Genuine Issues of Material Fact Existed Regarding Whether Foreign Trust Owner’s Failure to File Annual Returns Was Due to Reasonable Cause (James, DC Fla.)

A genuine issue of material fact existed with respect to penalties assessed against a foreign trust owner for his failure to file Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Questions remained regarding whether the individual’s accountant advised him not to file the return and whether the individual reasonably relied upon such advice.

Viewed in the light most favorable to the individual, the record showed that the individual timely provided all required trust forms to the accountant, relied upon his advice on all appropriate filings relating to the trust, and believed that he had filed all required forms based on his conversations with his accountant.

B.C. James, DC Fla., 2012-2 ustc ¶50,520

Other References:

Code Sec. 6048

CCH Reference – 2012FED ¶36,004.10

Code Sec. 6677

CCH Reference – 2012FED ¶39,820.024

Tax Research Consultant

CCH Reference – TRC ESTTRST: 36,258

 

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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