Requirements for Filing Delinquent Returns
Taxpayers, who do not need to use the OVDP or the Streamlined Filing Compliance Procedures to file delinquent or amended tax returns to report and pay additional tax, should a file delinquent information return with a statement establishing reasonable cause for failure-to-file if they:
- have not filed required international information returns
- have reasonable cause for not filing the information returns in a timely manner
- are not under a civil examination or a criminal investigation by the IRS
- have not already been contacted by the IRS about the delinquent information returnsAs part of the reasonable cause statement, taxpayers must also certify that any entity for which the information returns are being filed was not engaged in tax evasion. If a reasonable cause statement is not attached to each delinquent information return filed, penalties may be assessed in accordance with existing procedures.
All delinquent international information returns other than Forms 3520 and 3520-A should be attached to an amended return and filed according to the applicable instructions for the amended return. All delinquent Forms 3520 and 3520-A should be filed according to the applicable instructions for those forms.
A reasonable cause statement must be attached to each delinquent information return filed for which reasonable cause is being requested. Information returns filed with amended returns will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.