Form 3520 & Foreign Gifts FBAR (FinCEN 114) & Form 8938 Form 5471 & Dual-Status 1040NR

Foreign Gift Over $100K, Overseas Accounts, or Dual-Status Visa Transition?
Quantify & Eliminate 25%–$10,000+ IRS Penalty Exposure.

International informational filings are the most heavily penalized area of the Internal Revenue Code—even when zero additional tax is owed. Work directly with Imran Baig, CPA to file or remediate Form 3520, FBAR, Form 8938, Form 5471, PFIC Form 8621, and Dual-Status 1040NR/1040 returns.

Book a $350 International Tax Session Received a CP15 / Foreign Penalty Notice? →

60 minutes directly with Imran Baig, CPA · $350 fee credited toward your engagement

IRC Statutory Penalty Matrix · Information Return Defense

Why Unreported Foreign Assets Trigger Automatic 5-Figure Penalties.

Many H-1B, L-1, Green Card holders, and US citizens with family abroad assume that if a foreign wire transfer is a tax-free family gift, or if overseas bank interest was already taxed in India, the UK, Canada, or Europe, the IRS doesn't need to know.

In reality, failing to attach international information returns also tolls the IRS statute of limitations indefinitely under IRC § 6501(c)(8)—leaving your entire tax return open to audit until the missing international forms are properly filed.

Statutory Civil Penalty Exposure
Form 3520 (Foreign Gift/Bequest >$100k) 5%/mo up to 25% of Gift
FinCEN Form 114 (FBAR >$10k Aggregate) $10,000+ (Inflation-Adjusted)
Form 8938 (FATCA Foreign Assets) $10,000 up to $60,000
Form 5471 (Foreign Corp Ownership) $10,000 per Form / Year
Statute of Limitations if Unfiled Remains Open Indefinitely

*Statutory civil penalties under IRC §§ 6039F, 6038, 6038D, and 31 U.S.C. § 5321. Non-willful compliance pathways and Reasonable Cause defenses can eliminate or reduce exposure.

Cross-Border Tax Specialties

Precision Compliance for Global Families, Founders & Visa Holders.

We scope every cross-border engagement carefully before quoting—coordinating foreign account reporting, Foreign Tax Credits (Form 1116), and treaty positions.

01

Form 3520 & CP15 Penalty Abatement

Reporting foreign gifts or inheritances over $100,000 from nonresident alien parents/relatives and foreign trust distributions. If you received a CP15 penalty notice assessing 25% of your gift, we draft IRC § 6039F(c)(2) Reasonable Cause protests.

02

FinCEN FBAR (Form 114) & Form 8938 FATCA

Complete reconciliation of overseas bank accounts (NRE/NRO, fixed deposits, ISAs, TFSAs), foreign brokerage accounts, and foreign pension funds across both Treasury FinCEN 114 and IRS Form 8938.

03

Streamlined Offshore Compliance (SDOP / SFOP)

Realized you missed FBARs and foreign income on prior returns? We prepare 3 years of amended 1040-X returns, 6 years of FBARs, and your Form 14654 / 14653 non-willful certification narrative.

04

Dual-Status (1040NR to 1040) Visa Transitions

Arrived or departed the US on H-1B, L-1, O-1, TN, F-1 OPT, or Green Card? We compute your Substantial Presence Test residency starting date, compare Dual-Status vs. IRC § 6013(g)/(h) Full-Year Joint elections, and apply tax treaties.

05

Form 5471 (Foreign Corporations) & Form 5472

US shareholders owning 10%+ of a foreign corporation (Category 2, 3, 4, or 5 filers, Subpart F, and GILTI calculations) as well as foreign-owned US single-member LLCs required to file pro-forma 1120 + Form 5472.

06

PFIC Reporting (Form 8621) & Foreign Tax Credits

Foreign mutual funds, ETFs, and ULIPs are taxed punitively as Passive Foreign Investment Companies (PFICs) under IRC § 1291. We handle Form 8621 QEF/Mark-to-Market elections and Form 1116 Foreign Tax Credit baskets.

Free Interactive Diagnostic

Received an IRS CP15 Foreign Penalty Notice?

Run our interactive IRS Notice 30-Day Triage Tool to check your statutory response deadline and see how Reasonable Cause abatement applies to Form 3520 and international penalties.

Launch IRS Notice Triage Tool →
Frequently Asked Questions

International Tax, Form 3520 & FBAR FAQs

Do I have to pay US income tax on a foreign gift or inheritance over $100,000, and what is Form 3520?

Gifts and bequests received by a US tax resident from a nonresident alien individual are generally not taxable as income, but if the aggregate amount exceeds $100,000 in a calendar year, you must file IRS Form 3520 for informational reporting. Failing to file Form 3520 on time triggers an automatic penalty of 5% per month up to 25% of the gift value under IRC § 6039F unless Reasonable Cause is established.

What is the difference between FinCEN FBAR (Form 114) and FATCA Form 8938?

Both reports cover foreign financial accounts, but they go to different agencies with different thresholds. FinCEN Form 114 (FBAR) is filed electronically with the Treasury Department when the aggregate maximum value of all foreign financial accounts exceeds $10,000 at any time during the calendar year. IRS Form 8938 (FATCA) is attached to your Form 1040 when specified foreign financial assets exceed $50,000 on the last day of the year (or $75,000 at any time) for single filers living in the US ($100,000 / $150,000 for Married Filing Jointly).

How can I catch up on unfiled prior-year FBARs or international forms without facing full penalties?

For taxpayers whose failure to report foreign financial assets and pay all tax due was non-willful, the IRS offers the Streamlined Domestic Offshore Procedures (SDOP, 5% miscellaneous offshore penalty on covered assets) and Streamlined Foreign Offshore Procedures (SFOP, 0% penalty for eligible expats), as well as Delinquent FBAR and Delinquent International Information Return Submission Procedures when no unreported income exists.

When do H-1B, L-1, F-1, or new Green Card holders need a Dual-Status (1040NR + 1040) tax return?

In the calendar year you transition from Nonresident Alien status to US Tax Resident status (either by passing the Substantial Presence Test or obtaining a Green Card), you are generally a Dual-Status alien—taxed only on US-source income for the nonresident portion of the year (Form 1040NR) and on worldwide income for the resident portion (Form 1040), unless you qualify for and elect the First-Year Choice or a joint residency election under IRC § 6013(g)/(h).

Direct CPA Representation

Resolve Cross-Border Filings With Zero Guesswork.

Book a 60-minute International Tax Strategy Session with Imran Baig, CPA. We will map out your exact FBAR, Form 8938, Form 3520, Form 5471, or Dual-Status 1040NR requirements and quote a clear engagement scope. Your $350 session fee is credited toward your engagement.

Book a $350 International Tax Session Message Our Practice

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Imran Baig, CPA · Illinois Licensed CPA · International & Cross-Border Tax Nationwide

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