Certain applicable tax-favored foreign trusts are now exempt from information reporting. With IRS Revenue Procedure 2020-7, the IRS now exempts from information reporting requirements certain tax-favored foreign trusts that are established exclusively to provide retirement benefits or to provide medical, disability or educational benefits. The IRS also provides guidance on how to request abatement, or a refund, of penalties for failure to comply with these information reporting requirements. An eligible individual requesting a refund of penalties must file Form 843, Claim for Refund and Request for Abatement. Contact us for assistance.
