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late filing of gift information from foreign person

Technical topics regarding tax preparation.
#1
art69  
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New Jersey
Taxpayer received $1,000,000 bequest from a foreign person but failed to report the receipt of gift on Form 3520. The taxpayer kept the funds in foreign accounts and reported properly the FBAR reports and paid all applicable income tax. The penalty for the late filing of Form 3520, which can be as high as $250,000, does not apply for reasonable cause. Usually there can be reasonable cause for erroneous specific advice of a professional. Is there authority that the lack of knowledge of a professional, when he knew applicable facts, can be considered "reasonable cause?"
 

#2
Nilodop  
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Pennsylvania
In Neonatology
Associates, P.A., 115 TC 43 (2000), a f f d 299 F.3d 221 (CA-3,2002), fhe Tax Court indicated that to qualify for relief based on reliance on a tax advisor, the taxpay- er must show that (1) fhe advisor was a competent professional; (2) the advisor was provided with all necessary infor- mation; and (3) the taxpayer reasonably relied on the advisor in good faith.
If I understand your facts, you'd not meet this test, because the professional knew the facts but not the law in the area. Am I understanding that right? My quote is from this article, which is worth your reading. http://www.paleyrothman.com/wp-content/ ... gy-03_.pdf
 

#3
Guya  
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London, United Kingdom
Did the client file 8938s? Were all PFICs reported? All s988 transactions? Can the client use the streamlined procedures to minimise penalties?
PS – Greeting from London, England. Grey and rainy ...
 

#4
Nilodop  
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