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  • Foreign Asset Reporting for Trusts and Estates: Impact of Loper Bright, FATCA, FBAR, Forms 3520, 5471, and 8865

Description

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.

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.

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.


Learning Objectives:

  • Responsible parties
  • FATCA and FBAR reporting requirements
  • Forms 3520 and 3520-A
  • Other reporting obligations
  • Impact of Loper Bright Enterprises v. Raimondo
  • Handling past non compliance

Benefits:

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 non compliance

Credits and Other information:

  • Recommended CPE credit – 2.0
  • Recommended field of study – Taxes
  • Session Prerequisites and preparation: None
  • Session learning level: Basic
  • Location: Virtual/Online
  • Delivery method: Group Internet Based
  • Attendance Requirement:  Yes
  • Session Duration: 2 Hours
  • Case Studies and Live Q&A session with speaker
  • PowerPoint presentation for reference

Who Will Benefit:

  • CPA
  • Enrolled Agents (EAs)
  • Tax Professionals
  • Attorneys
  • Other Tax Preparers
  • Finance professionals
  • Financial planners


Speaker Profile:
Patrick McCormick, JD, LLM

Patrick McCormick is an attorney with over a dozen years of experience, focusing his practice specifically on international taxation. Mr. McCormick represents both business and individual clients on all aspects of United States international tax rules, both from an income tax and estate/gift tax perspective. Having previously served as a partner at a large law firm, a midsized accounting firm, and a boutique tax law firm, Patrick’s client exposures have covered every conceivable area of American-side international tax matters. Patrick has also represented every type of taxpayer – from multibillion-dollar business enterprises and ultra-high net worth individuals to startups and individuals with complex questions but limited budgets.

Mr. McCormick has worked with clients located in over 90 countries on American tax considerations of multinational activities, cultivating specialized knowledge in every area of United States international tax rules. His explicit practice focus has facilitated an unparalleled expertise in the field; Patrick is trusted by clients and advisors around the world to obtain optimal results on international tax matters.

Mr. McCormick is a primary and prolific authority on tax matters. He has spoken on all aspects of international tax to hundreds of thousands of attendees around the globe, functioning as the primary international tax resource for national organizations including Pioneer Educator, Strafford, Lawline, and Leimberg Information Services. Patrick has presented for the American Bar Association, the American Immigration Law Association, and state and local bar associations around the United States. He is a regular contributor to America’s premier tax law publications, including Tax Notes, Journal of Taxation, Tax Notes International, Law360, and Practical Tax Lawyer.

Mr. McCormick published his first treatise on international tax matters, Allocation and Apportionment Rules Under Secs. 861-865, for Thomson Reuters’ Catalyst platform, in October 2021. In late 2021, he also released a 15-hour digital course entirely dedicated to nonresident taxation, United States Tax Considerations for Nonresident Taxpayers. Mr. McCormick has been named a Super Lawyers Rising Star from 2016-2022.

Foreign Asset Reporting for Trusts and Estates: Impact of Loper Bright, FATCA, FBAR, Forms 3520, 5471, and 8865

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