IRS Adds Foreign Trust Information Reporting To Compliance Campaign Program

On May 21, 2018, the IRS Large Business and International (LB&I) division added foreign trust information reporting to its "compliance campaigns," signaling that the IRS sees a "compliance risk" in this area that requires a targeted response to achieve compliance objectives. LB&I specifically indicated that it will take a "multifaceted approach" to improving compliance, including through the use of "examinations and penalties assessed by the campus when forms are late or incomplete." With this latest announcement, individuals who may have foreign trust reporting requirements now face an increased IRS audit risk and should be sure to consult with their legal advisors to avoid potential penalties.