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Dianne Mehany Analyzes Reasonable Cause Defenses to 3520 Penalties at ABA Fall Tax Meeting

October 5, 2019
Panelist:Dianne C. Mehany
Program:To Err is Human, to Forgive Divine: A Guide to Reasonable Cause And Other Defenses to Form 3520 Penalties
Event Sponsor:2019 ABA Section of Taxation Fall Meeting

Hyatt Regency San Francisco

5 Embarcadero Center

San Francisco, CA 94111

Registration:Click Here To Register

When a U.S. person establishes or receives a distribution from a foreign trust, or when a U.S. trust or U.S. individual receives a gift from a foreign donor, a Form 3520 must be filed, with non-compliance, unless due to reasonable cause, subject to large monetary penalties. Panelists will review possible defenses to Form 3520 penalties, such as case law exempting transactions reconstructed for substantive U.S. tax law as deemed gifts, reliance on professional tax preparers, and the constitutional prohibition on excessive fines. Related topics, such as the current IRS Delinquent International Information Return Submission Procedures for Forms 3520, and the Comments of the International Tax Planning Committee of the ABA Probate and Trust Division to the IRS on Form 3520 Penalties, will also be covered.

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