up for illustrative purposes — any similarities found in real life are purely coincidental. 

See our latest News

Alicea Castellanos

DOING BUSINESS IN AMERICAN STATES CAN NOW LEAD TO REPORTI...

October 14, 2024

Alicea Castellanos

HACER NEGOCIOS EN ESTADOS AMERICANOS AHORA PUEDE GENERAR ...

October 14, 2024

Minh Nguyễn Hoàng

How to Obtain a Vietnam Investment Registration Certifica...

October 14, 2024

Minh Nguyễn Hoàng

Demystifying Vietnam’s FDI Screening Process: What ...

October 14, 2024

Sareesh Rawat

Determining Enforceability of Teaming Agreements

October 13, 2024

Minh Nguyễn Hoàng

Comprehensive Guide to FDI Regulations in Vietnam: What I...

October 12, 2024

Minh Nguyễn Hoàng

Mastering the Process of Obtaining Foreign Investment Lic...

October 12, 2024

Minh Nguyễn Hoàng

Navigating Vietnam’s Investment Laws: A Foreign Investor’...

October 12, 2024

Minh Nguyễn Hoàng

International Wills in Vietnam: Ensuring Recognition and ...

October 10, 2024

Minh Nguyễn Hoàng

Expat’s Guide to Vietnamese Inheritance Tax: Minimi...

October 10, 2024