Offshore Disclosure - What do I need to disclose

Offshore accounts that must be disclosed include:

Foreign Bank Accounts, Investment Accounts, Mutual funds and RRSPs or similar investments must be reported.

If  the total combined balances are greater than $10,000 penalties range from $10-100,000 US. Form TD F 90-22.1 must be filed.



Gifts from a foreign (Non-US Person) need to be reported on Form 3520.

Penalties start at 35% of the fair value of the gift received by a US citizen from a non-US person.



Form 3520-A must be filed if a US person owns a foreign trust.

Penalties start at 5% of the gross value of the assets owned by the trust.



Form 5471 must be filed if a US  person completes a transaction during the year with a controlled foreign  corporation.



Penalties range from $10,000 to $50,000 per year.

Form 5472 must be filed if 25% of US corporation is owned by foreigners.

Penalties for failure to file start at $10,000 for the first year and increase by  $10,000/month after 3 months of non-filing. Penalties can be assessed at 10%  of the value of the property transferred by the US person to the foreign trust up to $100,000.



Form 926 must be filed if a US person transfers property to a foreign corporation.

Penalties will be assessed at $10,000 in the first month that a return is late and  $10,000/month starting in the third month up to $100,000 US.

Form 8865 must be filed if a US person owns a non-US partnership.

Fraud  penalties are typically 75% of the unpaid tax.



Late filing penalties will be assessed at 5% per month that a return is late to a maximum of 25% of the unpaid tax.



Failure to file an accurate tax return can be assessed at 20% of unpaid tax.