Hunter J. Troup, CPA APC

Non-US Tax Forms & International Compliance

U.S. tax law reaches across borders. Whether you hold foreign bank accounts, own interests in foreign corporations, or receive income from overseas sources, DTM brings the specialized expertise to keep you compliant — and penalty-free.

Why International Tax Compliance Matters

The IRS imposes some of the most severe penalties in the tax code for failures to file international information returns — often $10,000 or more per form, per year, regardless of whether any tax is owed. Many of these obligations are unknown to taxpayers until they are already out of compliance.

DTM works with U.S. citizens, green card holders, and resident aliens who have foreign financial interests, as well as foreign nationals and foreign-owned entities with U.S. tax obligations. We identify every applicable filing requirement and prepare each form with precision.

Penalty notice: International information returns carry some of the highest penalties in the tax code — often $10,000 or more per form, per year, independent of any tax owed. Early identification and voluntary disclosure options are available for taxpayers who are out of compliance.

FinCEN 114FBAR

FBAR — Foreign Bank Account Report

U.S. persons with a financial interest in, or signature authority over, foreign financial accounts exceeding $10,000 in aggregate at any point during the year must file FinCEN Form 114 (FBAR) with the Financial Crimes Enforcement Network. This is a separate filing from your tax return and carries its own deadlines and penalty regime.

Key Filing Facts

Who must file: U.S. citizens, residents, and certain entities with foreign account authority

Threshold: Aggregate value of all foreign accounts exceeds $10,000 at any time during the year

Due date: April 15, with automatic extension to October 15

Penalties: Up to $10,000 per violation (non-willful); up to $100,000 or 50% of account balance per violation (willful)

Form 8938FATCA

FATCA — Statement of Specified Foreign Financial Assets

Form 8938 is filed with your federal income tax return and reports specified foreign financial assets above certain thresholds. FATCA (the Foreign Account Tax Compliance Act) requires both U.S. taxpayers and foreign financial institutions to report foreign asset holdings to the IRS.

Key Filing Facts

Covers: Foreign bank accounts, foreign securities, interests in foreign entities, foreign pension plans, and other foreign financial instruments

Thresholds vary: $50,000–$200,000 depending on filing status and whether taxpayer resides abroad

Filed with: Form 1040 (or applicable business return)

Penalties: $10,000 for failure to disclose; up to $50,000 for continued failure after IRS notification

Form 8621PFIC

PFIC — Passive Foreign Investment Company Reporting

U.S. persons who own shares in a Passive Foreign Investment Company (PFIC) — typically a foreign mutual fund, foreign ETF, or certain foreign holding companies — must file Form 8621. PFIC rules impose punitive tax treatment on undistributed income and gains unless an election is made.

Key Filing Facts

Common PFICs: Foreign mutual funds, foreign ETFs, certain foreign insurance products, foreign holding companies

Elections available: QEF (Qualified Electing Fund), Mark-to-Market, or default excess distribution regime

One form required per PFIC per year

Strategy matters: Election choice significantly affects tax treatment — DTM evaluates the optimal approach for each holding

Form 5471Foreign Corps

Form 5471 — Information Return for Foreign Corporations

U.S. persons who are officers, directors, or shareholders of certain foreign corporations must file Form 5471. The form is one of the most complex in the international tax code, requiring detailed financial statements, ownership schedules, and income calculations including Subpart F income and GILTI.

Key Filing Facts

Who files: U.S. shareholders owning 10%+ of a foreign corporation; officers and directors of certain foreign corps

Includes: Balance sheets, income statements, E&P calculations, Subpart F income, GILTI inclusions

Categories: Five filing categories (1–5) with different disclosure requirements

Penalties: $10,000 per form per year; up to $50,000 for continued failure

Form 5472Foreign-Owned US

Form 5472 — Foreign-Owned U.S. Entity Transactions

Form 5472 is required for U.S. corporations that are 25% or more foreign-owned, and for foreign corporations engaged in a U.S. trade or business. It reports reportable transactions between the entity and its foreign related parties. Notably, foreign-owned single-member LLCs (disregarded entities) are treated as corporations for this purpose.

Key Filing Facts

Who files: 25%+ foreign-owned U.S. corporations; foreign corporations with U.S. trade or business; foreign-owned single-member LLCs

Reports: Sales, rents, royalties, loans, services, and other transactions with foreign related parties

Foreign-owned SMLLCs: Must obtain an EIN and file a pro forma Form 1120 with Form 5472 attached

Penalties: $25,000 per form per year; $25,000 for each 90-day period of continued failure

Form 3520Foreign Trusts & Gifts

Form 3520 — Foreign Trusts & Large Foreign Gifts

U.S. persons who receive large gifts or bequests from foreign persons, or who have transactions with foreign trusts, must file Form 3520. Foreign trust owners also file Form 3520-A annually.

Key Filing Facts

Gifts: Report foreign gifts exceeding $100,000 from foreign individuals or estates; $17,339+ from foreign corporations or partnerships

Trusts: Report creation of, transfers to, or distributions from foreign trusts

Form 3520-A: Annual information return for foreign trust owners

Penalties: 35% of gross reportable amount for trust transactions; 5% per month (up to 25%) for gifts

Form 926Transfers to Foreign Corps

Form 926 — Transfers to Foreign Corporations

U.S. persons who transfer property to a foreign corporation in certain nonrecognition transactions must file Form 926. This form ensures that gain is recognized (or deferred under specific rules) when appreciated property leaves U.S. tax jurisdiction.

Key Filing Facts

Triggers: Transfers under IRC §§ 351, 354, 356, or 361 to a foreign corporation

Threshold: Transfer of cash exceeding $100,000 in a 12-month period, or any transfer of appreciated property

Penalties: 10% of fair market value of transferred property; up to $100,000 for intentional disregard

International Tax Compliance Starts Here

International tax obligations are complex, interconnected, and unforgiving of errors. DTM evaluates your complete cross-border profile to identify every applicable filing requirement and prepare each form accurately.