Form 3520 Penalty Appeal

Form 3520 Penalty Appeal 

Form 3520 Penalty Appeal: When the IRS issues a penalty for not timely or accurately filing a Form 3520, the penalties can be tough. When it comes to foreign gifts, the penalty is usually 25% of the value of the gift. When it comes to trusts, the penalties stagger based on the type of trust transaction involved. When a person receives a Form 3520 Penalty, it is usually in the form of a CP15 Notice. And, in recent years, the IRS has begun aggressively issuing automatic assessment of penalties.

When a U.S. Person receives a Form 3520 Penalty, they have a limited time to respond.

What are the Form 3520 Penalty Appeal procedures?

Appealing a Form 3520 Penalty

Like most people, the Form 3520 penalty will arrive by way of a CP15 Notice. That notice provides very specific time requirements in order to respond. Usually, the taxpayer will be granted 30-days to respond.

Time to Respond to the Penalty Notice

The standard language on the back of a CP15 Notice is as follows:

“If you wish to appeal this penalty, send the IRS at the address shown on page 1 of this notice a written request to appeal within 30 days from the date of this notice.

Your request should include any explanation and documents that will support your position.

Your explanation should reflect all facts that you contend are reasonable cause for not asserting this penalty.”

A very important phrase in this penalty notice is that the 30-days runs from the date of the notice, and not the date you receive it.

Written Request to Appeal

Preparing the written request to appeal is the most important document. It will be the primary document associated with your appeal request. It is crucial that the letter effectively captivates the facts and circumstances, along with why the IRS should abate your penalties.

Late Filing Form 3520 Specialist Team

Our firm specializes exclusively in international tax, and specifically IRS offshore disclosure, including help clients with late reporting of Forms 3520 and 3520-A.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.

Each case is led by a Board-Certified Tax Law Specialist with 20-years experience, and the entire matter (tax and legal) is handled by our team, in-house.

*Please beware of copycat tax and law firms misleading the public about their credentials and experience.

Less than 1% of Tax Attorneys Nationwide Are Certified Specialists

Our lead attorney is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.

Recent Case Highlights

  • We represented a client in an 8-figure disclosure that spanned 7 countries.
  • We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
  • We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
  • We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
  • We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.

How to Hire Experienced Offshore Counsel?

Generally, experienced attorneys in this field will have the following credentials/experience:

  • 20-years experience as a practicing attorney
  • Extensive litigation, high-stakes audit and trial experience
  • Board Certified Tax Law Specialist credential
  • Master’s of Tax Law (LL.M.)
  • Dually Licensed as an EA (Enrolled Agent) or CPA

Interested in Learning More about our Firm?

No matter where in the world you reside, our international tax team can get you IRS offshore compliant.

We specialize in FBAR and FATCA. Contact our firm today for assistance with getting compliant.

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