OT: Fideicomiso's, the IRS and Oct 15th

eric · Since 13 Jan 2006 1872 Posts XTreme Poster

You may want to visit your accountant if you have one, and either file forms 3520, and 3520A, and/or go to the IRS website, get yourself into the Voluntary Disclosure Program and wait for instructions from the IRS.

You have until Oct. 15th.

If you have no idea what I am talking about you either don't have a Fide, or have a Fide but have not seen the is a "Fideicomiso a Foreign Trust" controversy swirling around the Baja forums.

<<www.irs.gov/voluntary disclosures

d. As most are aware the IRS extended the deadline for reporting foreign trusts, bank accounts, and corporations under the Voluntary Disclosure Program to October 15.
I phoned and told them I had contradictory opinions from twho different VDP offices on whether it is necessary to file for a fideicomiso. I received the following email from the IRS media office this morning (Monday, Sept, 21.) I have asked the media office to make an official release of this information so we do not need to rely on various offices with differing opinions.:

Tom,
Here's what I am told:

The response at the bottom of the string from Special Agent Arlette Lee has everything correct. The Fideicomiso is a foreign trust that needs to be reported annually on form 3520A and on form 3520 in any year when a reportable event (e.g. putting property into ot taking property out of the trust) occurs. The failure to file these forms can be cured without penalty by making a voluntary disclosure and filing the delinquent forms for the last six years, so long as the property in the trust is non-income producing. That is FAQ 42. If it is rental property and the income was not reported, the 20 percent penalty may apply to the taxpayer’s equity in the property, or the actual penalties may be lower if the taxpayer had reasonable cause for not filing the forms.

FAQs: http://www.irs.gov/newsroom/article/0,,id=210027,00.html

Main page: http://www.irs.gov/newsroom/article/0,,id=206012,00.html?portlet=7

Good luck!>>

The short answer seems to be, "Yes it is--for now," so you might want to file to cover your rear end.

Eric