By: Ed Brown, Esq.
Please note that although the due date for filing your individual income tax return (IRS Form 1040) has been automatically extended from April 15 until July 15, that does not necessarily translate to other tax returns that may “piggy-back” on to your extended IRS Form 1040 receiving an automatic extension. Although the IRS has now announced that if you extend your Form 1040, this does in fact also extend the due date for any applicable gift tax return (IRS Form 709) to July 15, other tax returns that rely on the Form 1040 due date may still need to be extended by April 15, 2020 (unless the IRS issues further extension notices to the contrary).
Examples of other tax returns that may need extensions filed by April 15, notwithstanding the automatic July 15 extension for Form 1040s, include but are not necessarily limited to, the Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. The Form 3520 applies to those who created foreign trusts or received distributions from foreign trusts, and such persons will still need to file an extension by filing Form 4868 by April 15 in order to avoid the hefty late return penalties that apply.
Also, with respect to FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) for those who have a financial interest or control over one of more foreign bank accounts, you have until October 15, 2020 to file such Form for 2019 (hefty penalties if filed late).
For the following returns, it is likely safe to depend on the July 15 deadline, but you should nevertheless confirm with your tax return preparer before April 15:
Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations . For those who have a foreign corporation under their estate planning and financial structures.Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business . For those whose planning documents involve any foreign owned companies that engage in certain activities, which can include any U.S. 100% owned LLC (even if a disregarded entity) that is owned by a foreign trust.Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund . For those who are involved in any PFICs, such as foreign mutual funds.Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDEs), such as non-US LLCs, and Foreign Branches (FBs). Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships. Form 8938, Statement of Specified Foreign Financial Assets. Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation . For those who contributed any cash or property to a foreign corporation.Form 8992 (sometimes known as the GILTI form) if you own or are deemed to own (e.g., via a trust), directly or indirectly, an interest in a controlled foreign corporation.
In light of the penalty exposures and the ease with which the April 15 deadline for Form 3520 that still exists could be easily (yet inadvertently) overlooked, you should consult with your tax adviser to confirm which, if any, other tax returns such as the Form 3520 might still need attention before April 15. This is especially true since the IRS could change the rules above between now and April 15. If you are looking to us to address any of the above, let us know right away to ensure that we are not assuming your CPA or you are handling any April 15 deadlines without our involvement.
This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.
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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.
