Typically, penalties are calculated based on tax owed, international information returns, such as from 8938 can cost a taxpayer, if filed late, large penalties even of no tax is due. Some related penalties can reach up to $10,000 per form per month. Filing Form FinCEN 114 late or incorrectly can also result in hefty penalties. Filing US expat tax return and its related forms on a timely fashion is very important to avoid these costly penalties. US Expats who realize they have made reporting mistakes on their tax returns and are noncompliant should do their due diligence by either researching or seeking legal counsel or CPA assistance to explore their options, including IRS programs that can n=bring them back into full compliance. Such as Streamlined Offshore Procedures and ensure full understanding of the program requirements and possible outcomes of filing before making the decision to file under such programs.
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