👀 5 IRS Forms Everyone Forgets (Each With a $10,000 Penalty)

Some annual forms are filed separately from your tax return — making them easy to miss or accidentally overlook. However, penalties for failure to file start at $10,000 per year and can sometimes reach significantly higher amounts.

Below are 5 forms that often fly under the radar:

1️⃣ FBAR (FinCEN Form 114)

Report on foreign bank and financial accounts if their aggregate balance exceeds $10,000 at any time during the year.

Penalty: Up to $10,000 for non-willful violation.

2️⃣ Form 3520 (Gifts & Inheritances)

Report on foreign gifts, inheritances, and transactions with foreign trusts.

Reporting Thresholds for Gifts/Inheritance: $100,000 per year from individuals. $20,116 (2025) — from corporations and partnerships.

Penalty: From $10,000 or a percentage of the value.

3️⃣ Form 3520-A (Foreign Trust)

Annual information return of a foreign trust if a U.S. person is an owner.

Penalty: From $10,000 or a percentage of the trust assets.

4️⃣ Form 5471 (Foreign Corporation)

Information return for U.S. persons who are officers, directors, or shareholders in certain foreign corporations.

Penalty: From $10,000.

5️⃣ Form 5472 (Foreign Owners of a U.S. Corp)

Report of reportable transactions between a U.S. company and a related foreign party.

Penalty: $25,000.

📌 These forms are a fundamental part of the reporting requirements for owners of foreign assets and structures. Missing even one filing can lead to substantial consequences.

💡 Advice: Document any new foreign accounts, assets, gifts, or transactions as they occur. Such events often create reporting obligations, so if in doubt, it's best to consult with a tax advisor beforehand.

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